Posts in Service Contract Act
When Is a Federal or State Specified Fringe Benefit Unallowable Under the Prevailing Wage Laws as a Credit Towards Compliance?

Sometimes 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.

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Government Contractors: Help! Inflation's Killing Us--Government: We're Here to Help (or not)

The Director of Defense Pricing and Contracting recently issued a memo to guide contracting officers in response to the impacts of inflation on federal contracts. Read on to find out how there’s some hope for future contracts, but little relief for contractors who hold existing fixed-price contracts.

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State Fringe Benefit Requirements and the SCA and DBA Price Adjustment Clauses

Careful drafting of CBAs, particularly on service contracts, should include some attention to language expressly making any state mandated fringe benefits into a CBA contractual requirement. At least that would be prudent for a contractor looking to get a price adjustment for state mandated benefits.

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Court Holds Challenge to SCA Coverage of Cooperative Agreement Not Ripe for Appeal Due to Lack of Final Agency Action 

A U.S. District Court judge holds that a contractor had not received final agency action to allow an Administrative Procedure Act suit. Thus a challenge to DOL’s determination that the Service Contract Act applies to cooperative agreements is not ripe for appeal.

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There But for the Grace… Government Contracts Rules Lay Traps Aplenty

From time to time, I see a government contracts case that sends chills down my spine. A recent decision painfully reminds me of how the law governing our unique parcel in the vast lands of the legal world is rife with hard-to-see pools of quicksand that can trap even the most sophisticated contractors.

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DOL: We’re Hiring!

The Department of Labor announced yesterday the Wage and Hour Division plans to hire 100 investigators this year. For sure, they’ll be earnest and energized. That’s why a solid grounding in the wage and hour laws affecting the government contractor community will be a powerful tool to ensure you get a fair shake.

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Good Things Come to Those That Wait -- Contractor $15 Minimum Wage Applies to New Option Years and Not Earlier, and May Give Contractors Who Time It Right a Price Adjustment for Excess Costs

The $15 Minimum Wage Executive Order (“MW EO”) only applies on or after January 30, 2022, and then only to new contracts. It doesn’t apply to the time period worked in the prior contract under the old MW EO. For that period in 2022, all that is legally due is the $11.25 MW or any higher prevailing wage. While DOL is specifying the new $15 MW was intended to apply to hours spent performing on that new contract in 2022, that just means the new contract hours. Service and construction contractors should wait patiently for the new option year, or when the new MW EO clause is added to the contract ,and get a price adjustment for any extra costs.

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The Tide of DOL Opinion Letters Has Ebbed and There Likely Won’t Be Many More Under the Current DOL Administration. That is too bad.  

Department of Labor Wage and Hour Opinion Letters follow the ebb and flow of conservative and liberal executive administrations. When President Biden was inaugurated, we began a period where new Opinion Letters are a scarcity. This follows the practice of previous liberal administrations.

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When Your Contracting Officer Rejects an Adjustment for Base Year Labor Increases in a Service Contract Act Covered Contract, Look to the East!

The Service Contract Act price adjustment clause prohibits an adjustment for changes to the contract in the base year of performance. However, in some situations, the contractor is entitled to an adjustment through the Changes clause of their contract.

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