Service Contract Act (“SCA“) covered fixed priced contracts generally have one of two FAR clauses for price adjustments — either FAR 52.222-43 or -44. But there are different price adjustment clauses and provisions for cost reimbursement contracts. Where the SCA provisions and the standard cost reimbursement clauses overlap is in hybrid contracting, involving both fixed price and cost reimbursement CLINS. In those circumstances the overlapping price adjustment issues can be murky.
Read MoreDOL recently announced that US Marshals arrested a New York restaurateur for failure to respond to a subpoena as part of a Fair Labor Standards Act investigation. This is the second such arrest in the last few months. As I said in my blog about the first arrest - things simply go better when employers take DOL investigations seriously.
Read MoreJulie Su is posed to ascend the ladder at DOL and become the next Secretary of Labor, as Marty Walsh leaves to go play hockey.
Read MoreJust out — a White House memorandum directing all federal contracting agencies to hire labor advisors to help coordinate with DOL and comply with the laws regarding labor and employment which pertain to federal procurements. This includes especially the Service Contract Act and the Davis-Bacon Act, but also many other labor requirements and Executive Orders.
Read MoreThe Wall Street Journal got the minimum wage wrong. But the good news is they issued an errata shortly thereafter correcting the mistake.
Read MoreDoughnut chain agrees to future compliance at company’s 242 US locations for failure to include bonus income in calculating regular rate of pay due for overtime
Read MoreWith the new year comes new minimum wage rates applicable to employees who work on or in connection with many federal contracts. Consider this a courteous nudge to make sure you’re complying with the correct minimum wage requirements.
Read MoreThe Inflation Reduction Act of 2022 gives tax benefits to project owners who assure the payment of Davis-Bacon Act prevailing wages and benefits on certain energy construction projects. The devil, of course, is in the details.
Read MoreThe Fair Labor Standards Act (FLSA) authorizes the U.S. Department of Labor (DOL) to investigate, gather data, interview employees, enter and inspect work sites and review records as well as to gather data about hours worked and compensation paid. It can be quite intrusive; however, cooperation is certainly preferable to a perp walk. Read on to learn more about how an employer found himself arrested by the U.S. Marshal.
Read MoreWorkers don’t get to pick whether they should be classified as independent contractors or as employees. The burden is on the employer to do the classification analysis. And that burden will just get tighter when the Biden Administration proposed regulations get finalized.
Read MoreThis blog will serve as my final blog at Abrahams Wolf-Rodda. I have accepted a position with another law firm located in Washington D.C. in the Labor and Employment practice group. Thank you to all of the readers of my blogs. By Kirby M. Rousseau.
Read MoreBack in August 2022, I was puzzled by the small annual increase in the Service Contract Act (“SCA”) health and welfare rate which jumped by only 5%. At that time raging inflation was exceeding 8%-9%. Now I think I have some idea of what was going on. The CPI was overestimating the health insurance inflation.
Read MoreMany (if not most) of the myriad laws, regulations, and executive orders that apply to federal contractors each come with their own requirements to notify employees of the existence of these laws and their rights under them. For every rule, there’s a poster. News flash: they change - All. The. Time.
Read MoreFreddy’s back! DOL is tinkering with the independent contractor rules yet again. And one Philadelphia medical staffing company had to cough up $9.3M to cover the back wages, liquidated damages, and civil money penalties for going to far.
Read MoreDOL publishes a Notice on the Federal Register listing the new Federal Contractor Minimum Wage rates starting January 1, 2023.
Read MoreNo Davis-Bacon Act price adjustment claims are allowed if the contract has a clause that requires wage and fringe benefit escalations be priced into the option year quotes.
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 MoreSometimes the wage and hour regulations cannot be taken literally. Instead, you need to figure out the regulatory intent. For example, the SCA and DBA regulations bar the employer from claiming a credit for paying social security, worker’s comp and unemployment premiums. These tax like payments are not fringe benefits. But other federal and state mandated benefit plans like Obamacare, Romneycare in Massachusetts, holidays, and leave are fringe benefits and can be credited towards compliance.
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.
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