Georgia Tech Procurement Assistance Center

DOL announces new compliance assistance tools to assist new and small businesses

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The U.S. Department of Labor has announced the launch of the New and Small Business Assistance and the Compliance Assistance Toolkits web pages.

These new online tools assist American small businesses and workers with simple, straightforward resources that provide critical Wage and Hour Division (WHD) information, as well as links to other resources.

The web pages were established in response to feedback received from new and small business stakeholders voicing their need for a centralized location to secure the tools and information they need to comply with federal labor laws. The web pages also provide relevant publications and answer the questions most frequently asked by new and small business owners. These tools, in conjunction with worker.gov and employer.gov, ensure greater understanding of federal requirements and provide tools to help employers find resources offered by other regulatory agencies.

In addition to these new resources, WHD recently made available compliance assistance videos that provide brief, plain-language explanations of the Fair Labor Standards Act’s (FLSA) requirements and protections. The videos provide essential information employers need to understand their obligations under the law.

In August 2018, the Office of Compliance Initiatives (OCI) launched a revamped worker.gov to provide information about workers’ rights and an all-new employer.gov to provide information about the responsibilities of job creators toward their workers.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE(487-9243).

Information is also available at https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

Source: https://www.dol.gov/newsroom/releases/whd/whd20181017

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

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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

Find Davis-Bacon in federal construction contracts, not in a supermarket

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There is hickory bacon.  There is turkey bacon.  And then there is Davis Bacon.

The first two can be found in the meat department of your local supermarket.

The last one — Davis Bacon — is found in federally-funded construction contracts.  If you’re bidding on a federal contract or subcontract, you’d better educate yourself about this requirement.

The federal Davis-Bacon Act (DBA) applies minimum prevailing wage classifications for all federally-funded or assisted construction projects.  (Note that the Federal Acquisition Regulation – the FAR – now refers to the Davis Bacon Act as “Wage Rate Requirements – Construction.”)

The U.S. Department of Labor creates wage classifications by the type of project for a specific type of worker.   (Although not the case in Georgia, also be aware of the fact that some state governments have adopted “little DBAs” requiring prevailing wages on state-funded public works projects.)

The worker classifications are crafted with broad job scopes, in order to be over-inclusive.  These classifications have drawn the ire of many private construction firms, who complain about what they consider over-payment for non-specialized labor (i.e., paying a wire runner as a journeyman electrician).  So, while many favor the DBA’s heavy wages – it can be crippling to an unprepared private firm’s profit margin.

In order to prepare, a construction professional must read and absorb the federal wage classifications that apply on their project – before bidding.  Wage classifications are prepared by state and by project, and are included in all federally-funded construction work.

If you are bidding a contract in the State of Georgia, you’ll need to check out the Georgia classifications.  For example, if you were building a non-residential structure, such as a government building, in Bibb County, you can see the applicable wage rates here.

If your Bibb County bid needs to include ironworkers to install your structural steel, you would need to bid them per hour at $24.04, plus $9.86 in fringe benefits (insurance, fringe, or even cash).  There are no real boundaries here – if a worker is involved in structural steel work, that worker is to be paid as an ironworker. If a contractor does not plan for this broad application, you’ll be facing penalties that are spelled-out under the Wage & Hour Act or Contract Work Hours and Safety Standards Act.  The penalties are stiff, providing for up to two times the amount of the unpaid or underpaid wages, plus interest.

The lesson here?  Like with all things involving government contracting, do your homework before jumping in with both feet.  To obtain assistance, check with a representative of the Georgia Tech Procurement Assistance Center (GTPAC) nearest you.  With proper preparation, you’ll be able to bid correctly, win a contract or subcontract, and then be able to bring home the real bacon.

© 2010-2017 –  Georgia Tech Procurement Assistance Center – All Rights Reserved.

Increase in 2017 Service Contract Act health & welfare rate; Lower rate for contracts covered by federal paid sick leave EO

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The U.S. Department of Labor (DOL) has released its annual memorandum with the rate increase for Service Contract Act (SCA) Health and Welfare (H&W) Fringe Benefits. The new rate of $4.41 per hour (up from the 2015-2016 rate of $4.27 per hour) is required in all government contract bids or other service contracts awarded on or after August 1, 2017.

A special rate of $1.91 per hour is set for Hawaii, which takes into account that state’s mandatory health insurance coverage. However, an employer may use this lower rate only if it actually makes contributions for employees under the Hawaii Prepaid Health Care Act.

DOL officials indicated earlier this year that the rates set for 2017 would account for contracts subject to Executive Order 13706, which applies to new contracts that result from solicitations issued on or after January 1, 2017, or that are awarded outside the solicitation process on or after that date. The EO requires covered contractors to provide employees up to 56 hours of paid leave sick leave annually.

Keep reading this article at: http://www.jdsupra.com/legalnews/increase-in-2017-service-contract-act-87128/

Federal court rules against Labor Department in wage case

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The nation’s second most powerful court ruled against the Department of Labor (DoL) Tuesday in a case challenging when construction workers are entitled to prevailing wages on public projects.

Davis BaconThe U.S. Court of Appeals for the D.C. Circuit said the workers who built CityCenterDC, a mixed-use development in the heart of the District of Columbia (D.C.), were not entitled to prevailing wages under the Davis-Beacon Act.

The federal law applies to construction contracts that cities enter into for public works projects.

In affirming the lower court’s decision, the D.C. Circuit, however, said CityCenterDC, which features upscale retail stores like Louis Vuitton, high-end restaurants, a large private law firm and luxury residences, is not a “public work.”

“To qualify as a public work, a project must possess at least one of the following two characteristics: public funding for the project’s construction or government ownership or operation of the completed facility, as with a public highway or public park,” Judge Brett Kavanaugh wrote in the court’s decision. “Here, CityCenterDC’s construction was not publicly funded and CityCenterDC is not a government-owned or government-operated facility. So CityCenterDC is not a public work.”

Keep reading this article at: http://thehill.com/regulation/court-battles/275195-federal-court-rules-against-labor-department-in-wage-case

See more details at: http://www.constructiondive.com/news/court-rules-against-dol-in-prevailing-wage-case-due-to-massive-atextual/416908/

Minimum wage for federal contractor workers to increase Jan. 1, 2016

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On February 14, 2014, President Obama issued an executive order requiring certain federal contractors and subcontractors to pay an increased hourly minimum wage as mandated by the secretary of labor, who was also to determine increases to the wage rate on an annual basis.

Dept. of LaborOn September 16, 2015, the Secretary of Labor Announced that, effective Jan. 1, 2016, new minimum wages for employees of federal contractors will be increased from $10.10 to $10.15 per hour and that the rate for tipped employees will rise from $4.90 to $5.85 per hour.

What Contracts Are Covered?

Keep reading this article at: http://www.oanow.com/news/business/article_b09cf56e-5f2b-11e5-b780-d3ebd138a752.html

PSC asks for wage updates for federal contractors

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The Professional Services Council (PSC) is looking for an update to the Services Contract Act, one that may be six years overdue.

Professional Services Council - PSCThe PSC sent an Aug. 24 letter to Department of Labor Secretary Thomas Perez, and Wage and Labor Administrator David Weil, asking for updates to the SCA’s rules for determining prevailing wage rates for federal contractors.

The wages, set by the SCA, are constructed to reflect the rates of a specific locality in which the contract work is being done. The Department of Labor updates those rates through survey data to determine the average and median wages of a locality.

Keep reading this article at: http://www.federaltimes.com/story/government/acquisition/2015/08/26/psc-asks-wage-updates-federal-contractors/32424077/

GAO: ‘Mechanical’ cost realism evaluation was improper

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An agency’s cost realism evaluation was improper because the agency “mechanically” compared an offeror’s proposed staffing to an undisclosed government estimate.

In a recent bid protest decision, the GAO held that it was improper for the agency to apply its own estimates for labor hours and costs without considering the protester’s unique technical approach.

The GAO’s decision in CFS-KBR Marianas Support Services, LLC; Fluor Federal Solutions LLC, B-410586 et al. (Jan. 2, 2015) involved a Navy procurement for base operations support services.  The solicitation contemplated the award of a cost-reimbursement contract, which was to be awarded on a “best value” basis.  Among the evaluation factors, the Navy was to consider offerors’ proposed staffing and resources.

Keep reading this article at: http://smallgovcon.com/gaobidprotests/gao-mechanical-cost-realism-evaluation-was-improper/

Contractor liable under False Claims Act for sub’s failure to pay Davis-Bacon prevailing wages

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The U.S. Court of Appeals for the Sixth Circuit recently affirmed a decision that a federal contractor violated the Federal Civil False Claims Act when its subcontractor failed to pay prevailing wages to its employees.  In United States v. Circle C Construction, L.L.C., 2012 U.S. App. LEXIS 20433 (6th Cir. 2012), the United States brought a False Claim Act suit against Circle C Construction Company, a general contractor for the U.S. Army for construction of buildings at Fort Campbell.

Circle C’s contract with the Army required payment of Davis Bacon Act prevailing wages and required that Circle C and its subcontractors submit payroll records certifying that prevailing wages were paid.  The prevailing wage rate for electricians was $19.19 per hour and fringe benefits of $3.94 per hour.  Circle C subcontracted with Phase Tech to perform electrical work on the project.  A Department of Labor investigation revealed that Phase Tech failed to pay prevailing wages.  Nevertheless, Circle C’s payroll certifications to the Army stated that the certifications were complete when in fact no Phase Tech employees who worked on the project were listed and the certifications wrongly represented that the prevailing wages were paid to all subcontract employees.

Keep reading this article at: http://www.mondaq.com/unitedstates/x/308734/Building+Construction/Contractor+Found+Liable+Under+The+Federal+False+Claims+Act+For+Subcontractors+Failure+To+Pay+Davis+Bacon+Act+Prevailing+Wages&email_access=on 

President issues order boosting minimum wage on new federal contracts

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President Obama issued an executive order Wednesday raising the minimum wage for workers under federal contracts to $10.10 per hour, starting next year.

The move fulfills a pledge Obama made in his State of the Union address last month to take action on his own to raise wages for lower-paid workers on federal projects and at government facilities.

“There are hundreds of thousands of people working under contracts with the federal government to provide services or construction who are currently making less than $10.10 an hour,” the White House said in a statement. “Some examples of the hardworking people who would see their wages go up under this executive order include nursing assistants providing care to our veterans at nursing homes, concessions workers in national parks, people serving food to our troops, and individuals with disabilities working to maintain the grounds on military bases.”

Before signing the order at the White House, Obama said, “right now, there’s a dishwasher at Randolph Air Force Base in Texas making $7.76 an hour — $7.76 an hour. There’s a fast-food worker at Andrews [Air Force Base], right down the street, making $8.91 an hour.  There’s a laundry worker at Camp Dodge in Iowa making $9.03 an hour.  Once I sign this order, starting next year, as their contracts come up, each of them and many of their fellow coworkers are going to get a raise.”

Keep reading this article at: http://www.govexec.com/contracting/2014/02/obama-issues-order-boosting-minimum-wage-contractors/78725/

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