Federal contractors who hold multi-year fixed price contracts are feeling great pressure from this year’s high rates of inflation. DoD guidance issued in May essentially stated that these contractors should consider themselves up a well-known creek without a paddle. New guidance issued earlier this month offers a glimmer of hope by providing Contracting Officers a couple of options to provide relief to struggling contractors.
Read MoreUnder Executive Orders issued by President Biden, and before him, President Obama, federal contractors must pay a minimum wage to their nonexempt employees who work on or “in connection with” many federal contracts. The “in connection with” aspect of these Orders can trip up even seasoned federal contractors.
Read MoreOn June 23, 2022, the U.S. Department of Labor issued its annual memo that sets health and welfare (“H&W”) fringe benefit rates for Service Contract Act (“SCA”) covered contracts. Over the last few years, the rates have barely moved an inch. This year, the rates are going up by about 4%.
Read MoreA recent Maryland case demonstrates how state law can supplant federal law with respect to wage and hour obligations. Federal contractors must be vigilant to avoid getting caught in this sometimes quite tangled web.
Read MoreIf a government contractor has a bone to pick, figuring out who to complain to can feel a lot like a customer service phone tree. If you press three instead of one, you can find yourself being transferred to another department after hours of being on hold. Or you can get completely different answers depending on who you speak to.
Read MoreThe Director of Defense Pricing and Contracting recently issued a memo to guide contracting officers in response to the impacts of inflation on federal contracts. Read on to find out how there’s some hope for future contracts, but little relief for contractors who hold existing fixed-price contracts.
Read MoreThe refusal of the Government to pay for undisputed costs unless the contractor signs a release of all costs (disputed or not) seems heavy handed. A recent case holds that a government contractor cannot claim that the release was obtained through economic duress when litigation is an alternative.
Read MoreThe Supreme Court this week agreed to hear an appeal to resolve differing interpretations of the Department of Labor’s “salary basis” regulations. Both sides are adamant that the “plain text” of one provision or the “plain terms” of another compel their favored result—that a highly compensated employee should, or should not, be entitled to overtime pay.
Read MoreContractors who have disputes with the Government must first submit a claim to their Contracting Officer for a final decision. If they don’t like the outcome, they can appeal the Contracting Officer’s Final Decision. Two recent decisions address what happens when you have a new idea after the fact.
Read MoreFrom time to time, I see a government contracts case that sends chills down my spine. A recent decision painfully reminds me of how the law governing our unique parcel in the vast lands of the legal world is rife with hard-to-see pools of quicksand that can trap even the most sophisticated contractors.
Read MoreThe Department of Labor is set to publish a Notice of Proposed Rulemaking proposing the largest overhaul to Davis-Bacon Act regulations in 40 years.
Read MorePresident Biden issued an Executive Order on February 4, 2022 that will require contractors to enter into project labor agreements for large scale federal construction projects. Although PLAs have been “encouraged” for some time, this order will transform this preference into an absolute requirement.
Read MoreThe Department of Labor announced yesterday the Wage and Hour Division plans to hire 100 investigators this year. For sure, they’ll be earnest and energized. That’s why a solid grounding in the wage and hour laws affecting the government contractor community will be a powerful tool to ensure you get a fair shake.
Read MoreIncreasing a minimum wage rate sounds simple enough. However, in our world of federal contracting, simple ideas often get kinda complicated. Here are some of the tasks you need to do as the new Contractor Minimum Wage Executive Order gets rolled out.
Read MoreThere’s a new rule in town that kicks the definition of “commercial item” out of the Federal Acquisition Regulations (“FAR”) and replaces it with separate definitions for “commercial product” and “commercial service.” While this is not a substantive change, it should make life easier.
Read MoreThe Department of Labor has now issued its final rule implementing a raise in the minimum wage for workers who perform on or in connection with federal contracts. Here are some thoughts about the new regs and how the new $15 per hour rate may require contractors to devote renewed attention to whether their employees are receiving the required minimum.
Read MoreMany federal contractors are being asked to accept contract modifications to implement President Biden’s vaccine mandate. So, what will compliance look like? For now, things are a bit vague; however, we hope the roll-out of this mandate will be reasonable. Contractors should be allowed some flexibility if they’re making good-faith efforts to cajole their workforces into being fully vaccinated.
Read MoreThe evolving COVID-19 vaccine mandates for federal employees and contractor employees are a work in progress. New Executive Orders that will require near universal vaccination of employees are replacing the vaccine-or-test mandate issued mere weeks ago. Read on for more about the new requirements and the confusion that may ensue in the meantime.
Read MoreUPDATE: President Biden is expected to announce executive orders that will mandate universal vaccination for federal workers and contractor employees with no testing option. We will post an update when the expected orders are issued. Federal contractor employees who work on Government sites must comply with President Biden’s vaccine or test policy. Must contractors pay employees for their time to get tested if they refuse to get a vaccine? Must contractors foot the bill for the tests? So far, these questions are going unanswered.
Read MoreOn July 21, the Department of Labor (“DOL”) published proposed regulations that implement President Biden’s Executive Order establishing a $15 an hour minimum wage for workers who perform on or in connection with federal contracts. While this is a new rule, it’s nearly identical to the existing federal contractor minimum wage requirements. Thus, what was clear before is still clear. What wasn’t, isn’t.
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