Executive order: Overview, definition, and example
What is an executive order?
An executive order is a directive issued by the President of the United States that manages the operations of the federal government. It has the force of law and is used to direct government agencies, implement policies, and manage administrative functions without the need for congressional approval. Executive orders are typically used to clarify or enforce existing laws and regulations.
Why is an executive order important?
Executive orders allow the President to act quickly on matters of national importance, such as national security, public health, or emergency responses. They can have immediate legal effects, influencing policy, regulation, and government actions. However, they cannot create new laws or override existing ones—only Congress has the power to pass legislation. Executive orders are often scrutinized for their potential impact on industries, citizens, and the legal landscape.
Understanding an executive order through an example
If the President issues an executive order to increase the minimum wage for federal contractors, it would require all federal agencies to comply with that directive. Federal contractors would be required to adjust their pay rates in accordance with the order, even though Congress has not passed a new law on the matter.
Example of an executive order clause
Here’s how an executive order clause may appear in a contract or agreement:
"The Contractor agrees to comply with all applicable Executive Orders issued by the President of the United States, including those related to labor standards and minimum wage requirements for federal contractors, as amended from time to time."
Conclusion
Executive orders are powerful tools for presidential action, allowing the President to implement policies and direct government agencies swiftly. While they cannot create new laws, they can have wide-reaching effects on businesses, individuals, and government operations. Understanding the implications of relevant executive orders is crucial for companies dealing with federal contracts or regulations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.