Updated

President Barack Obama says federal contractors that violate labor laws shouldn't get a competitive advantage over companies that play by the rules.

Obama is signing an executive order requiring contractors to give their workers more rights in labor disputes.

The order requires companies to disclose labor violations when they're seeking lucrative government contracts. It also helps workers address grievances over pay, sexual assault or harassment.

Obama says the vast majority of contractors follow the law, but some who don't still keep getting contracts. He says it's a bad deal for taxpayers.

Obama's order comes one day after House Republicans voted to sue Obama for allegedly exceeding his presidential powers.

Obama says he's taking action because Congress isn't doing anything to help working Americans.