We recently reported on a lawsuit, filed by the Associated Builders and Contractors (ABC), challenging the “blacklisting” Executive Order and the implementing regulations. As we noted in our article, a ruling by the Court on ABC’s request for a preliminary injunction should be issued in short order, given that the effective date for the implementing rule is October 25, 2016.
Subsequent to the posting of our article, on October 24, 2016, the U.S. District Court in Beaumont, Texas granted in part ABC’s motion for a preliminary injunction. In particular, the Court held that ABC “satisfied all the prerequisites for the issuance of a preliminary injunction with respect to those portions of the Executive Order, FAR Rule, and DOL Guidance that impose new reporting requirements on federal contractors and subcontractors and restrict the availability of arbitration.” Accordingly, the Court “enjoined” the defendants from “implementing any portion of the FAR Rule or DOL Guidance relating to the new reporting and disclosure requirements regarding labor law violations as described in Executive Order 13673 and implemented in the FAR Rule and DOL Guidance.” Further, the Court “enjoined” the defendants “from enforcing the restriction on arbitration agreements.” Here’s is a link to the opinion.