While we are still in the first half of 2022, it has already been a busy year in terms of labor and employment developments for government contractors. For any companies doing work for the federal government, whether as prime contractors or as subcontractors, it can be challenging to keep up with the perpetually changing requirements, particularly when the changes occur this quickly.
These rapid-fire changes have introduced some onerous requirements with potentially very significant impacts. Just in the past few months, President Biden has issued Executive Orders (EOs) that:
- Directs an almost 50% increase in the minimum wage government contractors must pay their employees under a number of types of contracts.
- Mandates the use of union labor on large federal construction projects.
- Reinstitutes the requirement that federal contractors offer the right of first refusal to qualified service personnel who worked on predecessor contracts.