There 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.
Read More
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.
Read MoreTwo weeks ago, I blogged about the perils of classifying employees to ensure they are paid the proper wages under the Service Contract Act. Today, I dive a little deeper into the thought process that contractors should use when deciding what classifications apply to the work performed by its SCA-covered employees.
Read MoreSome changes agencies make to US Government contracts may vary existing rules and thus constitute deviations to the Federal Acquisition Regulation (“FAR”). Deviations to the FAR require approval of the FAR Council. The contracting agency is not free to implement special contract terms which deviate from the FAR without securing that approval.
Read MoreThe Department of Labor announced last week that it recovered over $1 million for workers who had been underpaid by a federal contractor because it misclassified its workers who were covered by the Service Contract Act. Getting workers properly classifed is not easy, so here’s a brief overview of how one should approach the task.
Read MoreNew SCA H&W rate increases are finally here and they are up about 7.3%. As to when they become effective, please read the blog. It is complicated.
Read MoreA Texas federal court issued a nationwide preliminary injunction that bars the U.S. Department of Labor from enforcing key elements of the updates to DOL’s Davis-Bacon Act. In so doing, the Court rolled back several of DOL’s attempts to extend DBA coverage more broadly.
Read MoreThe 1-800-MEDICARE call center contractor is being punished unfairly. A dangerous example is being made of Maximus. Its contract is being terminated. A new solicitation is being issued. It will have a “labor harmony requirement“ which will force the winning offeror to essentially accede to the demands of the union. That is not how the procurement system is supposed to work.
Read MoreLast week, the Supreme Court killed Chevron deference. Depending on your perspective, you either jumped for joy or you jumped off a bridge. To my mind, neither reaction makes a lot of sense.
Read MoreUnder the Inflation Reduction Act of 2022 (“IRA”), taxpayers may obtain enhanced tax benefits in connection with certain clean energy projects so long as they they (or their contractors) pay prevailing wages, including fringe benefits, to all laborers and mechanics who are working on a project. So what are the prevailing wage and fringe benefits rates? What happens if you can’t find a rate?
Read More