Posts in Wage & Hour
A Modest Proposal for Prepayment of SCA Vacation Benefits

Just 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.

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DOL Issues Proposed Rule on Contractor Minimum Wages: What’s New?

On 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.

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Don’t Be a Bag Holder: Be Proactive On Subcontractor Prevailing Wage Compliance

Here 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.

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Juneteenth is here... tomorrow!

Most 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.

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All Animals Are Created Equal: Application of the Service Contract Act (“SCA”) to State and Local Governments and Wage Determination Loopholes

The 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.

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You Can’t Always Get What You Want:  Under Service Contract Act, Emergency Contract Was Subject to Predecessor’s CBA

The 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.

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DOL Is Putting Service Contract Act Fringe Benefit Plan Administrative Costs Under the Microscope 

The 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.

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