Posts in Wage & Hour
Get “In Connection With” the Federal Contractor Minimum Wage

Under Executive Orders issued by President Biden, and before him, President Obama, federal contractors must pay a minimum wage to their nonexempt employees who work on or “in connection with” many federal contracts. The “in connection with” aspect of these Orders can trip up even seasoned federal contractors.

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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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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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Annualization or Effective Annual Rate of Fringe Benefits Under the Davis-Bacon Act

DOL wants to annualize fringe benefit contributions, especially pension monies, to get contractors to pay Davis-Bacon Act fringe benefits even for non-Davis-Bacon Act work. This is variously called the annualization rule or the effective annual rate calculation. But some courts have refused to enforce the DOL annualization requirment.

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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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