Overview:
- Biden Administration signs Executive Order to Increase Minimum Wage for Federal Contractors to $15/hour
- I-9 Physical Inspection eased again until May 31, 2021
- OFCCP – Focused Reviews canceled
- OFCCP updated the 2021 Annual Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) hiring benchmark
- Annual AAP Certification – Will OFCCP require this soon?
- Biden’s American Rescue Plan includes new COBRA subsidy requirement for most employers
- On April 15, 2021, the House passed the Paycheck Fairness Act (H.R. 7)
Details:
- Biden Administration signs Executive Order to Increase Minimum Wage for Federal Contractors to $15/hour. On April 27, 2021, President Biden signed an Executive Order requiring federal contractors and subcontractors to pay their employees a minimum of $15/hour beginning on January 30, 2022 for new contract solicitations. By March 30, 2022, all agencies will need to include this increased minimum wage requirement in existing contracts as well at such time that the parties exercise their option to extend the contracts. The EO references contracts covered by the Service Contract Act and the Davis-Bacon Act, and provides that it “shall apply only to contracts or contract-like instruments at the thresholds specified in those statutes. Where workers’ wages are governed by the Fair Labor Standards Act of 1938, this order shall apply only to procurement contracts or contract-like instruments that exceed the micro-purchase threshold, as defined in 41 U.S.C. 1902(a), unless expressly made subject to this order pursuant to regulations or actions taken under section 4 of this order.” You may access the full text of the Order here. Our team will provide more details and guidance on this Executive Order as such information becomes available.
- I-9 Physical Inspection eased again until May 31, 2021 - The Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) announced an extension of the flexibility in complying with requirements related to Form I-9, Employment Eligibility Verification, due to COVID-19.This temporary guidance expired March 31, but due to ongoing precautions related to COVID-19, DHS has extended the I-9 flexibility policy until May 31, 2021. This flexibility only applies to employers and workplaces that are operating remotely. See the original news release from March 23, 2020 for more information on how to obtain, remotely inspect, and retain copies of the identity and employment eligibility documents to complete Section 2 of Form I-9. Please also consult ICE's guidance for clarification on this provision, E-Verify participants who meet the criteria and choose the remote inspection option should continue to follow current guidance and create cases for their new hires within three business days from the date of hire. Please see COVID-19 webpage for more information.
- OFCCP – Focused Reviews canceled - OFCCP recently amended its Supply and Service Scheduling List by removing all establishments selected to receive focused reviews and compliance checks. The list now includes approximately 500 establishments total scheduled for reviews, down from the original 2,250 establishments that were named in the FY2020 CSAL. The type of reviews remaining in the CSAL are Establishment Reviews, Functional Affirmative Action Program (FAAP) evaluations and Corporate Management Compliance Evaluations (CMCE). OFCCP FAQ states that establishments that have compliance checks or focused reviews in progress from prior lists will still continue as scheduled. Construction Compliance Checks will also proceed as planned with no changes.
- OFCCP updated the 2021 Annual Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) hiring benchmark on the VEVRAA Hiring Benchmark Database. Effective on March 31, 2021, the new benchmark is 5.6%, down from 5.9%
- Annual AAP Certification - Will OFCCP require this soon? OFCCP’s September 2020 Notice sought approval for annual certification. If approved, contractors will be required to upload some portion of their AAPs annually for Agency review. OFCCP recently took one step closer to requiring annual AAP compliance verification. A landing page announcing the agency’s web-based interface is coming soon. There are three options currently under consideration for certification. Regardless of which proposal is accepted, it remains critical - even more so once this verification is required - that you complete your affirmative action plans in a timely manner. While details surrounding these requirements are still unknown, it is imperative that Federal contractors and subcontractors are positioned to certify soon.
- Biden’s American Rescue Plan includes new COBRA subsidy requirement for most employers. As we mentioned in last month’s Huddle, Biden signed the “American Rescue Plan of 2021” in March and, among other things this Act provides for a 100% COBRA subsidy for up to six months from April 1 through September 30, 2021, for any individual who lost health coverage because of an involuntary termination or involuntary reduction in hours. In addition, the Rescue Act provides these individuals a “second chance” to make their COBRA elections in light of the subsidy, even if they let their coverage lapse. The subsidy is realized through employers. Employers, plan sponsors, etc., then offset the COBRA costs by claiming a credit against Medicare taxes. Employers will need to determine which individuals/dependents lost health plan coverage on or after November 1, 2019, due to an involuntary termination of employment or a reduction in hours and send a notice to each of the affected individuals (and their covered family members) by May 31, 2021. For more information see - COBRA Premium Assistance under the American Rescue Plan Act of 2021 FAQs. Access the Model General Notice and COBRA Continuation Coverage Election Notice here: MS Word | PDF and the Model Notice in Connection with Extended Election Period here: MS Word | PDF
- On April 15, 2021, the House passed the Paycheck Fairness Act (H.R. 7), which is designed to strengthen the Equal Pay Act of 1963, help eliminate the gender wage gap, and guarantee that women can challenge pay discrimination and address wage discrimination based on sex, defined to include sex stereotypes, pregnancy, sexual orientation, gender identity, and sex characteristics. A similar bill cleared the House in the last Congress on March 27, 2019 but never advanced in the Senate, so it remains to be seen whether this one will do so either. We will keep you posted on its progress.
Sheri joined Redstone Government Consulting, Inc. in December 2012 as a Human Resources Consultant. She provides HR consulting services to our customers on a wide range of issues, from specific projects to an ongoing outsourced solution of the human resources function. Sheri has two decades of experience in providing a comprehensive assessment of all areas of HR, including establishing and implementing policies and practices, contract transition efforts/onboarding, and investigations. Sheri’s experience covers a broad spectrum of compensation planning and analysis for total compensation projects, reasonableness assessments including executive compensation, compensation philosophy development, total reward strategies, benefits analysis, market pay and pay equity evaluations. She regularly supports clients with the analysis and mapping of labor categories and the preparation and analysis of wage calculations and supports clients in pricing disputes with DCAA. Sheri has a wealth of experience in navigating the many compliance challenges associated with Service Contract Act and Davis Bacon Act. She has been a valuable resource to our clients in all these areas. She stays abreast of the various requirements of the Department of Labor and, of great importance to government contractors, the Office of Federal Contract Compliance Programs, as well as other federal and state regulations impacting human resources. Professional Experience Prior to joining Redstone Government Consulting, Inc., Sheri served in various roles in the Human Resources arena. While employed by a mid-size government contractor she assisted with database development, recruiting, affirmative action planning and contract proposals. Sheri later became an Employment Specialist with one of the largest employers in Huntsville, where she assisted and led managers in the interpretation and documentation of the progressive disciplinary process, conducted employee investigations and allegations of discrimination, sexual harassment, wrongful discharge and employee disputes, conducted unemployment hearings and conducted new employee orientation. Sheri developed and presented management training, administered facility compensation plan, monitored staffing budgets and wrote job descriptions and handbook revisions.
About Redstone GCI
Redstone GCI is a consulting firm focused on fulfilling the needs of government contractors in all areas of compliance. With a singular mission to help contractors through the multiple layers of “red tape,” we allow contractors to focus on what they do best – support their mission with the U.S. Government. We are home to a group of consultants made up of GovCon industry professionals, CPAs, attorneys, and retired government audit and acquisition professionals.
Our focus and knowledge of audit and compliance functions administered by DCAA and DCMA will always be at the heart of what we do. However, for the past decade, we’ve strategically grown to support other areas of the government contractor back-office with that same level of focus and expertise. We’ve added expertise in contracts management, subcontract administration, proposal pricing, various software systems, HR and employment law, property administration, manufacturing, data analytics/reporting, Grant specialists, M&A, and many other areas. When we see a trend in the needs of contractors, we act to ensure we can provide the best expertise in the market to fulfill those needs.
One thing our clients can be certain of is that with the Redstone GCI Team in your corner, there is no problem too big and no issue too technical for our team to tackle.
Topics:
HR Huddle
