DOL Finalizes New Independent Contractor Rule: But, Really, it’s Just the Same Old Smell Test

The Department of Labor (“DOL”) has finalized its long-awaited “new” rule that really just restores the decades-old approach to assessing whether a worker is an employee covered by the Fair Labor Standards Act or if they’re a mere independent contractor. Truly this is little more than the same old smell test that employers have lived with for ages.

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The Nondisplacement Rule is Officially on the Books—Again.

Last week, the Department of Labor published a Final Rule implementing the latest iteration of the “nondisplacement rule.” The rule (which has come and gone depending on who’s in the White House) is intended to protect federal contract service employees at risk of losing their jobs when the contract they’re working on expires. This gives them a right of first refusal to accept jobs that must be offered to them by a successor contractor.

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Howard Wolf-Rodda
Davis-Bacon: When Will Federal Contracts Catch Up with DOL's New "Operation of Law" Rule

Last week my distinguished colleague wrote about the new Davis Bacon “operation of law” rule that requires the use of a new DOL-issued contract clause. But what’s happening now? Is there a currently valid contract clause that federal Contracting Officers can modify into a contract? For now, the answer appears to be no.

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Application of the Davis-Bacon Act By “Operation of Law” Is Here

New Davis-Bacon Act (“DBA”) regulations went into effect at the end of October 2023. Among other things, they purport to make the DBA clauses and wage determinations apply by operation of law. But they also provide for price adjustments for contractors. Exactly how it plays out is yet to be determined, but it might be prudent for the contractor to take any omitted clauses or wage determination problem slowly, and not just jump ahead into supposed compliance only to find out they have a fight to get a price adjustment.

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Figure it Out: Complying with the Space Requirements of the PUMP at Work Act

Enacted in late 2022, the PUMP at Work Act expanded the right of nursing mothers to reasonable breaks and appropriate space to express breast milk in the first year of a child’s life. I recently ate at a small restaurant and wondered how it might be able to provide the space for a nursing mother. Barring truly significant hardship, my advice is to just figure it out.

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Deep in the Heart of Texas: Injunction Bars Federal Contractor Minimum Wage

Last week a Texas judge rejected President Biden’s Executive Order that requires federal contractors to pay a minimum wage when they are working on or in connection with a covered federal contract. This is the latest installment in the ongoing battle over the President’s use of Executive Orders to direct federal contractors to adopt workplace rules under the federal Procurement Act.

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How Low Can You Go? GAO Rejects Protest Alleging Below Cost Wage Rates

Here’s some old news that bears repeating. When it comes to prices offered to the Government to perform a fixed-price service contract, GAO won’t second guess the award of a contract with low-ball prices even though it might appear there’s no way the contractor would pay the minimum wage rates required by the Service Contract Act.

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Who Will Be the Bag Holder -- the TPAs or the Employers -- for the Admin Fees DOL Recently Disallowed For Davis-Bacon Act and Maybe SCA H&W plans?

DOL’s new DBRA regulations has some clarifications and guidance as to its future treatment of benefit plan administrative expenses charged by third party administrators to various DBRA and SCA H&W plans. Get ready for more enforcement actions by DOL to disallow plan expenses and for more disputes between employers and TPAs over the cost of such fees.

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