Government contractor stocks have generally performed mediocre over the last 21 months and have been a losing bet in an inflationary world.
Read MoreFederal contractors who hold multi-year fixed price contracts are feeling great pressure from this year’s high rates of inflation. DoD guidance issued in May essentially stated that these contractors should consider themselves up a well-known creek without a paddle. New guidance issued earlier this month offers a glimmer of hope by providing Contracting Officers a couple of options to provide relief to struggling contractors.
Read MoreDOL allows federal contractors to take a credit for the costs of their unfunded, self insured fringe benefit plan towards their SCA fringe benefit obligation as long as the plan is approved by DOL.
Read MoreNo Davis-Bacon Act price adjustment claims are allowed if the contract has a clause that requires wage and fringe benefit escalations be priced into the option year quotes.
Read MoreUnder 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.
Read MoreThe Department of Labor expands coverage of the Service Contract Act to another traditionally uncovered contract.
Read MoreThe explanation to the disconnect in the Federal survey employment reports is that perhaps many workers are taking two full-time jobs, and getting two paychecks, while they work remotely from home. Government contract employers beware!
Read MoreOn June 23, 2022, the U.S. Department of Labor issued its annual memo that sets health and welfare (“H&W”) fringe benefit rates for Service Contract Act (“SCA”) covered contracts. Over the last few years, the rates have barely moved an inch. This year, the rates are going up by about 4%.
Read MoreDOL publishes the Android version of their Timekeeping application.
Read MoreSometimes 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.
Read MoreA recent Maryland case demonstrates how state law can supplant federal law with respect to wage and hour obligations. Federal contractors must be vigilant to avoid getting caught in this sometimes quite tangled web.
Read MoreDOL issues a proposed rule regarding the Nondisplacement of Qualified Workers Executive Order.
Read MoreRecently, DOL has published a record of employers who have been caught violating the Wage and Hour or Occupational Safety and Health Administration laws. There is now a searchable data base that allows the public to search for violators by company name.
Read MoreIf a government contractor has a bone to pick, figuring out who to complain to can feel a lot like a customer service phone tree. If you press three instead of one, you can find yourself being transferred to another department after hours of being on hold. Or you can get completely different answers depending on who you speak to.
Read MoreDOL issues proposed revisions to WD-10, a wage survey collection tool submitted by construction contractors. Get prepare to classify your own projects.
Read MoreHere are some musing for government contractors on inflation and the stock market. You are now riding the inflation tiger, and you may yet be eaten alive.
Read MoreThe Director of Defense Pricing and Contracting recently issued a memo to guide contracting officers in response to the impacts of inflation on federal contracts. Read on to find out how there’s some hope for future contracts, but little relief for contractors who hold existing fixed-price contracts.
Read MoreAdministrative Review Board interprets DOL’s de minimis standard for truck drivers working on a DBA covered worksite.
Read MoreCareful 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.
Read MoreThe refusal of the Government to pay for undisputed costs unless the contractor signs a release of all costs (disputed or not) seems heavy handed. A recent case holds that a government contractor cannot claim that the release was obtained through economic duress when litigation is an alternative.
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