When new employees start work on a SCA covered contract, the employer faces a connundrum with respect to vacation bnefits. The employer can furnish the benefits immediately, and just pay benefits in excess of the SCA, resulting in payments above the minimum prevailing wage and impairing its right to a price adjustment the next option year. Or it can pay no vacation benefits, or just give leave without pay, and demoralize the new workers. But there is a third although relatively infrequently used course of action called an advanced or prepayment agreement or policy whereby the worker elects to receive the vacation benefit immediately on hiring, but the employer reserves the ability to get a credit for furnishing the benefit on the next anniversay date of employment.
Read MoreDon’t let the Boards of Conract Appeals fool you. Contractors have 120 days to appeal decisons to the Federal Circuit. Sitting on your claim for reimbursement is never a good idea. Once you get a final decision, the appeal clock is running.
Read MoreThe DOL has issued final FLSA regulations defining the joint employmrent relationship and narrowing the application of the rule.
Read MoreDOL requires the annual use or cash out of the vacation benefit under the SCA and does not allow covered workers to bank or carry forward the unused vacation leave into another anniversary period .
Read MoreEmployers facing the pressure of Covid-19 or different business slowdown, and considering a reduction of exempt employee pay and hours of work, may be relieved to know that a bona fide reduction of hours due to financial exigencies will not prevent an employee from still qualifying as exempt. if still paid over the miminum salary threshold.
Read MoreEven in the era of a pandemic, or especially in the era of a pandemic, the wage and hour machine grinds onward.
Read MoreDrilling work presents a a perrenial issue of which prevailing wage law is in play. One of the most challenging parts of wage and hour law revolves around the overlap of Service Contract Act (“SCA”) and Davis-Bacon Act (“DBA”) coverage. It is entirely possible for an employee doing the same physical drilling activity to be covered by a different wage law on the next contract.
Read MoreEffective immediately on May 19, 2020, the Department of Labor (“DOL”) published a new final rule repealing some of their old interpretive guidance to clarify which businesses may or may not have a “retail concept.” under the outside sales exemption of the Fair Labor Standards Act (“FLSA”). After criticism from the community and some courts, the DOL has since seen fit to remove the opaque non-exhaustive lists of eligible and ineligible work from their regulations.
Read MoreHere is a short summary of the differing scope of geographical coverage of the various federal wage and hour laws.
Read MoreUnder The Families First Coronavirus Response Act (“FFCRA”), employers must pay the coronavirus leave in addition to any other leave requried by the prevailing wage laws. There is no credit or offset. As to whether government contractors must also pay additional health and welfare benefits, on top of the virus leave, for the time being that ball is up in the air, awaiting DOL clarification, although prudent employers may decide to pay it nonethless in the interim given the uncertainty.
Read MoreThe U.S. Department of Labor (“DOL”) Wage and Hour Division (“WHD”) issued new guidance and posting requirements for the coronavirus leave requirements on March 26, 2020. Earlier this week, Congress enacted legislation which requires certain employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The Families First Coronavirus Response Act (“FFCRA” or “Act”) requirements go into effect next Wednesday April 1, 2020.
Read MoreOn March 18th, 2020, President Donald Trump signed H.R.6201 or the Families First Coronavirus Response Act (“FFCRA”) into law providing emergency leave benefits for workers unable to perform their job duties due to the pandemic. The law marks a victory for those seeking to expand sick, family and medical leave rights of workers.
Read MoreThe Families First Coronavirus Response Act (FFCRA) bill was passed by the U.S. House of Representatives and sent to the Senate this week. The bill would allow for two weeks of fully paid sick leave and up to 10 weeks of partially paid leave (at two-thirds pay) for workers of small business employers meeting certain conditions. The leave would be financed by a tax credit.
Read MoreHow frequently do employers have to pay their workers? The answer is it depends. Some of the variables it can depend on include wheher the employer is working on a government construction contract, what state the worker is performing labor in, what is the classification of the worker (exempt or nonexempt), and how much is the worker paid.
Read MoreThe Wage and Hour Division (“WHD”) recovered a record of $322 million in back wages that were owed to workers in fiscal year 2019.
Read MoreThe Davis-Bacon Act (“DBA”) still applies to military privitization construction projects, and they are treated differently than the commercial development litigated in the City Center case.
Read MoreUnder the FAR SCA Price Adjustment clause, notice must be furnished to the Government within 30 days of receipt of a new wage determination to be incorporated into a contract in the option or extended period of performance. But that notice proviso is not interpreted strictly and it should not be used to bar price adjustment claims as per se untimely after the 30 day window has past.
Read MoreWhile the civil money penalty for violation of the overtime laws by federal contractors is suposed to be increased by the rate of inflation every January, this year the $27 penalty is being held steady. However, violation of the overtime laws done in prior years, but uncovered and enforced now, will still be assessed the $27 a day current penalty rather than the lesser fines in existance at the time of the violation.
Read MoreDOL issues new joint employment rules under FLSA meant to clarify and narrow the definition of an “employer” and provide more protection to franchisors, contractors, and businessess who indirectly engage workers through other employers.
Read MoreComments filed by employers and employees in response to the DOL’s proposed fluctuating workweek (“FWW”) method regulations demonstrate again that the two parties see different things in the same proposed regulation.
Read More