Posts in Service Contract Act
Greatest Hits - Federal Contractor Vacation and Sick Leave Rules

We’ve posted hundreds of blogs over the last six years. Looking back, three out of the top 10 posts are about Service Contract Act vacation rules. For a benefit that’s all about relaxation, it’s one of the most vexing SCA requirements—so much so that I believe they’re a poster child for the cliche that no good deed goes unpunished.

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The Federal Enclave Doctrine – A Practical Guide to its Application

A federal enclave doctrine has emerged that precludes the application of state laws to those contracts, including state wage and hour laws, which are being performed in enclaves where only the federal government has exclusive jurisdiction. But the devil is in the details of figuring out if an enclave exists. This blog is meant to identify a process to make that determination.

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Don’t Defund the Police – The Number of Wage & Hour Investigators Is Getting Too Low

The U.S. Department of Labor Wage & Hour Division has only about 720 investigators. Once upon a time it had over 1,000 investigators. This means that those who would cross the lines set for child labor, minimum wage, and overtime pay, along with noncompliance with Government contract wage laws, are less likely to be found or punished.

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What Happened Here? DOL finds “Widespread Violations” of Government Contract Labor and Contract Violations

The Wage and Hour Division (“WHD”) of the US Department of Labor (“DOL”) announced last week that it recovered “$1.5 million dollars of back wages and damages for more than 400 workers” working for employers that had “federally funded” contracts. The announcement doesn’t convey the underlying cause of this multi-contractor compliance breakdown—the scale of which actually is extremely rare. I sure would like to know what happened here.

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A Thumb on the Scale? Department of Labor Establishes “Partnership” with Union

The Wage and Hour Division (“WHD”) of the US Department of Labor (“DOL”) announced last week a three-year “collaborative agreement” with a union to educate workers and identify labor law violations. Is this an unfair thumb on the scale? Hopefully not, but this agreement arguably erodes the degree of independence that should accompany the Government’s enforcement of employment laws.

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How Low Can You Go? GAO Rejects Protest Alleging Below Cost Wage Rates

Here’s some old news that bears repeating. When it comes to prices offered to the Government to perform a fixed-price service contract, GAO won’t second guess the award of a contract with low-ball prices even though it might appear there’s no way the contractor would pay the minimum wage rates required by the Service Contract Act.

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Who Will Be the Bag Holder -- the TPAs or the Employers -- for the Admin Fees DOL Recently Disallowed For Davis-Bacon Act and Maybe SCA H&W plans?

DOL’s new DBRA regulations has some clarifications and guidance as to its future treatment of benefit plan administrative expenses charged by third party administrators to various DBRA and SCA H&W plans. Get ready for more enforcement actions by DOL to disallow plan expenses and for more disputes between employers and TPAs over the cost of such fees.

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Trees Don’t Grow to the Sky: New Service Contract Act Health and Welfare Levels Are Finally Set

The new Service Contract Act (“SCA”) health and welfare (“H&W”) rates are out and made effective to new solicitations and contracts on June 27, 2023. Except for in Hawaii, the new H&W rates are $4.57 an hour if the sick leave executive order applies, and $4.98 an hour if it doesn’t.

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