Posts in By Daniel Abrahams
You Can’t Always Get What You Want:  Under Service Contract Act, Emergency Contract Was Subject to Predecessor’s CBA

The award of an emergency follow-on contract to a new successor contractor doesn’t change the operation of the Service Contract Act (“SCA”) Section 4(c) succcessor contractor rule. The follow-on contract is still subject to the wages and fringe benefits set forth in the collective bargaining agreement (“CBA”) entered into by the predecessor contractor.

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DOL Is Putting Service Contract Act Fringe Benefit Plan Administrative Costs Under the Microscope 

The SCA bars contractors from allocating their own plan administrative expenses towards compliance with the prevailing H&W fringe benefit However, this doesn’t bar an employer from claiming a credit for the expenses borne by the benefit plan. This dichotmy sometimes produces disputes and misunderstandings. Lately, DOL has been eying a more aggressive stance on administrative expenses.

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The Wage and Hour Grinch -- Holiday Gift Cards and the FLSA

If you want to give an employee a holiday gift card, and exclude the value from the regular rate of pay, it would be prudent not to announce the gift in advance and perhaps even make the award of the gift card conditioned upon “unique or extraordinary efforts” or for “challenging or stressful situations”, or for a “worker-of-the-month” bonus.

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The Silly Season in Government Contracting Arrives Early—The Rush Is on to Issue Executive Orders, New Rules, and to Bring Judicial Challenges

The Trump Administration isn’t necessarily a lame duck, but it sure is acting like it by rushing employment law regulations and Executive Orders into place like this is their last chance. We have seen this show before, and it usually doesn’t end that well.

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Can I Please Have Some More, Sir -- Advancing Vacation Benefits Under the Service Contract Act

When new employees start work on a SCA covered contract, the employer faces a connundrum with respect to vacation bnefits. The employer can furnish the benefits immediately, and just pay benefits in excess of the SCA, resulting in payments above the minimum prevailing wage and impairing its right to a price adjustment the next option year. Or it can pay no vacation benefits, or just give leave without pay, and demoralize the new workers. But there is a third although relatively infrequently used course of action called an advanced or prepayment agreement or policy whereby the worker elects to receive the vacation benefit immediately on hiring, but the employer reserves the ability to get a credit for furnishing the benefit on the next anniversay date of employment.

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