Posts in By Daniel Abrahams
When Does a Service Contract Act ("SCA") Dispute Get Appealed to a BCA rather than DOL?

In some disputes under the Service Contract Act (“SCA”), the contractor has to take his claims first to the US Department of Labor (“DOL”). In other circumstances, a final determination by the DOL is not required to bring a direct claim for reimbursement against the Government.

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Highly Compensated and Thus More Easily Exempted

Employees who are highly compensated at the rate of $100,000 a year just need to have one exempt duty so long as the worker’s primary duty is the performance of office or nonmanual activities. This makes for a much more relaxed test of exempt status from minimum wage, overtime and prevailing wage requirements.

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Temporary Travel Assignments and the Service Contract Act

The SCA is uncertain with respect to how to compensated a service worker who is just temporarily posted to a different locale than their home base. It has been said that contractors only have to ask for new WDs for the missing site, or pay the rate specified for a different site, if the temporarily assigned worker is going to be there for 2 months or more. Periods of time of less than 1 or perhaps 2 months are considered to be temporary postings and may not always trigger a new WD wage rate.

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Defining the "Gross" in the Gross Receipts Tax Price Adjustment

While some specific additive payroll taxes are picked up and adjusted under the Service Contract Act Price Adjustment clause, the situation with state or local Gross Receipts Taxes (“GRT”), assessed as a percentage on government service contract revenue, is fraught with uncertainties. Contractors who failed to price these costs into their proposal up front have been left holding the bag.

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Why Do Construction Workers Get Paid Weekly While Service Workers Do Not?

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.  

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FLSA Arbitral Award Is Final Triggering Contractor Right to Seek Recovery of Cost From Government

After 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. 

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Federal Enclave Doctrine -- Sometimes State Wage and Hour Claims are Barred

Sometimes 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.

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Wage Busting, Pricing of Adjustments, and the Service Contract Act Successor Contractor Rule

The 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.

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