Government Contractor Compliance & Regulatory Update

Category Archives: Department of Labor

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Practical Employment Law Issues Facing Government Contractors in the Wake of the Federal Government Shutdown

On October 4, 2013, Proskauer issued a Client Alert providing guidance to federal contractors regarding key legal questions that have arisen as a result of the government shutdown.  Attached is a link to the Client Alert.  Please be sure to check the Government Contractor Compliance & Regulatory Update or subscribe to the RSS feed for … Continue Reading

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

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.… Continue Reading

Energy Company Settles OFCCP Racial Bias Allegations

On September 27, 2013, Baltimore Gas & Electric Company (“BGE”) announced that it entered into a conciliation agreement with the Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”) to settle claims of racial bias in its hiring practices.  OFCCP did not announce the settlement prior to suspending operations due to the government shutdown. … Continue Reading

ARB Reconsiders Florida Hospital Ruling

Last week, a divided Department of Labor Administrative Review Board (“ARB”) agreed to reconsider its ruling that the Office of Federal Contract Compliance Programs (“OFCCP”) did not have jurisdiction over a federal contractor based solely on its participation in TRICARE, the Department of Defense’s managed health care program for active duty and retired military members … Continue Reading

Bill Reintroduced that Would Give Department of Labor Authority to Manage Payments of Back Wages

The Streamlining Claims Processing for Federal Contractor Employees Act (H.R. 2747) was reintroduced to the House of Representatives by Rep. Tim Walberg (R – MI) on Friday, July 19th, 2013.  If enacted, the bill would consolidate enforcement and administrative claim processing under the Davis-Bacon Act and the Contract Work Hours and Safety Standards Act with … Continue Reading

Second Circuit Reaffirms Preemptive Scope Of The Davis-Bacon Act

Last week the Second Circuit issued an opinion reaffirming that the Davis-Bacon Act preempts state law claims by workers to enforce prevailing wage rates as third-party beneficiaries to a contract.  Congress enacted the Davis-Bacon Act during the Great Depression to provide minimum wages for laborers working under federal construction contracts.  The Act requires contractors to … Continue Reading

Research Confirms OFCCP Compensation Settlements and Conciliations on the Rise

Research published by the Center for Corporate Equality (CCE), a Washington, D.C. research organization, reveals that the number of OFCCP audits resulting in a conciliation agreement has risen sharply under the Obama administration. CCE compiled information from the Labor Department’s enforcement database as well as documents obtained through Freedom of Information.  Their research revealed that, … Continue Reading

OFCCP Sets Deadline for Implementation of 2010 Census Data

On May 15, 2013, the Office of Federal Contract Compliance Programs (“OFCCP”) announced that covered federal contractors will have until January 1, 2014 to start using  2010 Census data for determining availability when preparing annual affirmative action plans.  Contractors may continue to use the “old” census data (the Census 2000 Special EEO File) for plan … Continue Reading

Federal District Court Holds that OFCCP Has Jurisdiction Over Hospitals That Provide Services to HMOs Retained by Federal Government

Earlier this week, the federal district court for the District of Columbia ruled that three hospitals providing medical services through an HMO to U.S. government employees are “subcontractors” subject to OFCCP’s jurisdiction.  The decision shows that OFCCP has successfully been able to expand the definition of “subcontractor” and hence its jurisdiction to enforce affirmative action … Continue Reading

DOL Seeks To Defend Its Data Gathering Authority

Last week, the Department of Labor moved to dismiss Frito-Lay’s lawsuit (Frito-Lay, Inc. v. Department of Labor, 3:12-cv-01747 (N.D. Tex. 2012)) seeking to block the production of employment data for an OFCCP investigation into discrimination at its Dallas facility.  The case is an important test of the scope of OFCCP’s authority to request documents from government … Continue Reading
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