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  • DOL Clarifies and Expands Leave Rights for “Non-Traditional Parents”

    • By Burton J. Fishman

    The original FMLA included an understanding that not all minors will be cared for by a biological parent and that some caregivers will not have formal rights of custody or similar certifications.  It did so by mandating leave for persons “in loco parentis,” that is, adults who provide day-to-day care and financial support for minors.

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  • Privately-Held Federal Contractors Must Report Executive Compensation

    • By: Judith E. Kramer

    On July 8, 2010, a new federal regulation went into effect that may have far-reaching implications for companies that have contracts with the federal government.  As of that date, contracting agencies must include in solicitations and contracts of at least $25,000 a clause requiring certain contractors and first-tier subcontractors to report at http://www.ccr.gov the names and total compensation of each of the five most highly compensated executives for the contractor’s or subcontractor’s preceding fiscal year. 

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  • David Fortney Named One of America’s Leading Lawyers in Labor and Employment – Chambers USA 2010

    • Fortney & Scott, LLC is pleased to announce that David S. Fortney, Esq. has been recognized in the 2010 edition of the Chambers USA ratings of Washington, DC’s top labor and employment attorneys.  Mr. Fortney was ranked by Chambers USA in Band 1, which is the highest ranking that is awarded to only five labor and employment attorneys in Washington, DC, based on extensive interviews of fellow attorneys and clients.  The Chambers USA evaluation stated that Mr. Fortney “draws praise as a leading authority on wage and hour compliance, but he also counsels clients on equal opportunity requirements, nondiscrimination regulations and workplace health and safety.”  The quality of his legal analysis is outstanding and his approach is described as “unbelievably politically astute.”

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SCA Benefit Rate Increase

By: Leslie Stout-Tabackman

The Department of Labor (“DOL”) just released its annual memorandum (dated June 9, 2010) noting a rate increase for Service Contract Act (“SCA”) Health and Welfare Fringe Benefits.  These obligations apply to federal contractors performing service contract work.  Because the SCA benefit change notice is sent to government contracting agencies (and not directly to contractors or subcontractors), we wanted to ensure that our federal contractor clients were aware of this rate increase in order to prepare for meeting their SCA fringe benefit obligations.  You can view a copy of the DOL’s memorandum, which has not yet been posted by the DOL on its website, here.

New Rate

$3.50 per hour (up from $3.35 per hour last year) (see special rate of $1.42 for Hawaii (up from $1.40 per hour last year))

Effective Date

June 22, 2010

Solicitations/Contracts Affected

  • All invitations for bids opened or other service contracts awarded on or after June 22, 2010, must include the new fringe benefit via an updated Wage Determination (“WD”).
  • For contracts beginning on or after June 22, 2010, the new fringe benefit must be included via pen and ink changes to the current WD.
  • For all other contracts (not those awarded or starting post June 22, 2010), revised WDs reflecting the new fringe benefit rate will be available at the Wage Determination OnLine website (www.wdol.gov) on or soon after June 22, 2010.  The new rate will go into effect on the anniversary date (annual, or every two years), or the option renewal/modification date of these contracts – whichever date for a particular contract triggers incorporation of a new WD by the contracting agency.

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FortneyScott Practice Tip

The obligation to pay employees the prevailing wages and benefits in compliance with the SCA requirements belongs to contractors and subcontractors, who are jointly and severally liable for any violations.  Government contractors should routinely check to determine if new WDs and fringe benefit rates affecting their contracts have been provided to them by contracting agencies (or, in the case of subcontractors, by their prime contractor), and confer with legal counsel to determine whether adjustments in compensation or benefits are required for SCA-covered employees. 

Please contact Leslie Stout-Tabackman or the FortneyScott attorney who is your principal advisor regarding this or any other SCA-related issue.
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