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Government Contracts Monitor

Labor and Employment

NLRB Posting Rule Is Dead, But Federal Contractors Still Have A FAR Obligation To Post

On January 6, 2014, the National Labor Relations Board (“NLRB”) announced that it “has decided not to seek Supreme Court review of two U.S. Court of Appeals decisions invalidating the NLRB’s Notice Posting Rule, which would have required most private sector employers to post a notice of employee rights in the workplace.”  The NLRB’s decision leaves intact the appellate rulings in …

How Can Labor Rates From The Washington DC Area Be The “Prevailing Wage” For Davis Bacon Wage Determinations Covering Newport News, Virginia?

The answer: because the Wage and Hour Division says so. In what could be construed as a deliberate attempt to over-inflate wage rates for Davis Bacon Act (“DBA”) wage determinations, the Department of Labor’s Administrative Review Board (“ARB”) – in Coalition for Chesapeake Housing Development, ARB No. 12-010 (Admin. Rev. Bd. Sept. 25, 2013) - recently approved the use of “super groups” of…

Post-Employment Restrictions Ensnare Former FBI Official

In a recent case, a former Assistant Director of the FBI’s Criminal Investigative Division pled guilty to making prohibited post-employment contacts with government officials after he was hired as a consultant for a company under investigation by the FBI. In United States v. Kenneth Kaiser, No. 13-CR-10264, U.S. District Court for the District of Massachusetts, Mr. Kaiser pled guilty to one count…

New OFCCP Regulations Change the Landscape for Federal Contractors Regarding Persons with Disabilities and Veterans

The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”) recently updated its regulations regarding individuals with disabilities and veterans (41 C.F.R. Parts 60-741 and 60-300).  See 78 Fed. Reg. 58614; 78 Fed. Reg. 58682.  The new regulations take effect on March 24, 2014.  There are several items of note in these new regulations that will…

Short Takes

After a long lull, it appears that the regulatory agenda of the Office of Federal Contract Compliance Programs (OFCCP) is back in full swing.  According to the Office of Management and Budget (OMB), the OFCCP recently submitted new affirmative action final rules for veterans and for persons with disabilities to OMB for approval and ultimate publication.  The affirmative action rules…

Executive Compensation Benchmark Applies To Most Contractor Employees

In a series of regulatory actions, the limit on allowable costs for compensation of most contractor employees has been limited to the Executive Compensation Benchmark, a level of allowable compensation traditionally applied only to senior executives.

Previously, the Office of Federal Procurement Policy set a $763,029 cap for allowable costs incurred after January 1, 2011 related to senior…

Department of Labor’s New Guidance On the Davis-Bacon Act

Earlier this Spring, the Department of Labor’s Wage and Hour Division (“WHD”) issued All Agency Memorandum Number 213 on the Davis Bacon Act announcing a change in how agencies should determine wage rates for additional classifications that are conformed to an existing wage determination.

In the past, the Wage and Hour Division generally approved proposed wages for a conformed skilled craft when…

Stay Tuned: We May Soon Know More about a Contracting Officer’s Duty to Provide CBA Information to Offerors under the Service Contract Act

While it failed to fully resolve the matter at hand, the recent decision in CAE USA, Inc., ASBCA No. 58006 (May 23, 2013), promises a future answer to the question as to whether a Contracting Officer must supply not only the predecessor contractor’s collective bargaining agreement (CBA), but also full information as to the application and accrual of wages and fringe benefits.

The case involved an…

Employers Beware: Department of Labor Geared Up For Enforcement

Over the last several years, the U.S. Department of Labor’s Wage and Hour Division (“WHD”) has become much more aggressive in how it investigates and prosecutes worker misclassification, Service Contract Act (“SCA”), Davis-Bacon Act (“DBA”), and Fair Labor Standards Act (“FLSA”) issues. Government contractors, as well as private sector employers without government contracts, should take note of…

Nondisplacement of Qualified Workers Under Service Contracts: One of President Obama’s First Executive Orders Finally Gets Teeth

As we reported previously, one of the first Executive Orders issued after President Obama took office in 2009 related to a contractor’s or subcontractor’s ability to hire new employees when a contract to provide services to the Federal Government expires and a new contract for the same services is awarded to a different contractor.  Executive Order 13495, Nondisplacement of Qualified…

WARN Notices and Sequestration

Over the last several months and right up through the recent election, there has been much public discussion about possible sequestration and its automatic and severe budget cuts to defense and domestic federal spending that are supposed to take effect January 2, 2013.  Given the uncertainty surrounding these billions in potential federal budget cuts and their possible effect on large…

 

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