The Service Contract Act and the Gig Economy: Are the Ubers and Lyfts of the World Covered?

The relationship between gig economy businesses such as Uber and Lyft and the people who do their work has come under considerable scrutiny as state and local governments have struggled over whether their wage and hour laws should apply to gig economy workers. But what happens to gig businesses if they have federal contracts? Will their workers be entitled to prevailing wages and benefits? Well—perhaps yes.

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Is a Covid-19 Vaccination Bonus Included in the Regular Rate of Pay?

Employers who encourage employee participation in a vaccination plan through a one-time bonus, may run some wage and hour risks. There is a limited group of payments that can be excluded from the regular rate of pay. A Covdi-19 vaccination bonus isn’t one of those specifically identified payments. Since “no good deed goes unpunished” and with respect to nondiscretionary bonuses, the employer may have to worry about increasing their overtime liability for Fair Labor Standards Act (“FLSA”) covered employees if the bonus is found to be included in th eregular rate of pay. .

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The Deal's the Deal: ASBCA Rejects Claim Seeking Price Adjustment for Overseas Wage Increases

We’ve all heard the old adage that a deal’s a deal. The Armed Services Board of Contract Appeals recently demonstrated how this adage can cost a federal contractor a fair chunk of change when it comes to the cost of increasing wages owed to service contract employees—especially for work performed overseas. Bottom line - carefully determine what your contract requires for service employee wages and benefits. Then, make sure your proposal meets those requirements and ensure that you’re protected from the shock of increased costs.

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Wage and Hour Posting Requirements in the Remote Workplace

For many who are working remotely, it feels like decades since they’ve strolled down to the break room where they can view many notices required by various employment laws such as the Fair Labor Standards Act (“FLSA”), the Family and Medical Leave Act (“FMLA”), the Service Contract Act (“SCA”), and the Employee Polygraph Protection Act (“EPPA”). A recent bulletin issued by the Department of Labor provides much needed guidance about how employers may use electronic posting to fulfill their posting obligations in the remote working world.

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Do You Hear Me Now – GAO Studies Communications Problems Arising From Service Contract Act Enforcement

In October of this year, the Government Accountability Office (“GAO”) published a study titled Federal Contracting – Actions Needed to Improve Department of Labor’s Enforcement of Service Worker Wage Protections (Oct. 2020). The GAO report has offered up some interesting factual nuggets on SCA investigations along with six rather bland recommendations to improve enforcement.

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Avoiding a Bermuda Triangle: Preservation of Subcontractor Pass-Through Claims

The triangular relationship between the Government, prime contractors, and their subcontractors provides fertile ground for disputes to arise. How parties allocate the risk of losses caused by Government acts can cause a claim to disappear. The recent ASBCA decision in Appeal of JAAAT Technical Services, LLC, ASBCA No. 62373 (Oct. 26, 2020) reminds us how to prevent claims from disappearing in a contractual Bermuda Triangle.

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The Wage and Hour Grinch -- Holiday Gift Cards and the FLSA

If you want to give an employee a holiday gift card, and exclude the value from the regular rate of pay, it would be prudent not to announce the gift in advance and perhaps even make the award of the gift card conditioned upon “unique or extraordinary efforts” or for “challenging or stressful situations”, or for a “worker-of-the-month” bonus.

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Ch-ch-ch Changes? What the Transition Could Mean for Government Contracts and Wage and Hour Policy

Regardless of the ultimate outcome of the electoral process, government contractors wonder whether there will be wholesale changes for them, particularly with respect to their employment policies. Well, as with most things, the unsatisfactory answer is yes and no. Here are some examples of what might be on the horizon.

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Transcript of President Abraham Lincoln’s Second Inaugural Address (1865)

“…. insurgent agents were in the city seeking to destroy it without war -- seeking to dissolve the Union, and divide effects, by negotiation. Both parties deprecated war; but one of them would make war rather than let the nation survive; and the other would accept war rather than let it perish. And the war came.”

— Lincoln, Second Inaugural

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A Modest Wage-Hour Proposal: A Paid Day Off for Democracy

Declaring Election Day a national holiday isn’t exactly a novel idea. While the 2020 Presidential election may be the most participated U.S. election in recent memory, more can always be done to remove the obstacles faced by each voter. Accordingly, we make a modest proposal that Election Day be made a mandatory paid holiday with guaranteed time off to vote. Let’s tip a glass of cider to a new Democracy Day holiday!

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Are Part-Time Executive Trainers Exempt Learned Professionals? DOL says - Yes, but No

The Department of Labor recently issued an FLSA opinion letter that addressed whether highly educated part-time executive trainers are exempt learned professionals. The opinion provides a useful reminder that, while there are many nuances that complicate the assessment of FLSA exemptions, the analysis always requires the consideration of duties, method of payment, and the amount of pay. Hence, the answer to whether a particular employee might be exempt often may be yes—but no.

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