Lately, we seem to be constantly reminded of the necessity of accurately identifying contracts which are (or should be) covered by the Service Contract Act (SCA) (aka Service Labor Contract Standards (SCLS)) and the subsequent labor category mapping. Unfortunately, these reminders tend to come at quite a cost, not only financially but also as an extreme burden on your staff. With this in mind, we decided to share some common issues and suggestions, in hopes of encouraging you to kick off the New Year with a resolution to be proactive in your compliance efforts.
It’s that time again! This is a reminder of the Federal contractor obligations for record-keeping and reporting under the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA).
Topics: Vets 4212 Filing Season
Are you prepared for a compliance evaluation from the Office of Federal Contract Compliance Programs (OFCCP)? If you’re a government contractor or subcontractor employing at least 50 people and having a contract or subcontract of $50,000 or greater, you need to be. The OFCCP is under the umbrella of the Department of Labor and their goal is to “protect workers, promote diversity and enforce the law.” OFCCP administers the following laws, all of which are specific to government contractors:
With a Presidential Memorandum halting all proposed federal regulations that have not yet taken effect and pausing the Department of Labor’s (DOL) appeal of the nationwide injunction on the overtime rule which would double the minimum salary for exempt status, we are curious how the new administration will impact employer responsibilities, particularly those of federal contractors. While we certainly hope for some respite, we won’t speculate on what might happen, and we continue to encourage employers to be diligent in compliance with those regulations which have recently taken effect as well as those that employers have been slow to tackle.
From the signing of the Lilly Ledbetter Fair Pay Act and the creation of the National Equal Pay Task Force and throughout Obama’s administration, we have seen a consistent push for “fair pay” (viewed from the perspective of the Federal Government). Equal Employment Opportunity Commission (EEOC) Chair Jenny Yang explained that “Since the creation of the President’s Equal Pay Task Force in 2010, the EEOC has investigated tens of thousands of charges of pay discrimination, and through our enforcement efforts, we have obtained more than $85 million in monetary relief for those who have faced pay discrimination based on sex.” Of passing interest, the amount is only shown in absolute terms/dollars because in relative terms the recovery (using annualized data) is approximately .000025% of total full-time employee compensation in the United States (annual monetary relief of $17,000,000 and total annual full-time employee compensation is approximately $6,842,500,000,000). Regardless of the statistical insignificance, in relative terms, it is clear that they mean business and that they’ve only just begun--not to be confused with the 1970’s Carpenter’s Song; “We’ve Only Just Begun”.
The Fair Labor Standards Act of 1938 (FLSA), which is administered and enforced by the Wage and Hour Division (WHD) of the Department of Labor (DOL) imposes, among other things, minimum wage and overtime pay requirements. It is certainly nothing new and has been a hot topic amongst Human Resources professionals over the past months as President Obama directed the Secretary of Labor to update the regulations. With much speculation and rumblings of possible changes, all have been anxious for the impending proposed rule to be revealed.
Though multiple legislative efforts have failed in amending Title VII to include sexual orientation and gender-identity to the list of protected classes which cannot be discriminated against, President Obama’s Executive Order (EO) 13672, signed on July 21, 2014, and the subsequent guidance issued by various government agencies leaves government contractors with changes to make in this arena. Like EO 11246, Equal Employment Opportunity, issued in 1965, it impacts virtually all government contracts with a very low threshold of $10,000 or more in federal contracts or subcontracts. Exclusions are few and unaltered as currently stated in the regulations, 41 CFR 60-1.5.