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Federal contractor paid sick leave regulations finalized

October 11, 2016 By Andrew Smith

paid-sick-leave-regulations-oct-2016The Labor Department’s Wage & Hour Division (WHD) has released final regulations implementing mandatory paid sick leave for employees working on federal service, construction, and concessions contracts.

The costs are likely to come both from the paid sick leave itself (a maximum of seven days per year) and from the layers of complexity on top of contractors’ existing compliance obligations with respect to these types of contracts.

The regulations overlap with WHD’s responsibility for oversight of the Service Contract Labor Standards (commonly known as the Service Contract Act, or SCA), which is already a complicated compliance undertaking for employers.

Keep reading this article to see a summary of the highlights of the final regulations and flag issues for contractors to consider before the regulations take effect in January 2017: https://www.insidegovernmentcontracts.com/2016/10/paid-sick-leave-final-regulations-released/

Filed Under: Contracting News Tagged With: DOL, federal contracting, federal contractors, federal contracts, Labor Dept., SCA, Service Contract Act, Service Contract Labor Standards, sick leave, subcontracting, Wage & Hour Division, wage rates, WHD

Minimum wage for federal contractors updated; paid sick leave rule coming

September 28, 2016 By Andrew Smith

DOLThe U.S. Department of Labor (DOL) has published the minimum wage rate to be paid to workers performing on or in connection with federal contracts covered by Executive Order 13658, Establishing a Minimum Wage for Contractors.  Beginning January 1, 2017, federal contractors must pay covered workers at least $10.20 per hour. In addition, covered tipped employees performing work on or in connection with covered federal contracts must be paid a cash wage of at least $6.80 per hour.

The Executive Order was originally signed February 12, 2014, and it permits the Secretary of Labor to adjust this amount each year.   The notice and an updated Worker Rights poster are available here.

Meanwhile, the rule effectuating Executive Order 13706, which requires certain federal contractors and subcontractors to provide their workers with up to seven days of paid sick leave annually, has completed the Office of Management and Budget (OMB) review process, according to Politico.

Under the rule as proposed, employees may use paid sick days for themselves, for a sick family member, or for absences related to sexual assault, domestic abuse, or stalking.

The Executive Order requires DOL to publish a final rule implementing the Order by September 30, 2016.

Filed Under: Contracting News Tagged With: DOL, Executive Order, federal contracting, federal contractors, federal contracts, labor laws, minimum wage, OMB, sick leave

A sobering take on government contractors

September 14, 2016 By Andrew Smith

failures-of-govt-contractors-09-2016I recently had a chance to hear a small informal presentation by an executive with decades of high-level industry experience in the government contracting market, and who is very respected in the community. His remarks were sobering, and I took a chance to follow up with him after his presentation to get more meat on the bones of his discussion.

He started his presentation by asserted that no traditional government contractors had established any position to speak of in the market for cloud computing, arguably the biggest tech management shift of the past decade. Instead, Amazon Web Services, with no presence in the federal market, stole the market from under their noses. Very few government contractors had even explored entering this market.

Why, I asked? “Government contractors don’t think that way,” the executive replied. “They are very focused on government RFPs, responding to things the government puts out. That keeps them busy. But it makes them very unlike Silicon Valley companies and venture capitalists that are constantly scanning the market for new tech trends and developments. When Amazon concluded there was a potential huge market in cloud computing, they poured huge amounts of their own money into developing an infrastructure. Government contractors don’t think that way either. They don’t want to risk large amounts of their own money.”

Keep reading this article at: https://fcw.com/blogs/lectern/2016/09/kelman-contractor-outlook.aspx

Filed Under: Contracting Tips Tagged With: cloud, federal contractors, innovation, Internet

Obama pushes contractors to be greener, more worker-friendly

August 29, 2016 By Andrew Smith

Dept. of LaborThe Obama administration has finalized plans to bring more scrutiny to potential federal contractors’ histories of violating labor laws, releasing twin final regulations that will publish Thursday to implement a 2014 executive order.

A final rule from the Defense Department, General Services Administration and NASA, and final guidance from the Labor Department, will implement President Obama’s Fair Pay and Safe Workplaces order to boost transparency of contractors’ compliance with labor laws. It will require agencies’ contracting officers to give greater consideration to such violations.

The rule will go into effect Oct. 25 with its provisions phased in over the next two years. Labor estimated in 2014 the order would affect 24,000 businesses employing 28 million workers. In its final rule, the administration estimated contractors would spend $458 million complying with the new regulations in its first year, while the government would spend an additional $16 million.

Keep reading this article at: http://www.govexec.com/contracting/2016/08/obama-pushes-contractors-be-greener-more-worker-friendly/131020/

Filed Under: Contracting News Tagged With: contractor personnel, DOL, Fair Pay and Safe Workplaces, FAR, federal contractors, Labor Dept., labor laws

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