It looks likes the sponsor of the government contractor FEDX ETF I like to blog periodically about has pulled the plug. As far as I can tell the ETF is no more. I speculate it had insufficient assets to be profitable for its sponsor. What this means about Government contracting I can’t discern, except to say that as an investment idea it didn’t catch on.
Read MoreSome disputes are not meant to be litigated in court or arbitrated. One example is job classification disputes under the Service Contract Act (“SCA”) or the Davis-Bacon Act (“ DBA”). Such disputes are committed to the exclusive jurisdiction of the U.S. Department of Labor. Only DOL is supposed to decide them and then provide for administrative appeals. Don’t let your union drag you into an arbitration of job classification disputes on service and construction US government contracts.
Read MoreI suspect a word more colorful than “whoops” was said when the Air Force discovered that it had a awarded a contract to a supplier that technically was not permitted to furnish the part that was ordered. However, what followed that realization was not a whoops moment.
Read MoreJust out — a White House memorandum directing all federal contracting agencies to hire labor advisors to help coordinate with DOL and comply with the laws regarding labor and employment which pertain to federal procurements. This includes especially the Service Contract Act and the Davis-Bacon Act, but also many other labor requirements and Executive Orders.
Read MoreWith the new year comes new minimum wage rates applicable to employees who work on or in connection with many federal contracts. Consider this a courteous nudge to make sure you’re complying with the correct minimum wage requirements.
Read MoreThe Inflation Reduction Act of 2022 gives tax benefits to project owners who assure the payment of Davis-Bacon Act prevailing wages and benefits on certain energy construction projects. The devil, of course, is in the details.
Read MoreThe Biden Administration has issued an Executive Order and proposed regulations for project labor agreements which will likely get finalized and become effective in 2023. it is time for construction contractors to get prepared.
Read MoreDoD recently issued a “new” rule to implement a prohibition of confidentiality agreements that would forbid employees or subcontractors to report waste, fraud or abuse. While there’s nothing actually “new,” read on to refresh your understanding of the rule and how you can ensure that your confidentiality agreements won’t run astray.
Read MoreThis blog will serve as my final blog at Abrahams Wolf-Rodda. I have accepted a position with another law firm located in Washington D.C. in the Labor and Employment practice group. Thank you to all of the readers of my blogs. By Kirby M. Rousseau.
Read MoreThe presumption that agency officials act in good faith often excuses lackluster contract administration. In this case, the Court of Federal Claims held that, even when officials “earnestly” do their best, a lack of guidance can constitute a breach of the duty of good faith and fair dealing.
Read MoreDOL publishes a Notice on the Federal Register listing the new Federal Contractor Minimum Wage rates starting January 1, 2023.
Read MoreGovernment contractor stocks have generally performed mediocre over the last 21 months and have been a losing bet in an inflationary world.
Read MoreFederal contractors who hold multi-year fixed price contracts are feeling great pressure from this year’s high rates of inflation. DoD guidance issued in May essentially stated that these contractors should consider themselves up a well-known creek without a paddle. New guidance issued earlier this month offers a glimmer of hope by providing Contracting Officers a couple of options to provide relief to struggling contractors.
Read MoreDOL allows federal contractors to take a credit for the costs of their unfunded, self insured fringe benefit plan towards their SCA fringe benefit obligation as long as the plan is approved by DOL.
Read MoreNo Davis-Bacon Act price adjustment claims are allowed if the contract has a clause that requires wage and fringe benefit escalations be priced into the option year quotes.
Read MoreUnder Executive Orders issued by President Biden, and before him, President Obama, federal contractors must pay a minimum wage to their nonexempt employees who work on or “in connection with” many federal contracts. The “in connection with” aspect of these Orders can trip up even seasoned federal contractors.
Read MoreThe Department of Labor expands coverage of the Service Contract Act to another traditionally uncovered contract.
Read MoreThe explanation to the disconnect in the Federal survey employment reports is that perhaps many workers are taking two full-time jobs, and getting two paychecks, while they work remotely from home. Government contract employers beware!
Read MoreOn June 23, 2022, the U.S. Department of Labor issued its annual memo that sets health and welfare (“H&W”) fringe benefit rates for Service Contract Act (“SCA”) covered contracts. Over the last few years, the rates have barely moved an inch. This year, the rates are going up by about 4%.
Read MoreSometimes the wage and hour regulations cannot be taken literally. Instead, you need to figure out the regulatory intent. For example, the SCA and DBA regulations bar the employer from claiming a credit for paying social security, worker’s comp and unemployment premiums. These tax like payments are not fringe benefits. But other federal and state mandated benefit plans like Obamacare, Romneycare in Massachusetts, holidays, and leave are fringe benefits and can be credited towards compliance.
Read More