President Trump revoked the Fair Pay and Safe Workplaces Executive Order 13673 on March 27, 2017, and ordered that any associated rules and regulations be rescinded. The order required federal contractors to report labor law violations at the time of contract bidding and semiannually thereafter to include: 1) civil judgements, 2) administrative merits determinations, and 3) arbitral awards including awards that are not final or are subject to court review. The rule never went into effect as a federal district court in Texas filed a preliminary injunction on October 24, 2016, the day before the rule was to go into effect. Federal contractors are relieved of a huge compliance burden, as they will be spared the time and cost of reporting labor law violations, including alleged violations, at the time of bidding and subsequently thereafter.
As a follow-up to Aronson’s webinar on Service Contract Act Compliance in Real Business Government Contractor Environments, we provided answers to several attendee questions below.
In accordance with Executive Order 13658, the minimum wage for certain Federal contractors increased to $10.20 an hour effective January 1, 2017. Generally, the increased wage rate must be paid to workers performing on or in connection with covered Federal contracts whose wages are governed by the Fair Labor Standards Act (FLSA), the Service Contract Labor Standards (SCLS), or the Davis-Bacon Act (DBA).
Covered contracts include:
Companies doing business with US tax payer dollars need to understand the government regulations governing their government contracts. They need to represent themselves correctly and take action to maintain compliance throughout the life of each contract. Company officials who don’t may receive prison sentences and may be required to forfeit millions of dollars. A massive investigation involving Internal Revenue Service-Criminal Investigation, the Employee Benefit Security Administration (EBSA), the Defense Criminal Investigative Service, the Small Business Administration-OIG, and the Air Force Office of Special Investigations uncovered a government contracting fraud scheme involving embezzlement of employee benefits and procurement fraud dating back to 2007.
As a follow-up to Aronson’s webinar on the Service Contract Act and the Impact of New Executive Orders, we provided answers to several attendee questions below.
Where can I learn more about SCA?
The Professional Services Council (PSC), in conjunction with the Department of Labor Wage & Hour Division, is holding an extensive, two-day Service Contract Act Training course on November 4-5, 2014 in Arlington, Virginia. Click here to register: PSC SCA Training
Does SCA apply if the FAR clause has been omitted from the contract?