Published on : Saturday, August 2, 2014
International Franchise Association (IFA) President & CEO Steve Caldeira, CFE, issued the statement below on President Obama’s Executive Order to effectively “blacklist” certain businesses from receiving federal contracts.
“Yesterday’s Executive Order barring companies with any Fair Labor Standards Act (FLSA) infraction from competing for federal contracts holds American businesses to an unreasonable standard of perfection. The order is hypocritical but not surprising; as even the President’s own Department of Labor recently settled a grievance brought by over 1,900 of its own employees.
The FLSA has many convoluted provisions that are subject to interpretation, and even the most well-intentioned companies could be forced to close their doors if they lose crucial government business. Surely policymakers can find a more effective way to enforce our country’s workforce laws without resorting to absurd and outsized punishments with lasting impacts for minor offenses.”