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Government Contractor Compliance & Regulatory Update

Category Archives: Compensation

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New Interim Rule Prohibits Federal Contractors From Retaliating Against Employees Who Discuss Compensation With Colleagues

Posted in Compensation, Federal Contractors, OFCCP

On September 30, 2016, the Department of Defense, General Services Administration, and National Aeronautics and Space Administration issued an interim rule titled “Non-Retaliation for Disclosure of Compensation Information.” The interim rule implements Executive Order 13665 (the “Order”).  The Order, which President Obama signed on April 8, 2014, prohibits federal contractors from retaliating against employees who… Continue Reading

Federal Contractor Minimum Wage Increase Announced – Changes Effective January 1, 2017

Posted in Compensation, Department of Labor

Yesterday, the Department of Labor announced an increase in the minimum wage that certain federal contractors must pay to employees.  This comes as part of a planned incremental increase in the federal contractor minimum wage implemented by President Obama’s 2014 Executive Order (the “Order”). As discussed in our previous blog post on the Order, the… Continue Reading

DOL Issues Guidance Regarding Interaction Between Affordable Care Act And Fringe Benefit Requirements Under Service Contract, Davis Bacon And Related Acts

Posted in Compensation, Department of Labor

The Davis Bacon Act and the Davis Bacon Related Acts (collectively “DBRA”) and the Service Contract Act (“SCA”) impose additional obligations related to fringe benefits and wages on covered contractors.  With the passing of the Affordable Care Act (“ACA”), there have been lingering questions as to how the mandate that Applicable Large Employers (“ALE”) provide… Continue Reading

DOL Settles Systemic Hiring and Pay Discrimination Claim With Government Contractor For Close to $2 Million

Posted in Compensation, Department of Labor, Discrimination, OFCCP

On November 19, 2015, the U.S. Department of Labor (“DOL”) Office of Federal Contract Compliance Programs (“OFCCP”) announced that it reached a settlement with nine locations of a government contractor “to remedy systemic hiring and pay discrimination violations.”  The contractor in question provides uniform and facility services products to private businesses and the federal government. The… Continue Reading

Senators Push For President Obama To Issue Executive Order Providing Federal Contractor Preference To “Model Employers”

Posted in Compensation, Federal Acquisitions

On May 15, 2015, a group of Democratic Senators sent a letter to President Obama, urging him to provide incentives to federal contractors to become what they call “model employers.” According to the letter, model employers are contractors who provide “a living wage, offer fair healthcare and retirement benefits, grant paid leave for sickness and… Continue Reading

Contractor Working On Federally-Funded Solar Project Settles Davis-Bacon Act Claims for $1.9 Million

Posted in Compensation, Department of Labor

On October 23, the Department of Labor reported that Proimtu Mmi-Nv LLC, a Nevada-based company, agreed to pay $1.9 million in back wages and fringe benefits as the result of a DOL investigation of its compliance with the Davis-Bacon Act.  Proimtu performs work at the Crescent Dunes Solar Energy Project in Tonopah, Nevada, a federally-funded… Continue Reading

OFCCP Proposes Rule Regarding Pay Transparency for Federal Contractors

Posted in Compensation, OFCCP

On Monday, the Department of Labor’s Office of Federal Contractor Compliance Programs (“OFCCP”) issued a proposed rule that would bar federal contractors from firing or otherwise retaliating against employees or applicants for discussing their pay or the pay of their co-workers.  The rule implements an executive order signed by President Obama in April, which instructed… Continue Reading

OFCCP Expected to Issue Pay Data Tool and Retaliation Proposed Rules Later this Year

Posted in Compensation, OFCCP

According to the Labor Department’s semiannual regulatory agenda, released on May 23, 2014, the Office of Federal Contract Compliance Programs (OFCCP) plans to issue proposed rules regarding federal contractor compensation practices later this year.  The rules are intended to create more transparency and combat pay discrimination in accordance with Executive Order 13665 and a presidential… Continue Reading

New York Court Strikes Down Regulations Limiting Executive Compensation and Administrative Expenses

Posted in Compensation

A New York court has held that the State’s regulatory limits on executive compensation and administrative expenses for entities that receive state funds unconstitutionally exceed proper regulatory authority.  The regulations, which implemented a 2012 executive order by Governor Andrew Cuomo and went into effect on July 1 of last year, were promulgated in substantially similar… Continue Reading

President Obama Issues Executive Order Increasing Minimum Wage For Federal Contractor Employees

Posted in Compensation, Employment Law

Yesterday, President Obama issued an Executive Order to increase the minimum wage for employees of federal contractors and subcontractors to $10.10 an hour.  President Obama announced the Order at his State of the Union address last month.  The Executive Order states that “[r]aising the pay of low-wage workers increases their morale and the productivity and… Continue Reading

President Obama Expected To Increase Minimum Wage For Federal Contractor Employees

Posted in Compensation, Employment Law

President Obama is expected to announce at his State of the Union address that he will issue an executive order to increase the minimum wage for employees of federal contractors to $10.10 an hour.  The anticipated executive order is consistent with broader efforts to increase the federal minimum wage.  In late 2013, the President and… Continue Reading

Post-Shutdown Issues Facing Government Contractors Who Employ Foreign Nationals in the United States

Posted in Compensation, Employment Law, OFCCP

Connie N. Bertram, co-head of Proskauer’s DC Labor and Employment practice and co-head of the Government Contractor Compliance and Relations Group, was interviewed by Human Resource Executive regarding the impact of the government shutdown on government contractors.  Ms. Bertram highlighted the dilemma facing contractors who received a stop-work order and who employ foreign nationals in… Continue Reading

More Practical Employment Law Issues Facing Government Contractors As The Federal Government Shutdown Continues

Posted in Compensation, Department of Labor, OFCCP

The federal government shutdown is now entering its third week.  Although there are some hopeful signs here in Washington that an agreement that will allow the federal government to reopen will be reached, it is unclear when a deal will be forged.  This political tug-of-war has left many government contractors in limbo.  Already facing stop-work… Continue Reading

Availability of Retroactive Compensation to Contractors Post-Government Shutdown

Posted in Compensation, Federal Acquisitions

Connie N. Bertram, Co-Chair of the Government Contractor Compliance Group, was quoted in an article in the Washington Post yesterday discussing the compensation of employees of contractors impacted by the government shutdown.  Ms. Bertram explained that employees of government contractors who have been furloughed as a consequence of the shutdown may not receive compensation beyond… Continue Reading

OFCCP Announced a Series of Consent Decrees Impacting Contractors Prior to the Government Shutdown

Posted in Compensation, Department of Labor, Discrimination, OFCCP

Medtronic, Inc. and Medtronic Interventional Vascular, Inc. A Department of Labor Administrative Law Judge (“ALJ”) approved a consent decree on September 16, 2013 between the Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”) and Medtronic, Inc. (“Medtronic”) to settle claims of national origin discrimination in pay.

Federal Sick Leave Law Reintroduced to Congress

Posted in Compensation, Discrimination

On March 20, 2013, Senator Tom Harkin (D-Iowa) and Representative Rosa DeLauro (D-Conn.) reintroduced the Healthy Families Act (“the Act”) to the United States Senate (S. 631) and House of Representative (bill number not yet available).  Several iterations of the Act have failed to garner sufficient support in Congress since Representative DeLauro and Senator Edward… Continue Reading

Proskauer Presents Webinar On Recent Compensation Developments

Posted in Compensation, EEOC, OFCCP

Today, Proskauer partners Larry Lorber, Connie Bertram and Leslie Silverman presented a webinar entitled “The OFCCP’s New Compensation Standards:  What Does It Mean For Federal Contractors And For Pay Equity Claims Before The EEOC And Federal Courts?”  The webinar reviewed the OFCCP’s recent Directive 307 adopting new standards for compensation reviews.  It also analyzed both… Continue Reading

New Pay Discrimination Directive Issued by OFCCP

Posted in Compensation, Discrimination, OFCCP

On February 26, 2013, OFCCP announced the rescission of two guidance documents on pay discrimination issued in 2006: Interpreting Nondiscrimination Requirements of Executive Order 11246 With Respect to Systemic Compensation Discrimination (“Compensation Standards”) and Voluntary Guidelines for Self-Evaluation of Compensation Practices for Compliance With Nondiscrimination Requirements of Executive Order 11246 With Respect to Systemic Compensation Discrimination… Continue Reading