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President Obama Signs Executive Order Requiring $10.10 Minimum Wage for Federal Contracts

On February 12, 2014, President Obama signed an Executive Order raising the minimum hourly wage rate paid on certain federal contracts to $10.10, beginning January 1, 2015. Further, the Executive Order raises the minimum hourly wage for tipped workers on certain federal contracts to $4.90, beginning January 1, 2015. The Secretary of Labor is directed to issue regulations by October 1, 2014 that implement these new provisions and incorporate existing definitions, procedures, remedies and enforcement processes of the Fair Labor Standards Act (“FLSA”), the Service Contract Act (“SCA”) and the Davis-Bacon Act (“DBA”).  The full text of the Executive Order is available here.  

Please stay tuned for additional developments on the Executive Order and the implementing regulations. 

 

CSALs Sent Out Today

OFCCP sent over 2,100 CSALs to the individual establishments of 856 separate federal contractors. We also understand that OFCCP will limit the number of audits for each federal contractor to 35. Be sure to watch out for the CSALs and keep in contact with your individual establishments to ensure that if they do receive a CSAL, it is directed to the appropriate internal personnel.

 

CSALs to go out next week

We have received word that the next round of CSALs is going to be sent out next week. The OFCCP had planned to send them earlier, but was delayed due to the government shutdown in October 2013. Stay tuned for more updates.

 

OMB Approves OFCCP’s New Version of the Section 503 Voluntary Self-Identification Form

Update: OFFCP has formally issued the form on its website. Please click here for the link.

The Office of Management and Budget (“OMB”) approved a modified version of U.S. Department of Labor’s Office of Federal Contract Compliance Programs’ (“OFCCP”) Section 503 Voluntary Self-Identification form that contains positive changes from the form as initially proposed by the Agency.  In direct response to feedback provided by the contractor community regarding deficiencies in the prior version of the proposed form, the approved form now includes a selection for an individual to indicate that they do not have a disability, has a place for an individual to indicate their name and the date, and correctly identifies that employers are required to ask current employees their disability status every five years. To see the form, click here.  Now that OMB has approved the new version of the form, look for the OFCCP to formally issue the document in the near future.

 

Federal Government Shutdown Affects Workplace Enforcement Agencies

As of today, October 1, the federal government is in a shut-down mode.  This means that, until an appropriation bill is enacted and signed by the President, government agencies cannot perform any functions except those that are deemed essential. There will be a temporary halt in routine investigations and audits by the workplace enforcement agencies—the Wage and Hour Division and Office of Federal Contract Compliance Programs of DOL, the Equal Employment Opportunity Commission, the Department of Justice, and the National Labor Relations Board.  The agencies will also not be able to meet court deadlines during the shut-down period, but will be granted extensions of time to file documents once the shut-down is over. Additionally, E-Verify has been temporarily shuttered as part of the government shutdown, although employers must still complete the Form I-9 no later than the third business day after begins working. If you have questions about any specific case or circumstance, please contact a FortneyScott attorney for additional guidance.

 
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