SBA to Propose Massive Changes to Its Small Business Size Standards
On August 20th, SBA will publish stunning proposed changes to its size standards, replacing the August 2025 proposed rule, which we discussed here, as well as revised size standards methodology. From time to time, SBA reviews and proposes changes to its size standards and those changes are typically incremental and to adjust for inflation. Tomorrow’s proposed changes are massive and will dramatically reshape how small businesses are determined for federal contracting if finalized. One of the major proposed changes is . . . Read More
2026 Newly Increased Health and Welfare Rates on SCA Government Contracts
The Department of Labor’s (DOL) Wage and Hour Division (WHD) has again issued new Service Contract Act (SCA) health and welfare (H&W) rates. Effective August 10, 2026, WHD increased the prevailing H&W fringe benefits from a rate of $5.55 per hour to $5.92 per hour. Where a contractor is obligated to comply with Executive Order (EO) 13706 sick leave obligations, the rates increased from $5.09 per hour to $5.42 per hour. Updated rates of $2.51 per hour (without the EO) . . . Read More
SBA Finalizes Rule Regarding Social Disadvantage Requirements for Individually-Owned 8(a) Applicants
Today, just shy of 30 days after comments on the proposed rule closed, SBA issued a final rule entitled “Reforms to 13 CFR 124.103 to remove SBA’s 8(a) Program’s rebuttable presumption of social disadvantage for individually owned firms only. Reforms do not impact entity-owned firms.” This client alert covers key aspects of the final rule and how it will impact your pending or future 8(a) application. Notably, this final rule does not impact current individually-owned participants in the U.S. Small . . . Read More
SBA Commends DoW CMMC Suspension
On July 13, 2026, the U.S. Small Business Administration (SBA) Office of Advocacy announced that working with industry partners, including PilieroMazza, the SBA had worked to convince the U.S. Department of War (DoW) to suspend the Cybersecurity Maturity Model Certification (CMMC) program’s Phase II requirements and conduct a comprehensive review of the costs and regulatory requirements associated therewith. The suspension and investigation of CMMC Phase II marks a pivotal moment for small business contractors with concerns about the costly red . . . Read More
Virginia’s New Pay Transparency Law: What Employers With Virginia Employees Need to Know Now
Effective July 1, 2026, Virginia has enacted a new pay transparency law requiring employers with Virginia employees to disclose compensation ranges and follow new restrictions on salary history. The law applies broadly and creates both enforcement risk and private litigation exposure. Employers with employees in Virginia should act now to ensure compliance with the new pay transparency law. What the Virginia Law Requires Set and disclose good‑faith pay ranges in postings. Employers must disclose the wage, salary, or wage/salary range . . . Read More
GSA’s Revised AI Clause: Narrower Scope, Broader Compliance Demands on Government Contractors
On June 17, 2026, the General Services Administration (GSA) released a revised version of proposed General Services Administration Regulation (GSAR) clause 552.239–7001 on safeguarding Artificial Intelligence (AI) for public comment, responding to industry concerns regarding scope, applicability, and operational feasibility. The revised clause narrows its applicability to contractors using Large Language Model Artificial Intelligence Systems (LLMs) to process Government Data—but for contractors within its scope, compliance obligations are now far more detailed and enforceable. Below, we discuss key changes. Scope . . . Read More
SBA Issues Proposed Rule Regarding Social Disadvantage Requirements for Individually-Owned 8(a) Applicants
On June 11, 2026, SBA issued a proposed rule entitled “Reforms to Remove SBA’s 8(a) Program’s Rebuttable Presumption of Social Disadvantage for Individually Owned Firms Only; Reforms Do Not Impact Entity-Owned Firms.” This client alert covers key aspects of the proposed rule and how it may impact a contractor’s pending or future 8(a) application. Notably, this proposed rule does not impact current individually-owned participants in the U.S. Small Business Administration’s (SBA) 8(a) business development program (8(a) program) or entity-owned firms. . . . Read More
No Severance, No Noncompete: Virginia Mandates Employers Pay for Enforceable Noncompete Agreements Against Laid-Off Employees
Virginia has become increasingly hostile to noncompetition agreements as of late. Starting July 1, 2026, Virginia employers will be prohibited from enforcing new noncompete agreements against employees who are laid-off or fired without cause—unless the employer pays them severance or another amount that it specifies upfront in the noncompete agreement. Before the law takes effect, Virginia employers should review their noncompete agreements and employee separation practices to ensure compliance and minimize legal and financial penalties. What Restrictions Does the New . . . Read More
House Small Business Committee Unanimously Advances “Rule of Two” Bill Toward Full House Vote
In a significant development for the small business federal contracting community, the House Small Business Committee unanimously approved an amended version of H.R. 2804, the Protecting Small Business Competitions Act of 2025, advancing legislation that would codify the longstanding Rule of Two into statute. The bill now moves to the full House of Representatives for consideration. This milestone marks a major step toward placing one of the federal procurement system’s foundational small business protections on firmer legal footing. The Rule . . . Read More
House Committee to Consider Legislation Codifying the Rule of Two for Small Business Set-Asides
On Wednesday, May 20, the House Committee on Small Business is scheduled to consider legislation that would codify the Rule of Two into federal law. Stakeholders have a near-term opportunity to show support by filling out this form to sign onto an industry letter urging the Committee to advance H.R. 2804, the Protecting Small Business Competitions Act of 2025, ahead of the Full Committee Markup. Background on the Rule of Two For decades, the Rule of Two has been a . . . Read More