Unlike the Copeland Anti-Kickback Act, which covers most US Government construction projects, the Service Contract Act does not dictate the weekly payment of wages. So while Davis-Bacon Act covered construction workers' wages must be paid weekly, other federal laws like the SCA do not necessarily require such frequency of payment.
Read MoreAfter final arbitral award, a cost reimbursement contractor should have an opportunity to argue at the Board for the recovery the overtime backpay and other costs from the Federal government. There is no U.S. Department of Labor (“DOL”) procedures it has to exhaust first.
Read MoreSometimes federal contractors are working on goverment installations and find themselves being sued under state or local wage and hour laws. In exceptional crcumstances, these state causes of action may be barred by the federal enclave doctrine, which makes federal law supreme over certain government properties where the state has receded from jurisdiction.
Read MoreGovernment service contractors working at federal facilities that have closed down for a day of mourning should review their contracts and wage determination(s) carefully and make sure they don’t cover events, like Presidential funeral closures, and if they do, follow them to get reimbursed, if possible for the cost of the day off.
Read MoreLook for President Trump to triangulate and try to reach compromises with the new House Democratic majority on the FLSA minimum wage and infrastructure bills. This means a moderate minimum wage increase, increased Davis-Bacon Act activity, and perhaps even a a push for family leave are coming into focus in the next Congress.
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Gilbert J. Ginsburg, a giant of the government contracts/wage and hour world passed away Oct. 26, 2018. This is my personal remembrance of the impact of Gil on my life.
Read MoreThe better strategy is re-evaluating the terms of your SCA CBAs to look for items arguably not covered by the SCA — like premium overtime, call-in/reporting pay, call-back pay or expense reimbursement (such as per diems, and other compensation not for hours worked) — and renegotiate the CBA to remove them and add items that are subject to a price adjustment from the Government.
Read MoreBy changing the FLSA exemption interpretive rule from a “narrow construction” to a “fair reading” standard, the Supreme Court makes it all the more likely that employers have a better chance of prevailing in any exemption disputes.
Read MoreIt pays to carefully check the DOL regulations and, if necessary, get the advice of counsel when determining whether travel time is compensable for nonexempt staff.
Read MoreThe SCA doesn’t make the prevailing wage rate into a floor on rates in a section 4(c) unionized collective bargaining situation. The regulatory admonition that the prevailing wage floor “must be observed for any work performed on a contract subject to that determination” doesn’t apply since the contract is now subject to a section 4(c) wage determination.
Read MoreThe Wage and Hour Division (WHD) recovered a record $304 million in wages owed to workers in Fiscal Year 2018.
Read MoreThe short answer is that a company that acquires all or substantially all the assets of another company and continues its operations — providing the same services in the same locations with the same employees and equipment — may be found liable for the wage-hour liabilities of the predecessor.
Read MoreIf employers don’t coerce or “require” employee participation in wellness programs, then the time spent therein is likely not working time under the FLSA or other federal wage and hour laws.
Read MoreThe new SCA H&W benefit rates are generally $4.48 per hour on or after July 11, 2018. But for SCA-covered contracts subject to Executive Order 13706 (the “Sick Leave E.O.”), the new rate is $4.18. And for contractors doing business in Hawaii, the H&W rate may be as low as $1.91.
Read MoreAppeals centered on whether the proper of Service Contract Act (“SCA”) wage determination (“WD”) has been incorporated into the contract go to the US Department of Labor (“DOL”) and are not addressable under the Contract Disputes Act (“CDA”) process.
Read MoreDOL takes the position that “the first principal activity of the day for agents/specialists/representatives working in call centers includes starting the computer to download work instructions, computer applications, and work-related emails.” Thus, in DOL’s view, logging on and logging off tasks are compensable working time. Is DOL right? Well perhaps not, but who wants to fight it out?
Read MoreThe Contractor Minimum Wage goes up by 2.4%. It is, of course, an automatic increase mandated by President Obama Executive Order. The Trump Administration is no fan of minimum wage increases. No similar inflation adjustment happens to the FLSA.
Read MoreThe SCA and DBA both provide that direct contractor payments of plan expenses are not deemed to be bona fide fringe benefit contributions. But that truism doesn’t tell the complete story. Plan expenses paid for by the plan do not invalidate otherwise bona fide contributions made by the employer to the plan under the prevailing wage laws.
Read MoreThe time line for a SCA covered employer to reconcile the health and welfare (“H&W”) cash benefits potentially depends on the type of wage determination (“ WD”) found in the contract. There are different rules for different kinds of WDs.
Read MoreIt is well-known that the procuring agencies dislike the application of the Service Contract Act (“SCA”) to their unionized contracts because it offers too many opportunities for the contractor to game the system. If you want to game the system, here is a short primer.
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