DOL Publishes Guidance on Diversity Training Executive Order

On September 22, 2020, the Trump administration issued Executive Order 13950 (the Order) prohibiting workplace training that involves “sex stereotyping” or “scapegoating.”  The Order is applicable to federal employees, the military, and private entities that receive grants or federal government contracts. While there is much we do not know about the implications of the Order, this client alert examines the U.S. Department of Labor’s (DOL) limited guidance, issued yesterday, which sheds some light on the Order’s requirements and its implications for government contractors . . . Read More

Emergency Sick Leave Policy: Top 5 Measures to Defend Against a DOL Investigation

Companies across the country are still struggling to understand and implement the emergency sick and family leave imposed by the Families First Coronavirus Response Act (FFCRA).  The U.S. Department of Labor’s Wage and Hour Division (DOL), responsible for enforcing the provisions, initially provided a grace period to employers to come into compliance, but that time has passed and DOL is now investigating complaints of noncompliance. By way of example, Nicholas Security Commercial LLC, a Georgia-based home security company, was found . . . Read More

Is Your Arbitration Clause Leaving You Exposed?:  3 Ways to Protect Yourself

Arbitration clauses are included in many commercial contracts, particularly in government subcontracts. We often see arbitration clauses as tools to limit the parties’ exposure to protracted litigation if a dispute arises under the contract. Maryland, among many other state and federal courts, has an extremely strong public policy of favoring the enforcement of arbitration agreements.  The Maryland Court of Appeals has explained that the “public policy favoring such agreements is understandable, as arbitration agreements are generally a less expensive and . . . Read More

SBA Issues Guidance for PPP Lenders on Required Consents for Change in Ownership of PPP Borrowers

On Friday, October 2, the U.S. Small Business Administration (SBA) issued guidance for lenders administering loans under the Paycheck Protection Program (PPP) regarding what involvement by the SBA (if any) is required when a PPP borrower undergoes a transaction resulting in a change in ownership.  This guidance addresses several questions with which PPP borrowers and lenders have been struggling over the past several weeks and provides clarity around what the expectations are for when SBA consent is required and what . . . Read More

SBA in FY21: What’s Ahead for the Small Business Programs

PilieroMazza is a proud sponsor of the Small and Emerging Contractors Advisory Forum (SECAF), and partner Jon Williams is the Co-Chair of SECAF’s Planning Committee. On October 14th, SECAF will be hosting a panel discussion focused on the Small Business Administration (SBA) that may be of interest to many of our clients. Titled “SBA in FY21: What’s Ahead for the Small Business Programs,” the webinar will feature two panelists from SBA, Barbara Carson, SBA’s Deputy Associate Administrator for the Office of Government . . . Read More

BLOG: Important Considerations When Structuring M&A Transactions for Government Contractors: OCI, Reps and Warranties, and Assignment of Receivables Part 2 of a 3-Part Series

Our three-part series on government contractor M&A transactions provides an overview of key regulatory and industry-specific considerations that can impact all aspects of a deal. Part 1 is available here . It covers pre-transaction novation and affiliation issues. In Part 2, we move onto the transaction itself, diving into the potential for organizational conflicts of interest (OCI), regulatory compliance concerns, and the assignment of receivable rights. If ignored, these can impede the achievement of business objectives and lower the value of . . . Read More

BLOG: 5 Things to Know When Protesting an Award

The end-of-fiscal-year spending spike has federal agencies issuing more notices of award, leaving many disappointed offerors keen to file protests. Post-award protests are subject to strict timelines, so you need a plan if you receive an unfavorable notice of award. Below are 5 key things government contractors need to know when protesting an award. Ask yourself whether you have grounds to file a size protest or a bid protest. Generally, the strongest protest grounds pertain to: evaluation that is inconsistent . . . Read More

OFCCP Audits Are Coming: 6 Tips to Help You Prepare

The Office of Federal Contract Compliance Programs (OFCCP) just released its FY 2020 lists of Supply & Service and Construction contractors the agency expects to audit (see FY 2020 CSAL Supply & Service and FY 2020 CSAL Construction ).  With enforcement a primary goal of OFCCP, preparing for an audit is key.  If your company is on the list, PilieroMazza’s Labor & Employment team suggests you follow these 6 tips to properly prepare for an OFCCP audit to avoid potential penalties and possible loss of your government contract.  Also, join . . . Read More

Court Vacates Key Parts of DOL “Joint Employer” Rule Months After Implementing

On September 8, 2020, the Southern District of New York struck down a recent Department of Labor (DOL) final rule that changed the standard of joint employment under the Fair Labor Standards Act (FLSA).  The court determined that the rule conflicted with the FLSA and that the DOL did not properly justify the new change in policy.  This decision will expose more companies to potential liability under the FLSA and increase the number of businesses that qualify as joint employers, such as those who . . . Read More

New Minimum Wage Requirements for Government Contractors May Impact Price Adjustments

Effective January 1, 2021, the Executive Order (the Order) minimum wage rate that generally must be paid to workers performing work on or in connection with covered government contracts will increase to $10.95 per hour, while the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts will increase to $7.65 per hour. Each year, the Department of Labor (DOL) assesses the established minimum wage and, using determined methodology, announces an . . . Read More