Posts in By Daniel Abrahams
Catch-22: No Contractor Price Adjustments for State Minimum Wage Increases

When bidding on and pricing US government extended term fixed price contracts, contractors need to price in the possibility that state minimum wages will exceed the SCA or DBA wage levels, and require an escalation be paid, but the contracting agency will not adjust the contract price for that occurrence.

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A Modest Proposal for Prepayment of SCA Vacation Benefits

Just what you have been waiting for all your life — here is a short policy providing for the pre-payment or advanced payment of SCA vacation benefits to new workers who otherwise would have no paid leave, particularly in their first year of employment. Please note, it remains unclear whether DOL will approve of the use of such a policy, but then you are no worse off than before.

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Don’t Be a Bag Holder: Be Proactive On Subcontractor Prevailing Wage Compliance

Here is an unofficial “form”, with some minor edits and adjustments made by us, which requires subcontractors to acknowlege their obligations with repect to the prevailing wage laws. It is no panacea or substitute to good flow down of subconract terms, but in one page it does an effective job of emphasizing the duties being imposed on the subcontractor, and thus can help avoid misunderstandings or minimize inadvertent errors.

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All Animals Are Created Equal: Application of the Service Contract Act (“SCA”) to State and Local Governments and Wage Determination Loopholes

The Service Contract Act (“SCA”) can apply to state and local governments, including public universities performing research and other government contracts. But when it comes to those public entities, they may have a loophole to get a special wage determinaton.

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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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