In response to President Obama’s Executive Order earlier this year, the Department of Labor has issued a Notice of Proposed Rulemaking (NPRM) to establish standards and procedures for raising the minimum wage paid to employees of federal construction and service contractors to $10.10 per hour beginning January 1, 2015 and then increased on a yearly basis beginning January 1, 2016. Federal contractors have until July 17, 2014 to comment on the proposed regulations that could have a large impact on contractors’ operations.
Continue Reading Department of Labor Announces Proposed Rules to Raise the Minimum Wage for Federal Contract Workers; Federal Contractors Should Consider Making Their Voice Heard During the Notice and Comment Period

A recent decision by a Pennsylvania district court lends support for a growing trend of filing claims under the Federal False Claims Act based on allegations that contractors on federally funded construction projects submitted “false claims” to the U.S. government due to prevailing wage violations. In United States ex rel. International Brotherhood of Electrical Workers, Local Union No. 98 v. The Farfield Co., the electrical workers union filed a complaint in federal court alleging that the contractor had violated the False Claims Act by submitting false certified payrolls that misclassified certain workers on public works projects in the Philadelphia area. Although this type of complaint would normally fall within the exclusive jurisdiction of the U.S. Department of Labor, the judge nonetheless allowed the union’s case to proceed in court on a False Claims Act theory. With judicial recognition of this type of legal claim, not only does the DOL have the ability to investigate contractors for prevailing wage violations under the Davis-Bacon Act, but private citizens can also attack alleged violations under the False Claims Act.
Continue Reading Contractors Beware: Raising the Stakes in Davis-Bacon Compliance