Labor & Employment Issues Affecting Government Contractors

U.S. government contractors and subcontractors face unique legal and business challenges. Government contractors must not only operate within the constraints of standard employment statutes, but also follow the law under an additional layer of scrutiny.

Our labor and employment team helps government contractors minimize risk and uncertainty—regularly assisting them in maintaining compliance with regulations specific to winning and keeping government contracts, including:

  • Laws administered by the Office of Federal Contract Compliance Programs (OFCCP).
  • Standards to meet the requirements of prevailing wage laws, including the Service Contract Act (SCA) and the Davis-Bacon Act (DBA).
  • Employment requirements related to International Traffic in Arms Regulations (ITAR)/Export Administration Regulation (EAR) and other security clearance issues.

Our labor and employment lawyers draw support from the firm’s government contracts practice and government policy specialists, who have in-depth knowledge of government contracting businesses. We combine our multidisciplinary approach with the contacts and resources of a full-service global law firm to provide contractors with unique insight into the legislative process and history behind the numerous laws impacting them.

Services in-depth

Federal Contractor Compliance Advice and Strategy

In addition to SCA and DBA concerns, we assist with a wide range of employment-related compliance issues, including:

  • Preparing for and complying with executive orders governing various labor and workplace issues.
  • Developing policies and practices to meet requirements for hiring employees working on federal contracts—such as adhering to revolving door rules, avoiding conflicts of interest and resolving and addressing denied-party screening, including those under ITAR and EAR.
  • Preparing and counseling contractors on structuring practical and legally sound arbitration agreements and programs in light of evolving federal requirements.
  • Creating and maintaining compliant business ethics policies and initiatives.
  • Navigating reductions-in-force due to sequestration and temporary government shutdowns.

Service Contract Act Compliance

Federal contractors using service employees to furnish services to the federal government must adhere to complex requirements and issues under the SCA. Our team assists clients with:

  • Assessing SCA coverage of contractors.
  • Complying with the wage determination and fringe benefit obligations for employees and independent contractors.
  • Assessing pension contribution obligations and liabilities.
  • Meeting requirements that arise with successor contracts.
  • Providing advice on the specific issues at the intersection of the Fair Labor Standards Act (FLSA) and the SCA’s prevailing wage requirements, including creating policies and procedures to minimize the risk of potential violations. Our lawyers routinely assist employers in conducting self-audits of their SCA practices and resolving SCA actions and audits by the U.S. Department of Labor (DOL).

Davis-Bacon Act Compliance

Our team assists federal contractors in understanding the added compliance burdens and the potentially higher labor costs associated with DBA minimum wage and fringe benefit pay requirements. We counsel contractors on various wage and fringe benefit issues, creating and submitting proper certified payrolls and defending against audits by the DOL regarding DBA compliance.

Affirmative Action and OFCCP Practice

We offer comprehensive and practical strategies in affirmative action compliance, ranging from the development of Affirmative Action Plans (AAPs) through preparation and defense of OFCCP audits. Our team proactively prepares clients to defend OFCCP audits while minimizing costs in:

  • Creating and structuring new AAPs and reviewing and redesigning preexisting AAPs.
  • Conducting privileged pay equity audits and discrimination analyses of hires, promotions and terminations.
  • Reviewing, designing and implementing sound applicant tracking procedures and recruiting processes.
  • Conducting glass ceiling and corporate management audits.
  • Providing management training related to OFCCP and Equal Employment Opportunity (EEOC) compliance.
  • Defense of OFCCP audits, including representation in negotiation with the DOL U.S. Solicitor’s office.
  • Representing consent decrees and conciliation agreements.
  • Designing and implementing disability accommodation policies and practices.
  • Creating and implementing diversity initiatives, including outreach to and recruitment of women, minorities, veterans and individuals with disabilities.

Labor & Employment Issues Affecting Government Contractors Insights

    News | Press Releases

    October 26, 2021

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          News | Press Releases

          October 26, 2021

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