The Walsh-Healey Public Contracts Act (“PCA”) is perhaps the least known and understood of the wage and hour laws. This blog examines the lives of the two legislative sponsors for which the Act is eponymously named — Senator David I. Walsh and Representative Arthur D. Healey.
Read MoreHere is a summary of the requirements of the Walsh-Healey Public Contracts Act (“PCA”), the federal wage law which covers supply and manufacturing contractors. Basically, the PCA only requires the FLSA minimum wage be paid, but still imposes child labor, overtime, health and welfare, posting, and recordkeeping requirements. In the conclusion, I tell two recent WHPCA-related war stories about cases I had involving hybrid contracts.
Read MoreOrdinarily, a party that signs a CBA after bidding on a government service contract, cannot pay less than the minimum wages and benefits set forth in that CBA come the next option year. And the price adjustment they are entitled to is based not on any lower bid price, but instead on the actual increased or decreased cost between the base year pay and the new option year pay. For that reason, the ASBCA got to the right result in a recent case. Albeit, the ASBCA also oversimplified the actual workings of section 4(c) of the SCA and how new CBA becomes binding on successor contractors. If there is no new CBA negotiated, it is possible that the SCA prevailing wage rates may displace the CBA rates in the option year, a situation the ASBCA appears to have ruled out. The occurrence of this event, however, doesn’t mean the contractor will get an upward adjustment in price. Indeed, if the contractor lowers the wages, then the Government gets a downward adjustment. And if the contractor increases the wages, they don’t get an “as bid” adjustment. They just get the differential between the old and new rates actually paid.
Read MoreEmployers furnishing Service Contract Act (“SCA”) compliant plans are advised to fully pay for the benefits, rather than require employees to contribute part of the expense. That applies to medical plans and 401K plans. This is more likely to assure that the workers can be compelled to take the benefit plans and cannot demand cash out of the bona fide benefits. You can’t compel SCA covered workers to contribute their own money to the benefit plan, and if you do try to do so, you provide an opportunity for workers to opt out and demand cash fringe benefits, which will cost the employer possible additional FICA, Medicare, FUTA, SUTA, and worker’s comp. payroll taxes.
Read MoreThe President’s Executive Orders directed against large law firms which he deems to be opponents is anti-democratic and despotic. I can’t keep silent. Here are my views on the subject.
Read MoreThe $17.75 Contractor Minimum Wage Executive Order is rescinded. But the Obama-era $13.30 Contractor Minimum Wage Executive Order remains in place. That creates some confusion. It is my opinion that the workers formerly covered by the $17.75 an hour minimum wage are now covered by the $13.30 minimum wage, or any higher wage required by the prevailing wage laws or state or local government minimum wages.
Read MoreSomething tells me we are about to get an explosion of termination disputes in our field of government contracts, and that the Boards of Contract Appeals and the Courts are going to have to sort out what is fair in the way of termination costs. So don’t believe the DOGE figures on cost savings. They haven’t any idea how much the termination of government contracts for convenience is going to cost them.
Read MoreGoverning by decree using executive orders is a terrible way of regulating government procurement. Both political parties should call a truce, and stop issuing procurement related executive orders.
Read MoreIf they can dismember and close the entire foreign aid program in this manner, then government contractors have every reason to be fearful of what comes next for DOGE.
Read MoreDOL has issued a new payroll reporting form for government construction contractors performing Davis-Bacon work for recordkeeping purposes and is forcing them to certify their fringe benefits and wage deductions weekly. Employers who mess up the new weekly fringe benefit and wage deduction reporting thus can be subject to heavy sanctions -- including allegations they submitted false payrolls and/or failed to report improper wage deductions.
Read MoreUnder the Davis-Bacon Act (“DBA”), the possible right of both the prime and the subcontractor to a price adjustment, if any, occurs upon the start of option year, extension, or new phase of a construction project and is governed by the terms of their contract and subcontract. Here is some friendly guidance — read your contract carefully, especially before you bid.
Read MoreOne place for the Department of Government Efficiency to propose a reform is the overly restrictive commercial exemption to the Service Contract Act.
Read MoreTier 1 help desk work is generally considered to be nonexempt activity and covered by both the Fair Labor Standards Act (“FLSA”) and (where a federal government service contract is involved) by the Service Contract Act (“SCA”).
Read MoreThe SCA is a complex law. But here are some basic rules and issues you need to comply with.
Read MoreThere is an answer on how to conform a wage rate for team leaders under the Service Contract Act. You just how to know where to look. DOL suggests you pay them 110% of the journeyman rate.
Read MoreA service contractor loses a pension tail liability claim, which with a little planning and a small change to their collective bargaining agreement ("CBA") may have been avoidable.
Read MoreThe Government Accountability Office ("GAO") whiffed in its recent decision in the Maximus Federal Services bid protest. The contractual Labor Harmony Agreement ("LHA") clause violates the FAR neutrality mandates, and a long line of previous decisions says GAO could have stepped up and curbed this excess. It was a missed opportunity for GAO to do the right thing.
Read MoreGenerally , even small periods of time such as a few hours spent working directly on Service Contract Act ("SCA") covered contract, require payment of the prevailing wages and fringe benefits. The SCA adopts the FLSA definition of de miminis working time, which is commonly restricted by DOL to periods of time of less than 10 minutes.
Read MoreGet your name on a consequential federal statute and achieve immortality, The wage and hour world provides one of the best examples of that -- the unlikely but true history of the enactment of the Davis-Bacon Act.
Read More
