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Trade Agreements Act enforcement loses a couple more teeth

October 2, 2018 By Nancy Cleveland

Two recent judicial decisions involving the Trade Agreements Act (TAA) build on a trend reflecting a more favorable enforcement climate for contractors grappling with domestic preference regimes.

Earlier this year, the U.S. District Court for the District of Columbia dismissed a qui tam action that alleged fraud in connection with country of origin requirements imposed by the TAA. United States ex rel. Folliard v. Comstor Corp., 308 F.Supp.3d 56 (D.D.C. 2018) (finding the relator failed to adequately plead that the alleged TAA noncompliance was “material” to the Government’s payment decision). The decision marked a welcome early defeat of a False Claims Act case based on the enhanced materiality and scienter requirements of the Escobar decision (more here).

Two recent federal court decisions appear to extend the trend of taking some of the bite out of TAA enforcement, and potential exposure for alleged noncompliance.

Despite this welcome news, domestic preference programs remain a key legal obligation for government contractors (and an area likely to remain under scrutiny with the Administration’s professed focus on Buy American and Hire American initiatives).

Keep reading this article at: https://governmentcontractsnavigator.com/2018/09/17/trade-agreements-act-enforcement-loses-a-couple-more-teeth/

Filed Under: Contracting Tips Tagged With: Buy American, Buy American Act, enforcement, TAA, Trade Agreements Act

Orlando contractor to pay $575,000 after DOL investigation uncovers improper pay deductions

September 12, 2018 By Nancy Cleveland

Loyal Source Government Services LLC – a medical and support staff contactor based in Orlando, Florida – will pay $574,989 to 4,047 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation determined the company violated the McNamara-O’Hara Service Contract Act (SCA).

WHD investigators found Loyal Source Government Services LLC unlawfully deducted $10 per paycheck from each employee for the administration of employee health and welfare benefits.

“This investigation demonstrates the Department of Labor will enforce all applicable laws to ensure that employees receive legally required pay and benefits,” said Wage and Hour Division District Director Daniel White, in Jacksonville. “The Department’s Wage and Hour Division encourages all employers to make use of the many tools we provide to help them understand and comply with the law, and to call us for assistance.”

For more information about the SCA and other laws enforced by the Division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd/ including a search tool to use in the event a worker suspects he/she may be owed back wages.

Source: https://www.dol.gov/newsroom/releases/whd/whd20180907

Filed Under: Contracting News Tagged With: compliance, DOL, enforcement, Labor Dept., labor laws, labor rates, SCA, Service Contract Act, WHD

Don’t get burned by this summer’s OFCCP enforcement

August 27, 2014 By ei2admin

While federal contractors may have been looking forward to having a summer break from new affirmative action regulations and related enforcement activities, President Obama and the U.S. Department of Labor’s Office of Federal Contractor Compliance Programs (OFCCP) have had other ideas.

Indeed, President Obama and the OFCCP have turned up the heat on federal contractors this summer by: (1) issuing a slew of new executive orders and other regulations that exponentially increase their compliance obligations, and (2) sending out a second wave of corporate scheduling announcement letters advising of future compliance audits.

Keep reading this article at: http://californiaemploymentlaw.foxrothschild.com/wp-content/uploads/sites/9/2014/08/OFCCP_article.pdf

Filed Under: Contracting Tips Tagged With: affirmative action, audit, compensation, Davis-Bacon Act, DOL, enforcement, equal opportunity, equal pay, Executive Order, OFCCP, subcontracting

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