The short answer is that a company that acquires all or substantially all the assets of another company and continues its operations — providing the same services in the same locations with the same employees and equipment — may be found liable for the wage-hour liabilities of the predecessor.
Read MoreIf employers don’t coerce or “require” employee participation in wellness programs, then the time spent therein is likely not working time under the FLSA or other federal wage and hour laws.
Read MoreThe new SCA H&W benefit rates are generally $4.48 per hour on or after July 11, 2018. But for SCA-covered contracts subject to Executive Order 13706 (the “Sick Leave E.O.”), the new rate is $4.18. And for contractors doing business in Hawaii, the H&W rate may be as low as $1.91.
Read MoreAppeals centered on whether the proper of Service Contract Act (“SCA”) wage determination (“WD”) has been incorporated into the contract go to the US Department of Labor (“DOL”) and are not addressable under the Contract Disputes Act (“CDA”) process.
Read MoreDOL takes the position that “the first principal activity of the day for agents/specialists/representatives working in call centers includes starting the computer to download work instructions, computer applications, and work-related emails.” Thus, in DOL’s view, logging on and logging off tasks are compensable working time. Is DOL right? Well perhaps not, but who wants to fight it out?
Read MoreThe Contractor Minimum Wage goes up by 2.4%. It is, of course, an automatic increase mandated by President Obama Executive Order. The Trump Administration is no fan of minimum wage increases. No similar inflation adjustment happens to the FLSA.
Read MoreThe SCA and DBA both provide that direct contractor payments of plan expenses are not deemed to be bona fide fringe benefit contributions. But that truism doesn’t tell the complete story. Plan expenses paid for by the plan do not invalidate otherwise bona fide contributions made by the employer to the plan under the prevailing wage laws.
Read MoreThe time line for a SCA covered employer to reconcile the health and welfare (“H&W”) cash benefits potentially depends on the type of wage determination (“ WD”) found in the contract. There are different rules for different kinds of WDs.
Read MoreIt is well-known that the procuring agencies dislike the application of the Service Contract Act (“SCA”) to their unionized contracts because it offers too many opportunities for the contractor to game the system. If you want to game the system, here is a short primer.
Read MoreUnder the SCA, the employee gets credit for all service with the employer and with any predecessor contractor unless there has been a break in service which disrupts the continuity of employment. Determining what constitues a break in service is a fact specific inquiry.
Read MoreThe compensability of meal time periods depends on the facts as well as the jurisdiction you work in. There is a spilt amoung the circuits as to what it means to be completely relieve of duties such that no compensation is due.
Read MoreThe intelligence agencies have some “funny “special clauses for implementing the Service Contract Act which say all a contractor has to do is comply to the “maximum extent practicable”, but require the contractor to get their own SCA wage determinations, and instruct the contractor never to touch base with DOL. Is this enforceable?
Read MoreSecTek overcomes long odds to reverse a CBCA decision and after three more rulings obtains an adjustment for a CBA wage and fringe benefit increase negotiated pursuant to the Service Contract Act Price Adjustment clause.
Read MoreThe poular assumption is that employers only have to reconcile their SCA fringe bnefit plans quarterly, i.e., every three months. But like must popular delusions, that assumption can be wrong.
Read MoreHazardous duty pay differentials are called for in SCA WDs for certain kinds of explosive work, but there is little or no guidance about how to implement the requirements.
Read MoreThe Lear Siegler price adjustment case remains an often cited precedent in SCA price adjustment and omitted wage determination cases. This is a reprint of an article I wrote in The Government Contractor on my own case almost a dozen years ago.
Read MoreThis is a piece I prepared for the ThomsonReuters Year in Review Conference held in Feb. 2017 which is reprinted with their permission and summarizes the SCA events of 2016.
Read MoreEmployers may owe overtime and even fringe benefits to their highly paid but hourly consultants and experts who are sporadically engaged.
Read MoreMajor League Baseball keeps Congress busy bestowing special wage and hour perks.
Read MoreDOL announced a new pilot Payroll Audit Independent Determination (“PAID”) program, which allows self-reporting and is intended to expedite resolution of inadvertent overtime and minimum wage violations FLSA.
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