A Maryland-based construction company required to pay “prevailing wages” under a Federal government contract recently settled for $400,000 claims that it had violated the False Claims Act (“FCA”) by failing to properly supervise lower-level contractors in the payment of prevailing wages to their workers. The case serves as a reminder that government contractors who fail to ensure compliance with wage requirements – whether under the Davis-Bacon Act (“DBA”), Service Contract Act (“SCA”), or Walsh-Healy Public Contracts Act (“PCA”) – can face significant liability. It also highlights the ongoing expansion of the federal government’s battle against procurement fraud.
Continue Reading The Growing Risks of Non-Compliance with Wage Rate Determinations

On June 18, 2014, we reported that President Obama would sign an Executive Order prohibiting federal contractors from discriminating against LGBT individuals on the basis of their sexual orientation or gender identity.  As promised, on July 21, Obama issued the Executive Order.  This presidential action amended existing Executive Order 11,246, which applies to federal contractors, by adding sexual orientation and gender identity to the list of classes protected from employment discrimination.  This move also amended existing Executive Order 11,478 by explicitly prohibiting gender identity discrimination by federal government agencies for the first time.  
Continue Reading UPDATE: President Obama Poised to Sign Executive Order Barring Discrimination Based on Sexual Orientation

The White House and the Department of Labor (DOL) released a proposed rule that would raise the minimum wage for employees under federal contracts from $7.25 to $10.10 per hour, a 39% increase.  The proposed rule implements Executive Order 13658, Establishing a Minimum Wage for Contractors, which was signed by President Obama on February 12, 2014.  That order applies to new and renegotiated contracts starting January 1, 2015.
Continue Reading DOL Publishes Rule to Raise Minimum Wage to $10.10 on Federal Contractors