The 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.
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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 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 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 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 MoreThe Department of Labor announced the approval of a settlement of a subcontractor’s Davis-Bacon violations. The subcontractor’s close brush with debarment, the cost of a post-settlement compliance monitor, and the fact that the investigation lasted nearly three years all demonstrate the value of effective compliance efforts.
Read MoreA federal enclave doctrine has emerged that precludes the application of state laws to those contracts, including state wage and hour laws, which are being performed in enclaves where only the federal government has exclusive jurisdiction. But the devil is in the details of figuring out if an enclave exists. This blog is meant to identify a process to make that determination.
Read MoreThe U.S. Department of Labor Wage & Hour Division has only about 720 investigators. Once upon a time it had over 1,000 investigators. This means that those who would cross the lines set for child labor, minimum wage, and overtime pay, along with noncompliance with Government contract wage laws, are less likely to be found or punished.
Read MoreThe Wage and Hour Division (“WHD”) of the US Department of Labor (“DOL”) announced last week that it recovered “$1.5 million dollars of back wages and damages for more than 400 workers” working for employers that had “federally funded” contracts. The announcement doesn’t convey the underlying cause of this multi-contractor compliance breakdown—the scale of which actually is extremely rare. I sure would like to know what happened here.
Read MoreThe Wage and Hour Division (“WHD”) of the US Department of Labor (“DOL”) announced last week a three-year “collaborative agreement” with a union to educate workers and identify labor law violations. Is this an unfair thumb on the scale? Hopefully not, but this agreement arguably erodes the degree of independence that should accompany the Government’s enforcement of employment laws.
Read MoreNew rules are now issued and Project Labor Agreements (“PLAs”), which are pre-hire collective bargaining agreements with one or more labor organizations that establishes the terms and conditions of employment will be mostly mandatory for federal government construction projects of $35M or more.
Read MoreInflation is yet again pushing up DOL civil money penalties assessed under the wage and hour laws.
Read MoreThe numbers tell a story about the Wage & Hour Division’s investigatory activities in 2023.
Read MoreLast week my distinguished colleague wrote about the new Davis Bacon “operation of law” rule that requires the use of a new DOL-issued contract clause. But what’s happening now? Is there a currently valid contract clause that federal Contracting Officers can modify into a contract? For now, the answer appears to be no.
Read MoreNew Davis-Bacon Act (“DBA”) regulations went into effect at the end of October 2023. Among other things, they purport to make the DBA clauses and wage determinations apply by operation of law. But they also provide for price adjustments for contractors. Exactly how it plays out is yet to be determined, but it might be prudent for the contractor to take any omitted clauses or wage determination problem slowly, and not just jump ahead into supposed compliance only to find out they have a fight to get a price adjustment.
Read MoreWe’ve been blogging about various aspects of the new Davis-Bacon rules that went into effect last month. We turn now to changes in the recordkeeping requirements applicable to all prime contractors and subcontractors.
Read MoreMany construction projects are made up of components that are fabricated at locations other than the place where a building or work is being erected. The Department of Labor’s recent revisions to the Davis-Bacon Act (“DBA”) regulations update its take on when work at a secondary site is DBA covered.
Read MoreThe Inflation Adjustment Act comes with extended tax credits, but also with extended liabilities. Owners of alternative energy projects who want to claim the extended credits need to devote resources to complying with the Davis-Bacon Act. There is no free ride.
Read MoreOn January 1, 2024, if no further injunctions are issued or appeals are decided, a new federal government contractor minimum wage as high as $17.20 will go into effect.
Read MoreDOL’s new DBRA regulations has some clarifications and guidance as to its future treatment of benefit plan administrative expenses charged by third party administrators to various DBRA and SCA H&W plans. Get ready for more enforcement actions by DOL to disallow plan expenses and for more disputes between employers and TPAs over the cost of such fees.
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