Federal contractors may face labor ‘litmus test’

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in Human Resources

A new regulation that would deny federal contracts based on a company's labor and tax records may be in place by year-end.

The Clinton administration proposed rules this summer that would allow a government procurement officer to blacklist a bidder if the company has violated any federal employment, labor, tax, environmental or consumer protection law within the past three years.

Business groups persuaded the House of Representatives to pass a bill that would deny funding of the regulation for a year. Senate action is uncertain.

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