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Quick Hit On July 21, 2021, the Department of Labor (“DOL”) announced a proposed rule (the “Proposed Rule”) to implement President Biden’s Executive Order (the “Order”) requiring an increase of the minimum wage for certain employees of covered federal contractors and subcontractors to $15.00 per hour – except for tipped workers who must be paid $10.50 per hour – beginning January 30, 2022, with annual increases beginning in 2023 to account for inflation. With some exceptions, the requirement will apply to new contracts issued on or after January 30, 2022, or existing contracts renewed or extended on or after that date. The final rule will be issued by November 24, 2021. Key Takeaways ....
To embed, copy and paste the code into your website or blog: On July 1, 2021, OFCCP announced the release of the first Corporate Scheduling Announcement List (CSAL). The list consists of 750 Supply and Service establishment-based full compliance reviews, Corporate Management Compliance Evaluations (CMCE), Functional Affirmative Action Program (FAAP) Reviews and University Reviews. Note that the list merely notifies contractors that they will be audited in the future, which gives them time to prepare. Contractors are advised to review the CSAL (available here) to see if they have been selected for an audit. If they have been selected, contractors should begin preparing for the type of audit for which they have been selected, and consult with counsel as necessary. One great way to start the process is to attend my panel presentation “You are on the CSAL- Don’t be Caught with your Pants Down!” at the National Industry Liaison Group conference virtually or in person in ....
To embed, copy and paste the code into your website or blog: On April 27, 2021, President Biden issued an Executive Order that will increase the minimum wage for all employees of covered federal contractors and subcontractors to $15.00 per hour, with annual increases beginning in 2023 to account for inflation. The Executive Order builds upon President Obama’s 2014 Executive Order requiring federal contractors to pay employees at least $10.10 per hour. The White House expects that “hundreds of thousands of workers” will be affected by the Executive Order. A White House statement on the Executive Order is available here. The minimum wage increase does not apply immediately. Rather, it will only apply to new or renewed contracts beginning January 30, 2022. Specifically, the following types of contracts, so long as they are also governed by the Fair Labor Standards Act, Service Contract Act, or Davis-Bacon Act, will be subject to the new minimum wage: (1) procu ....