There’s a new rule in town that kicks the definition of “commercial item” out of the Federal Acquisition Regulations (“FAR”) and replaces it with separate definitions for “commercial product” and “commercial service.” While this is not a substantive change, it should make life easier.
Read MoreThe Department of Labor has now issued its final rule implementing a raise in the minimum wage for workers who perform on or in connection with federal contracts. Here are some thoughts about the new regs and how the new $15 per hour rate may require contractors to devote renewed attention to whether their employees are receiving the required minimum.
Read MoreMany federal contractors are being asked to accept contract modifications to implement President Biden’s vaccine mandate. So, what will compliance look like? For now, things are a bit vague; however, we hope the roll-out of this mandate will be reasonable. Contractors should be allowed some flexibility if they’re making good-faith efforts to cajole their workforces into being fully vaccinated.
Read MoreThe evolving COVID-19 vaccine mandates for federal employees and contractor employees are a work in progress. New Executive Orders that will require near universal vaccination of employees are replacing the vaccine-or-test mandate issued mere weeks ago. Read on for more about the new requirements and the confusion that may ensue in the meantime.
Read MoreUPDATE: President Biden is expected to announce executive orders that will mandate universal vaccination for federal workers and contractor employees with no testing option. We will post an update when the expected orders are issued. Federal contractor employees who work on Government sites must comply with President Biden’s vaccine or test policy. Must contractors pay employees for their time to get tested if they refuse to get a vaccine? Must contractors foot the bill for the tests? So far, these questions are going unanswered.
Read MoreOn July 21, the Department of Labor (“DOL”) published proposed regulations that implement President Biden’s Executive Order establishing a $15 an hour minimum wage for workers who perform on or in connection with federal contracts. While this is a new rule, it’s nearly identical to the existing federal contractor minimum wage requirements. Thus, what was clear before is still clear. What wasn’t, isn’t.
Read MoreWage and Hour Opinion letters provide much-needed guidance regarding the application of various requirements of the Fair Labor Standards Act. While one can raise questions over the validity of a specific opinion, the long term value of these opinions outweighs any one decision.
Read MoreGovernment Contract claims for monetary relief under the Contract Disputes Act must demand “the payment of money in a sum certain.” Read on to consider the pitfalls that can arise when you have more than one way of framing your claim.
Read MoreMost federal workers will have tomorrow off in observance of the newly declared Juneteenth federal holiday. We previously posted a blog about the National Day of Mourning observing the death for President George H.W. Bush. While tomorrow’s celebration of freedom is so different from a day of mourning, they share the trait of being unexpected federal holidays that have an impact on federal contractors. Read on to learn more about the issues and options available when faced with an unexpected federal holiday.
Read MoreThe Service Contract Act requires federal service contractors to provide certain fringe benefits to their employees. Some contractors pay cash in lieu of providing the benefits. Since the Fair Labor Standards Act requires payment of overtime based on a regular rate of pay, there’s a question as to whether cash-in-lieu payments must be added to wages to come up with the regular rate of pay. Read on to see how the Department of Labor and several courts reach different conclusions and how contractors should weigh their options.
Read MoreThat seemingly benign boilerplate is not toothless throw-away verbiage. When negotiating a contract modification that pays a claim or resolves a dispute, consider whether there are contingencies you might be waiving. Bottom line - stop and think before you sign.
Read MoreIncreasing service contract employee wages is laudable. Likewise, there should be robust and fair enforcement to ensure adherence to applicable laws, wage rates, and benefits. However, true reform must also include sound acquisition policy that incentivizes competitive compensation and benefits for employees and simplifies the process of finding the correct wage rates under the Service Contract Act.
Read MoreCan you get debarred and lose your federal contracts for a Service Contract Act violation? In a word, yes. However, proactive contractors can minimize the consequences of an otherwise honest mistake—the commission of which is not uncommon.
Read MoreThe relationship between gig economy businesses such as Uber and Lyft and the people who do their work has come under considerable scrutiny as state and local governments have struggled over whether their wage and hour laws should apply to gig economy workers. But what happens to gig businesses if they have federal contracts? Will their workers be entitled to prevailing wages and benefits? Well—perhaps yes.
Read MoreWe’ve all heard the old adage that a deal’s a deal. The Armed Services Board of Contract Appeals recently demonstrated how this adage can cost a federal contractor a fair chunk of change when it comes to the cost of increasing wages owed to service contract employees—especially for work performed overseas. Bottom line - carefully determine what your contract requires for service employee wages and benefits. Then, make sure your proposal meets those requirements and ensure that you’re protected from the shock of increased costs.
Read MoreFor many who are working remotely, it feels like decades since they’ve strolled down to the break room where they can view many notices required by various employment laws such as the Fair Labor Standards Act (“FLSA”), the Family and Medical Leave Act (“FMLA”), the Service Contract Act (“SCA”), and the Employee Polygraph Protection Act (“EPPA”). A recent bulletin issued by the Department of Labor provides much needed guidance about how employers may use electronic posting to fulfill their posting obligations in the remote working world.
Read MoreThe canon of bid protest decisions is littered with many, many cases in which the Government rejected a proposal due to a technical glitch. A recent decision issued by the Government Accountability Office (“GAO”) demonstrates, once again, that little things can consign a proposal to the waste bin.
Read MoreThe triangular relationship between the Government, prime contractors, and their subcontractors provides fertile ground for disputes to arise. How parties allocate the risk of losses caused by Government acts can cause a claim to disappear. The recent ASBCA decision in Appeal of JAAAT Technical Services, LLC, ASBCA No. 62373 (Oct. 26, 2020) reminds us how to prevent claims from disappearing in a contractual Bermuda Triangle.
Read MoreRegardless of the ultimate outcome of the electoral process, government contractors wonder whether there will be wholesale changes for them, particularly with respect to their employment policies. Well, as with most things, the unsatisfactory answer is yes and no. Here are some examples of what might be on the horizon.
Read MoreThe Department of Labor recently issued an FLSA opinion letter that addressed whether highly educated part-time executive trainers are exempt learned professionals. The opinion provides a useful reminder that, while there are many nuances that complicate the assessment of FLSA exemptions, the analysis always requires the consideration of duties, method of payment, and the amount of pay. Hence, the answer to whether a particular employee might be exempt often may be yes—but no.
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