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.
Read MoreWe’ve posted hundreds of blogs over the last six years. Looking back, three out of the top 10 posts are about Service Contract Act vacation rules. For a benefit that’s all about relaxation, it’s one of the most vexing SCA requirements—so much so that I believe they’re a poster child for the cliche that no good deed goes unpunished.
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 MoreHere’s a gentle reminder. New federal contractor minimum wage rates went into effect on New Year’s Day. Federal contractors should be sure they have revisited their payrolls to verify their wage rates are where they should be. Read on for a refresher about what should be considered.
Read MoreThe Congressional Review Act (“CRA”) gives Congress a shot at nullifying executive branch regulations. Look for the Republicans to try to invoke it as we approach election day and in the next session of Congress thereafter, depending on the election outcome.
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 MoreLast week a Texas judge rejected President Biden’s Executive Order that requires federal contractors to pay a minimum wage when they are working on or in connection with a covered federal contract. This is the latest installment in the ongoing battle over the President’s use of Executive Orders to direct federal contractors to adopt workplace rules under the federal Procurement Act.
Read MoreWe have two different Contractor Minimum Wage Executive Orders. One requires a $12.15 minimum wage. The other requires a $16.20 an hour minimum wage. But the curious thing is they both use the same FAR section clause number — FAR 52.225-55. Confused.? So am I.
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 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 Biden Administration has issued an Executive Order and proposed regulations for project labor agreements which will likely get finalized and become effective in 2023. it is time for construction contractors to get prepared.
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 MoreDOL publishes a Notice on the Federal Register listing the new Federal Contractor Minimum Wage rates starting January 1, 2023.
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 MoreRecently, DOL has published a record of employers who have been caught violating the Wage and Hour or Occupational Safety and Health Administration laws. There is now a searchable data base that allows the public to search for violators by company name.
Read MoreFrom time to time, I see a government contracts case that sends chills down my spine. A recent decision painfully reminds me of how the law governing our unique parcel in the vast lands of the legal world is rife with hard-to-see pools of quicksand that can trap even the most sophisticated contractors.
Read MoreBimbo Bakeries USA Inc. (“Bimbo”) agreed to pay monies for allegedly refusing to hire women as bakers and related occupations on their government baking contracts in violation of Executive Order 11246.
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