DOL Investigations and New Minimum Wage – 2015

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Presented by Al Corvigno

DOL Investigations

According to the Government Contracts Enforcement Department at the US Labor Wage and Hour Division, over eight hundred investigations took place in fiscal year 2013. Seventy five percent of those resulted in violations which included retroactive wage fines totaling over thirty four million dollars and twenty three contractor debarments. Overtime violations (not paying time and one half when employees work more than 40 hours each week) and OSHA violations for unsafe practices including fatalities were at the top of the list.

Maintaining copious records is the cornerstone for violation prevention. One way to ensure your employees fully understand Service Contract Act (SCA) procedures and Fair Labor Standards (FLSA) is to have all personnel properly trained.

Al Corvigno offers a one day SCA course which covers practical training that will teach you how to apply the laws and remain in compliance. If you are interested in his course he can be reached by email at acorvigno@marallc.com.

Minimum Wage – 2015

Executive Order 13658 was signed on February 12, 2014, establishing a minimum wage for contractors. Effective January 1, 2015, the order raised the hourly minimum wage paid by contractors to workers performing on or in connection with covered federal contracts to $10.10 per hour.  The amount of the Executive Order minimum wage will be determined by the Secretary beginning January 1, 2016 and annually thereafter.

This amount will be published by the Secretary at least 90 days before the new minimum wage is to take effect and will include the following:

  • No less than the amount in effect on the date of such determination
  • Increased from such amount by the annual percentage increase in the Consumer Price Index

As required by this Executive Order, the Departments final rule incorporates existing definitions, procedures, remedies, and enforcement procedures under the FLSA, SCA, and Davis-Bacon Act.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your fringe-benefit obligations and provides your employees with valuable benefits.