Federal Contractors Feel Brunt Of Presidential Mandates

Date: October 13, 2015

President Obama’s Executive Orders Targeting Federal Contractors, Analysis Finds

An analysis in USA Today examined President Obama’s use of executive orders throughout his Presidency, finding that Federal government contractors have “been disproportionately impacted” by his use of these orders. Since entering office in January 2009, President Obama “has signed at least 15 executive orders and presidential memoranda aimed at contractors.” These orders have dictated everything from “hiring and firing practices, compensation policies, and working conditions” to mandates requiring that contractors “meet energy efficiency goals, prohibit human trafficking and other exploitative hiring practices, and ban texting while driving.” Through the use of such orders, USA Today said, the President is attempting “not just to get a better deal for the taxpayer, but also to set economic and social policy on minimum wage, paid leave and paycheck fairness.” White House Office of Federal Procurement Policy administrator Anne Rung explained, “When the president issues an executive order, it reinforces that we care. That kind of statement can not only drive greater economies and efficiency in the federal government, it can have a trickle-down or multiplier effect on the economy at large.” However, some call “Obama’s aggressive use of the executive order” a habit that “will kill off small businesses and may be unconstitutional.”

What This Means For Small Businesses

Though President Obama and Administration officials have touted their regulatory efforts as positive for Federal contractors, in reality they represent some of the hallmarks of the most burdensome, aggressive regulatory oversight of this Administration, and are harmful to small businesses, especially those seeking business relationships with the federal government. As House Small Business Committee chair Steve Chabot (R-Ohio) argued in USA Today, “The shame of it is that the people who are going to suffer are small businesses and families all across this country. The large corporations will find a way to deal with these new rules and regulations. … Hiring a few more lawyers or accountants to deal with these things is not a huge deal for them.”

Additional Reading

NFIB previously noted President Obama’s efforts to mandate paid sick leave for Federal contractors.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

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