Government Contractors 

Gerlach Employment Law comes to the aid of government contractors and subcontractors by advising on compliance requirements. We walk clients through the steps needed to meet the laws and regulations described by the Service Contracts Act, the Davis-Bacon Act, and the Walsh-Healey Public Contracts Act. and that cover contractors and subcontractors who work under government contracts. We are able to help these clients with arbitration and litigation related to non-compliance and other complaints. 

We represent government contractors involved in investigations or litigation with the Department of Labor. This also involves the development and maintenance of affirmative action plans and compliance before the OFFCP.

Risks of Violating Contract Laws

  • Government can withhold payment for work
  • Liquidated damages may be assed per day
  • Prohibited from Federal Contracts for 3 years
  • Your business may be disbarred
  • Responsible for fines or settlements
    • Constant government auditing and oversite as a result of previous non compliance cases
    • Temporary shut downs to address compliance issues
    • Damaged reputation of your business

    What is a “Covered” Government Contractor or Subcontractor?

    Companies must comply with AA and OCCFP requirements if they are considered a covered government contractor or subcontractor. This applies to companies with 50+ employees that either have a contract worth $50,000+with the federal government or are subcontracted with a company fulfilling a $50,000+ federal contract. 

    McNamara-O’Hara Service Contract Act (SCA)
    • October 22, 1965
    • Applies to service employees
    • For government contracts over $100,00, workers must be paid for overtime hours, following FLSA overtime provisions.
    • For government contracts over $2,500, employers must pay fair wage rates
    • For government contracts of $2,500 or under, employers must pay Federal minimum wage
    • Also requires that after a contract expires, companies offer the next contract to the same employees rather than finding a new work force
    Davis-Bacon Act:
    • Passed March 3, 1931
    • Applies to governments contracts for public works, such as those for construction or repairing public building, that are over $2,000
    • Requires proper classification of workers for correct wages
    • Classification is based on the type of work not the worker experience
    • Employers must post workers rights notice and maintain laborer records
    Walsh Healey Public Contracts Act (PCA):
    • June 30th, 1936
    • For government contracts and subcontracts over $15,000
    • Covered workers must by paid minimum wage and for any overtime hours
    • Exempt employees must be paid overtime rates for work that exceeds 12 hours in a day or 56 hours in a week.
    • Prime contractors liable for violations from subcontractors
    • Included provisions relating to child labor and convicts
    Fair Labor Standards Act (FLSA)
    • June 25, 1938
    • Minimum wage, overtime pay, recordkeeping, child labor standards
    • Regulations for part-time and full-time workers
    • Payroll records must be maintained and submitted to the government
    • The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) enforces the FLSA.
    Contract Work Hours and Safety Standards Act (CWHSSA)
    • Prohibits dangerous working conditions for construction contracts
    Copeland “Anti-kickback” Act
    • Requires the correct compensation and submission of weekly records

    Government Contract Compliance

    Affirmative Action Plans (AAPs)

    Is your business compliant with affirmative action requirements? We will work with you to determine how you can best meet those regulations in your hiring and scheduling processes. We can evaluate whether or not you are complying with local, state and federal requirements.

    Office of Federal Contract Compliance Programs (OFCCP)

    Compliance is especially important when it comes to doing business with the federal government. You must  meet the requirements related to Affirmative Action and the Office of Federal Contract Compliance Programs (OFCCP). We defend employers facing complaints such as allegations of discrimination.

    Prevailing Wage Rates

    For government contracts, the DOL surveys wages in specific occupations and locations to determine what the wages will be. This hourly minimum will be used in combination with an overtime rate and fringe benefits.

    What Occupations Are These Rules For?

    Depending on the type of job, the SCA, Davis-Bacon or Walsh-Healey Act may apply to government contract work completed by laborers, mechanics, guards, watchmen, construction workers, shipbuilders and others.

    Frequently Asked Questions

    Who type of information do record-keeping regulations apply to?

    Under the SCA, for 3 years, contractors must maintain records with employee names, address, social security numbers, work classification, compensation and hours, deductions, and information on length of service.

     

    Who enforces compliance for these acts?

    The DOL may conduct investigations and the Wage and Hour division focuses on the wage an hour requirements.

    What are fringe benefts?

    This refers to benefits that employers offer to employees, partners or independent contractors. It could include medical insurance, pension plans, educational assistance, childcare reimbursement, paid holidays, or use of company lodging or vehicles.

    What is the 3-step process proposed by the ?

    (1) Any wage rate paid to a majority of workers; and if there then (2) the wage rate paid to the greatest number of workers, provided it was paid to at least 30 percent of workers, and, if there was none, then (3) the weighted average rate (federalregister.gov).

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