Under the Davis-Bacon Act (“DBA”), the possible right of both the prime and the subcontractor to a price adjustment, if any, occurs upon the start of option year, extension, or new phase of a construction project and is governed by the terms of their contract and subcontract. Here is some friendly guidance — read your contract carefully, especially before you bid.
Read MorePresident Biden has issued an Executive Order closing federal agencies in honor of President Carter. Existing policies make it clear that federal employees will, for the most part, receive paid leave. However, federal contractors must exercise their judgment about furnishing leave.
Read MoreOne place for the Department of Government Efficiency to propose a reform is the overly restrictive commercial exemption to the Service Contract Act.
Read MoreThe looming ban on TikTok will be front and center before the Supreme Court next month. But the Court’s decision about whether the ban is constitutional won’t change a thing for federal contractors. So – enjoy the debate over TikTok, but don’t rethink your compliance practices.
Read MoreWith the advent of a second Donald Trump administration, I had expected significant policy and enforcement changes at the Department of Labor. However, the President’s selection of Lori Chavez-DeRemer suggests changes will be course corrections, not u-turns.
Read MoreTier 1 help desk work is generally considered to be nonexempt activity and covered by both the Fair Labor Standards Act (“FLSA”) and (where a federal government service contract is involved) by the Service Contract Act (“SCA”).
Read MoreA Texas federal court rejected the Department of Labor’s recent increase to the salary threshold applicable to FLSA white-collar exemptions. That’s good news for employers because it will expand the numbers of workers exempt from the FLSA’s overtime and minimum wage requirements. But is this decision a worthy judicial foray into a political decision?
Read MoreThe SCA is a complex law. But here are some basic rules and issues you need to comply with.
Read MoreThere is an answer on how to conform a wage rate for team leaders under the Service Contract Act. You just how to know where to look. DOL suggests you pay them 110% of the journeyman rate.
Read MoreThe US Department of Labor (“DOL”) announced actions it is taking to combat what it calls “coercive ‘fine print’ provisions” in employment agreements. One such action led to an injunction that barred a company from using its employment agreement to shift the cost of a wage and hour suit onto the very truck drivers who brought the claim. So, be advised—DOL is reading your fine print.
Read MoreA service contractor loses a pension tail liability claim, which with a little planning and a small change to their collective bargaining agreement ("CBA") may have been avoidable.
Read MoreThe US Department of Labor has issued its announcement of federal contractor minimum wage rates for 2025. For most nonexempt federal contractor employees, the new rate will be $17.75 per hour. However, contractors must review their wage rates across the board to make sure they're in compliance with the multiple minimum wage rates that could apply.
Read MoreThe Government Accountability Office ("GAO") whiffed in its recent decision in the Maximus Federal Services bid protest. The contractual Labor Harmony Agreement ("LHA") clause violates the FAR neutrality mandates, and a long line of previous decisions says GAO could have stepped up and curbed this excess. It was a missed opportunity for GAO to do the right thing.
Read MoreTwo weeks ago, I wrote about a restaurant that settled a case over the alleged mishandling of tips and poor recordkeeping. While I don't generally hit the same topic back-to-back, I saw a recent Department of Labor lawsuit alleging a restaurant violated almost every wage and hour rule. For some of you, we really need to get back to basics.
Read MoreGenerally , even small periods of time such as a few hours spent working directly on Service Contract Act ("SCA") covered contract, require payment of the prevailing wages and fringe benefits. The SCA adopts the FLSA definition of de miminis working time, which is commonly restricted by DOL to periods of time of less than 10 minutes.
Read MoreGovernment contractors must navigate the often perilous waters of the wage and hour laws specifically directed at them. So what can federal contractors learn from a case involving tip pool and tip credit violations brought against a Mexican restaurant in Pennsylvania? In a word—lots.
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Get your name on a consequential federal statute and achieve immortality, The wage and hour world provides one of the best examples of that -- the unlikely but true history of the enactment of the Davis-Bacon Act.
Read MoreLast week, a Texas Federal Court granted a permanent injunction that strikes down the Federal Trade Commission’s (“FTC”) much-maligned ban on employee non-compete agreements. Many tout this ruling as a HUGE victory for employers. But which employers? Current ones? Future ones? Perhaps “we have met the enemy and he is us” (thanks Walt Kelly and Pogo).
Read MoreLarge government contractors finally appear to be sharing in some of the stock market prosperity. Particularly in the military industrial complex, the market has been rewarded defense contractors with higher valuations. Whether it is the Russian invasion of Ukraine, the turmoil in the Middle East, or just a realization that China is posing a new challenge to American supremacy, military contractors are finally having a moment to celebrate.
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