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New Required Poster from DOL's Wage and Hour Division

The DOL's Wage and Hour Division will now require certain federal contractors to post a new poster related to $10.10 minimum wage requirements on certain federal contracts, a copy available here. Federal contractors should be aware of some key points:

•    The minimum wage increase applies to new contracts and replacements for expiring contracts beginning on  January 1, 2015;
•    Covered contracts include four major categories: 1) contracts for construction under the Davis-Bacon Act (DBA); 2) contracts for services under the Service Contract Act (SCA); 3) concession contracts, such as those providing food, lodging, automobile fuel, souvenirs, newspaper stands and recreation equipment on federal property; and 4) contracts providing services, such as child care or dry cleaning, on federal property for federal employees or the general public;
•    The poster is required for federal contractors that have FLSA-covered workers performing work in connection with a covered SCA or DBA contract, as well as those with concessions contracts or contracts offering services to federal employees or the public on federal property;
•    The $10.10 rate will be adjusted for inflation annually, beginning January 1, 2016.

 

 

Courtesy Scheduling Announcement Letters to be Sent Out by OFCCP

The OFCCP will be sending Courtesy Scheduling Announcement Letters to HR directors (or designated points of contact) at 2,500 federal contractor establishments. Contractors may confirm whether one of their establishments was mailed a CSAL by faxing a written request on company letterhead to OFCCP’s Division of Program Operations at (202) 693-1305. For more information, check out the answers to Frequently Asked Questions about CSALs at http://www.dol.gov/ofccp/regs/compliance/faqs/csalfaqs.htm.

 

DOL to Publish Final Regulations This Week regarding Minimum Wage

The Department of Labor ("DOL") announced today that it will issue final regulations to implement Executive Order 13658, "Establishing a Minimum Wage for Contractors," which was signed by President Obama on February 12, 2014. The final regulations will require the payment of $10.10 per hour to covered employees working on most government contracts.

The final regulations will be published in the Federal Register on October 7, 2014, and will take effect on January 1, 2015.  According to a Fact Sheet issued by DOL, the final rule makes clear that the Executive Order minimum wage requirement applies to all contracts for construction covered by the Davis-Bacon Act; contracts for services covered by the Service Contract Act; concessions contracts, such as contracts to furnish food, lodging, automobile fuel, souvenirs, newspaper stands, and/or recreational equipment on Federal property; and contracts to provide services, such as child care or dry cleaning, in Federal buildings for Federal employees or the general public. The final rule also sets forth the standards that contractors should apply to determine whether their workers are covered by the Executive Order, recordkeeping requirements, and where to find the required rate of pay for all workers, including tipped workers and workers with disabilities.

Once the final rule has been published, we will provide more detail about the obligations imposed on government contractors.
 

New OFCCP Scheduling Letter—Expands Federal Contractors Data Production and Recordkeeping

Update on October 1, 2014: The OFCCP has released its revised Scheduling Letter and Itemized Listing. 

On September 30, 2014, the OFCCP is scheduled to publish a notice in the Federal Register announcing that the Office of Management and Budget (OMB) has approved a revised Scheduling Letter that is used for the commencement of OFCCP compliance audits for non-construction supply or service Federal contractors.  The changes expand the data that Federal contractors must provide to the OFCCP at the beginning of an audit, in particular requiring the production of more detailed, individual employee compensation data and hours worked in response to the revised Item 11 requirements.  In addition, contractors will be required to submit personnel activity data by the five specific race and ethnicity subgroups, instead of the “minority” and “nonminority” categories currently required. Once the new Scheduling Letter is available, FortneyScott will provide more details on Federal contractors’ new obligations and the relevant deadlines.  A copy of the OFCCP’s Federal Register notice is available here.

 

New Vets Report for Federal Contractors

Changes to veteran reporting requirements were included in new regulations published by the Department of Labor’s Veterans’ Employment and Training Service (“VETS”) September 25, 2014.  These new regulations change federal contractors veteran data reporting beginning in 2015.  The new rule eliminates the “VETS-100” Report, and changes the name of the “VETS-100A” Report to the “VETS-4212” Report to reflect the statutory authority for the data collection requirement. The revised Report will no longer require federal contractors to submit protected veteran status data by individual veteran categories; instead, federal contractors will report the total number, or the aggregate number, of employees and new hires who are protected veterans. For more information on how this change may affect your organization please contact your human resources consultant at WorkPlace HR.
 
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