When Service Contract Act (“SCA”) covered nonexempt employees work at home or an alternate work site, does the employer have to get a new wage determination (“WD”) to cover the new locale? And if that new WD has higher wages must the contractor pay the higher rate? And how is DOL enforcing the SCA for remote workers in this pandemic era? The answers are maybe and very gingerly.
Read MoreOfferors are entitled to a SCA price adjustment for increased costs incurred for vacation pay benefits during a contract renewal option period. Savvy offerors will exclude those vacation benefit costs for their bid costs in order to get a compeittive advantage. But this doesn’t work for existing employees or those hired from the predecessor contractor, who are entitled to a grant of vacation benefits in the base term of the contract.
Read MoreWhen 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.
Read MoreThe District of Columbia is allowing workers to bring a prevailing wage claim under the guise of a municipal statute, thereby eroding the rule that only DOL enforces the federal prevailing wage laws and there is no private cause of action.
Read MoreJust 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.
Read MoreAfter being frozen for two years, the SCA H&W rates were modestly adjusted upwards by DOL effective July 16, 2021.
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 MoreHere 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.
Read MoreThe following is a checklist of some best practices to follow when bidding on prevailing wage work like the Davis-Bacon Act or the Service Contract Act.
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 (“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.
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 MoreThe 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.
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 MoreThe 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.
Read MorePresident Joe Biden signed an Executive Order increasing the federal contractor minimum wage to $15.00 an hour.
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 MoreIn with the new and out with the old. Marty Walsh takes the helm at DOL and new proposed rulemaking and pull backs of the Trump Administration’s tip credit initiatives continue apace. Elections have consequences.
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.
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