The U.S. Department of Labor Wage & Hour Division has only about 720 investigators. Once upon a time it had over 1,000 investigators. This means that those who would cross the lines set for child labor, minimum wage, and overtime pay, along with noncompliance with Government contract wage laws, are less likely to be found or punished.
Read MoreThe Wage and Hour Division (“WHD”) of the US Department of Labor (“DOL”) announced last week that it recovered “$1.5 million dollars of back wages and damages for more than 400 workers” working for employers that had “federally funded” contracts. The announcement doesn’t convey the underlying cause of this multi-contractor compliance breakdown—the scale of which actually is extremely rare. I sure would like to know what happened here.
Read MoreThe Wage and Hour Division (“WHD”) of the US Department of Labor (“DOL”) announced last week a three-year “collaborative agreement” with a union to educate workers and identify labor law violations. Is this an unfair thumb on the scale? Hopefully not, but this agreement arguably erodes the degree of independence that should accompany the Government’s enforcement of employment laws.
Read MoreIf you’re cutting a deal to work out a change order, price adjustment, or something similar - watch out for boilerplate release clauses! It’s tempting to gloss over the fine print to pin down a settlement, get paid, and move on. But, if there’s something lurking on the edges that could come up later, think carefully before you sign.
Read MoreInflation is yet again pushing up DOL civil money penalties assessed under the wage and hour laws.
Read MoreThe numbers tell a story about the Wage & Hour Division’s investigatory activities in 2023.
Read MoreThe Service Contract Act (“SCA”) Price Adjustment clause provides for certain timely notices to be given by both the Government and the contractor. This blog explores several timeliness issues which can show up as a result of late notice furnished by either the Government or the contractor.
Read MoreUse or lose leave policies are generally not permissible when it comes to Service Contract Act (“SCA”) vacation benefits.
Read MoreOn January 1, 2024, if no further injunctions are issued or appeals are decided, a new federal government contractor minimum wage as high as $17.20 will go into effect.
Read MoreHere’s some old news that bears repeating. When it comes to prices offered to the Government to perform a fixed-price service contract, GAO won’t second guess the award of a contract with low-ball prices even though it might appear there’s no way the contractor would pay the minimum wage rates required by the Service Contract Act.
Read MoreDOL’s new DBRA regulations has some clarifications and guidance as to its future treatment of benefit plan administrative expenses charged by third party administrators to various DBRA and SCA H&W plans. Get ready for more enforcement actions by DOL to disallow plan expenses and for more disputes between employers and TPAs over the cost of such fees.
Read MoreIf you furnish a qualified health care benefit to workers under Hawaii law, then you are allowed to pay a lower health and welfare (“H&W”) benefit under the Service Contract Act (“SCA”).
Read MoreA recent decision by the Armed Services Board of Contract Appeals presents a fact pattern the likes of which would rival the finest of law exams. This mess all arose out of a contracting agency’s failure to include the Service Contract Act. Read on to learn why this case should be read with caution.
Read MoreHere is a practical guide to doing research on whether federal government facilities and lands are federal enclaves such that the application of state employment laws (including state or local wage and hour laws) are barred.
Read MoreUnder the Service Contract Act (“SCA”), negotiated CBA wage rates can be lower than the prevailing wage rate, and the CBA is not automatically displaced by the higher SCA wages or benefits set forth in a prevailing wage determination.
Read MoreThe new Service Contract Act (“SCA”) health and welfare (“H&W”) rates are out and made effective to new solicitations and contracts on June 27, 2023. Except for in Hawaii, the new H&W rates are $4.57 an hour if the sick leave executive order applies, and $4.98 an hour if it doesn’t.
Read MoreExplaining how we ended up with two different names for our construction and service contract wage laws and why the Department of Labor’s naming preference is superior.
Read MoreHere are some observations on forty years of practicing wage & hour law.
Read MoreService Contract Act (“SCA“) covered fixed priced contracts generally have one of two FAR clauses for price adjustments — either FAR 52.222-43 or -44. But there are different price adjustment clauses and provisions for cost reimbursement contracts. Where the SCA provisions and the standard cost reimbursement clauses overlap is in hybrid contracting, involving both fixed price and cost reimbursement CLINS. In those circumstances the overlapping price adjustment issues can be murky.
Read MoreDOL recently announced that US Marshals arrested a New York restaurateur for failure to respond to a subpoena as part of a Fair Labor Standards Act investigation. This is the second such arrest in the last few months. As I said in my blog about the first arrest - things simply go better when employers take DOL investigations seriously.
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