November 22, 2019

November 22, 2019

Subscribe to Latest Legal News and Analysis

November 21, 2019

Subscribe to Latest Legal News and Analysis

November 20, 2019

Subscribe to Latest Legal News and Analysis

FAR Council Finalizes Federal Contractor Minimum Wage Rule

The FAR Council published a final rule to implement the President’s February 2014 Executive Order establishing a minimum wage for federal contractors.  The final rule adopts almost all of the provisions of last year’s interim rule, with a few changes that employers should note.

First, the final rule clarifies the timing of price adjustments.  Because the Executive Order contemplates an annual review and increase of the minimum wage to keep pace with the Consumer Price Index, contractors can request price adjustments to reflect the increased labor costs.  Under the final rule, contractors may make the request “only after the effective date of a new annual E.O. minimum wage determination published” by the Department of Labor.  In September, the Department announced that the minimum wage would increase to $10.15 per hour, effective January 1, 2016.

Second, the final rule pushes some enforcement authority down to contracting officers.  For most enforcement actions, contracting officers must receive authorization and direction from the Administrator of the Wage and Hour Division.  If, however, a contractor fails to comply with the requirement (in FAR 52.222-55(e)(2)) “to furnish payroll records,” the final rule directs the contracting officer to withhold payment until the contractor comes into compliance.

© 2019 Covington & Burling LLP

TRENDING LEGAL ANALYSIS


About this Author

Jeff Bozman, Government contracts attorney, Covington Burling
Associate

Jeff Bozman draws on his past experience as a Marine Corps officer to advise companies who do business with the United States Government. Mr. Bozman’s practice includes procurement law and public policy, with an emphasis on national security issues. He has successfully represented clients in bid protests at both the GAO and the U.S. Court of Federal Claims.

Mr. Bozman helps companies secure approval from the Committee on Foreign Investment in the United States (“CFIUS”)...

202-662-5829
Jennifer Plitsch, Litigation attorney, Covington
Partner

Jennifer Plitsch is co-chair of the firm’s Government Contracts practice group where her practice includes a wide range of contracting issues for large and small businesses in both defense and civilian contracting. Her practice involves advising clients on contract proposal, performance, and compliance questions as well as litigation, transactional and legislative issues. She has particular expertise in advising clients on intellectual property and data rights issues under the Federal Acquisition Regulations and Bayh-Dole Act, and has significant experience in negotiation and compliance under non-traditional government agreements including Other Transaction Authority agreements (OTAs), Cooperative Research and Development Agreements CRADAs, Cooperative Agreements, Grants and Small Business Innovation Research agreements.

202-662-5611
Lindsey Burke Employment Law Attorney at Covington Burling Law Firm
Partner

Lindsay Burke co-chairs the firm’s employment practice group and regularly advises U.S., international, and multinational employers on employee management issues and international HR compliance. Her U.S. practice includes advice pertaining to harassment, discrimination, leave, whistleblower, wage and hour, trade secret, and non-competition issues arising under federal and state laws, and she frequently partners with white collar colleagues to conduct internal workplace culture assessments and audits in the wake of the #MeToo movement. Her international practice focuses...

202.662.5859