Can Federal Contractors Offset Coronavirus Leave or Avoid Paying H&W Benefits Thereon: No, Maybe, Whatever!

Under The Families First Coronavirus Response Act (“FFCRA”), employers must pay the coronavirus leave in addition to any other leave requried by the prevailing wage laws. There is no credit or offset. As to whether government contractors must also pay additional health and welfare benefits, on top of the virus leave, for the time being that ball is up in the air, awaiting DOL clarification, although prudent employers may decide to pay it nonethless in the interim given the uncertainty.

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OFCCP Issues National Interest Exemption from Certain Affirmative Action Obligations

OFCCP issued an exemption for certain new coronavirus related contracts providing “relief” from certain parts of Executive Order 11246 (EO 11246), as amended, Section 503 of the Rehabilitation Act (Section 503), as amended, and Section 4212 of the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA), as amended. Generally, contractors performing under a covered contract no longer have to abide by the sections that require affirmative action to ensure the hiring of employees without regard to their sex, sexual orientation, religion, color, race, disability status, or veteran status. However, this waiver only applies to the exempted contracts.

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Coronavirus (COVID-19) Policy and Guidance--Drinking from a Fire Hose

The COVID-19 pandemic has thrown virtually every routine out the window as the nation struggles to cope with a crisis that defies description. The routines of government contracting likewise are in a state of suspension where agencies and their contractors are struggling to find a new normal. Indeed, every day sees new guidance and directives regarding how to manage in the COVID-19 environment. On Monday (March 30), the Department of Defense released a memo that urges a reasoned approach to addressing these disruptions by making it clear that Contracting Officers are trusted and empowered to make contract adjustments to address these disruptions.

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What Me Worry -- New WHD Guidance Issued on Coronavirus Leave Requirements

The U.S. Department of Labor (“DOL”) Wage and Hour Division (“WHD”) issued new guidance and posting requirements for the coronavirus leave requirements on March 26, 2020. Earlier this week, Congress enacted legislation which requires certain employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The Families First Coronavirus Response Act (“FFCRA” or “Act”) requirements go into effect next Wednesday April 1, 2020.

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Has the Coronavirus Broken the Deadlock over Sick and Family Leave Benefit Expansion?

The Families First Coronavirus Response Act (FFCRA) bill was passed by the U.S. House of Representatives and sent to the Senate this week. The bill would allow for two weeks of fully paid sick leave and up to 10 weeks of partially paid leave (at two-thirds pay) for workers of small business employers meeting certain conditions. The leave would be financed by a tax credit.

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Timing is Everything: the Right to Recover the Increased Costs of a New CBA

When it comes to the timing of negotiating and implementing a Collective Bargaining Agreement (“CBA”), the Service Contract Act (“SCA”) can be unforgiving. Contractors must give timely notice of a newly-minted CBA if they want a price adjustment for the increased costs of SCA compliance under the CBA. A recent decision from the Armed Services Board of Contract Appeals (“ASBCA”) reminds us that there is a vital prerequisite to this general rule: the Government has its own notice obligations.

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How Often Must You Pay the Piper: Payday Frequency Requirements

How frequently do employers have to pay their workers? The answer is it depends. Some of the variables it can depend on include wheher the employer is working on a government construction contract, what state the worker is performing labor in, what is the classification of the worker (exempt or nonexempt), and how much is the worker paid.

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When Is It Too Late to Submit a Service Contract Act ("SCA") Price Adjustment Proposal?

Under the FAR SCA Price Adjustment clause, notice must be furnished to the Government within 30 days of receipt of a new wage determination to be incorporated into a contract in the option or extended period of performance. But that notice proviso is not interpreted strictly and it should not be used to bar price adjustment claims as per se untimely after the 30 day window has past.

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For 2020 CWHSSA and PCA Overtime Penalties Remain $27 a Worker a Day But Now Bite Much Harder Than In The Past

While the civil money penalty for violation of the overtime laws by federal contractors is suposed to be increased by the rate of inflation every January, this year the $27 penalty is being held steady. However, violation of the overtime laws done in prior years, but uncovered and enforced now, will still be assessed the $27 a day current penalty rather than the lesser fines in existance at the time of the violation.

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