Posts in Wage & Hour
The Truck Stops Here: DOL’s Enforcement Actions Against Fine Print

The 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.

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DOL Announces Federal Contractor Minimum Wage Rates for 2025

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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What? Eating Out Again?

Two 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.

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Sporadically Engaged and Indirect Service Employees -- Is There Some Kind of De Minimis Rule When it Comes to SCA Coverage?

Generally , 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.

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The Deviants Are Agency Actions Which Are Taken Without Securing a FAR Deviation: SCA, DBA and NLRA Additive Contractual Terms

Some 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.

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When the Service Contract Act Prevailing Wage Is Just Not Enough: 1-800-MEDICARE Becomes 1-800-GOTMONEY.

The 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.

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Blog Two: Timing of New Wage Determinations for Remote Workers – Service Contract Act (“SCA”) Telework Issues  

The timing of when to add a new Service Contract Act (“SCA”) wage determination (“WD”) to a contract for remote workers can get rather complex. It depends on the facts. And the guidance is rather sparse. Here we try to parse the rules and offer some practical guidance.

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Should Government Contractors Get Price Adjustments for State and Local Laws Mandating Higher Minimum Wages – Yes, No, Maybe?

The Civilian Board of Contract Appeals (“CBCA”) holds that a Montgomery County, MD janitorial contractor cannot recover the costs under its Federal Government contract for a local county law requiring increases of the applicable minimum wage. Is the Board right? Can there be different facts with different results?

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Is it OK to underbid an SCA Contract?

Businesses competing for federal contracts will be successful if they are able to offer high quality products and services for a reasonable price when compared with the offerings of their competitors. A recent bid protest decision issued by the Government Accountability Office offers a poignant reminder about how challenging it can be to come up with a price to perform a federal service contract.

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Artificial Intelligence vs. No Intelligence: DOL Issues New Field Assistance Bulletin (FAB) No. 2024-1, With Guidance On the Use of Artificial Intelligence in the Workplace

The Department of Labor has issued a new bulletin meant to reiterate the need for human supervision and responsibility over artificial intelligence software used in the workplace for compliance with the FLSA and other requirements.

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The Federal Enclave Doctrine – A Practical Guide to its Application

A 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.

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Don’t Defund the Police – The Number of Wage & Hour Investigators Is Getting Too Low

The 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.

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What Happened Here? DOL finds “Widespread Violations” of Government Contract Labor and Contract Violations

The 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.

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