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Clocking in with PilieroMazza: FTC Non-Compete Ban Attacked by Businesses: What You Need to Know, PilieroMazza Podcast, Nichole D. AtallahSarah L. Nash. Click here to access the podcast. 

Federal Trade Commission (FTC) Final Rule: Non-Compete Clause (Non-competes) Rule

On May 6, FTC published a final rule deeming an unfair method of competition for persons to enter non-competes with workers. For existing non-competes, the final rule adopts a different approach for senior executives than for other workers. For senior executives, existing non-competes can remain in force, while existing non-competes with other workers are not enforceable after the effective date. The Final Rule is available here and will be effective September 4, 2024.

Department of Labor (DOL) Guidance: Artificial Intelligence (AI) and Equal Employment Opportunity (EEO) for Federal Contractors

On April 29, the DOL’s Office of Federal Contracting Compliance Programs (OFCCP) updated its guidance regarding Executive Order (EO) 14110, requiring government agencies to ensure responsible and safe development and use of AI. While some federal contractors may use AI systems to increase productivity and efficiency in their employment decision-making, the use of AI systems also has the potential to perpetuate unlawful bias and automate unlawful discrimination. OFCCP answers questions and shares practices to clarify federal contractors’ legal obligations, promote EEO, and mitigate the potentially harmful impacts of AI in employment decisions. Read more here.

Upcoming Labor & Employment Presentations

TRAINING: Labor Rules & Regulations: Federal Market Compliance, Nichole D. Atallah, May 15, 2024. Read more here.

WEBINAR: From Compliance to Competitiveness: Revamped DBA Rule Reshapes Labor Landscape for Construction Contractors, Nichole D. AtallahSarah L. Nash, May 15, 2024. Read more here.



Preparing for Major Changes to DOT’s Disadvantaged Business Enterprise (DBE) Program Effective May 9, 2024, PilieroMazza Webinar Replay, Jacqueline K. UngerPeter B. Ford. Click here to view the recorded session.



Small Business Administration (SBA) Direct Final Rule: Changes to the Microloan Program under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act 

On May 2, SBA published a Direct Final Rule amending its Microloan Program regulations to reflect statutory changes to the Microloan Program in the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. The changes increase the amount an Intermediary may borrow per year and in aggregate, expand eligibility for Intermediaries to receive a bonus grant, and revise the eligible base grant award amount for Intermediaries under certain circumstances. This direct final rule conforms to the regulations of the Act by adopting the new statutory requirements. The Final Rule is available here and will be effective June 17, 2024, unless a significant adverse comment is received by June 3, 2024.

Agency for International Development (USAID) Final Rule: USAID Acquisition Regulation (AIDAR), Planning, Collection, and Submission of Digital Information, Submission of Activity Monitoring, Evaluation, and Learning Plan to USAID

On May 6, USAID published a final rule amending AIDAR and implementing requirements for managing digital information as a strategic asset. This final rule incorporates new policy on Digital Information Planning, Collection, and Submission Requirements and adds the corresponding clause and a new clause entitled, “Activity Monitoring, Evaluation, and Learning Plan Requirements,” to the AIDAR. This final rule reduces the burden on contractors, increases efficiency, and improves the use of data and other forms of digital information across the Agency’s programs and operations. The Final Rule is available here and will be effective June 5, 2024.

Federal Acquisition Regulation (FAR) Council Advanced Notice of Proposed Rulemaking (ANPRM): Prohibition on Certain Semiconductor Products and Services

On May 3, the Department of Defense, General Services Administration, and National Aeronautics and Space Administration published an ANPRM to solicit comments about potential rulemaking implementing paragraphs (a), (b), and (h) in section 5949 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 prohibiting executive agencies from procuring or obtaining certain products and services that include covered semiconductor products or services. The ANPRM is available here. Comments close July 2, 2024.

The White House Press Release: Fact Sheet: Celebrating National Small Business Week, Biden-Harris Administration Announces a Record in Federal Procurement Dollars Awarded to Small Businesses

On April 29, the White House released a fact sheet noting that in FY2023 the Administration awarded an all-time high in federal contracts to small businesses across federal agencies. In total, a record-high of $178.6 billion, or 28.4 percent, of all contracting dollars went to small businesses. Read more here.

Small Business Administration (SBA) Press Release: Biden-Harris Administration Announces New Rule to Increase Economic Opportunity for Returning Citizens
On May 1, Administrator Isabel Casillas Guzman announced that the Biden-Harris Administration finalized a rule that will remove restrictions on SBA loan programs currently preventing many returning citizens, including those on parole and probation, from being eligible for SBA-backed loans to start or grow a business. As part of this rule change, the SBA will also remove questions on criminal history from its applications. Individuals who are currently incarcerated and those who have previously defrauded the government will remain ineligible for SBA-backed loans. Read more here.

Upcoming Government Contracts Presentations

TRAINING: Legal Considerations: How Best to Structure Your Company as a Federal Contractor, Isaias “Cy” Alba, IV, May 14, 2024. Read more here.



Department of Defense (DOD) Memorandum: Class Deviation, Safeguarding Covered Defense Information and Cyber Incident Reporting

On May 2, DOD issued a class deviation, effective immediately, requiring contracting officers to use Attachment in lieu of DFARS clause 252.204-7012. Read more here.

Department of Defense (DOD) Press Release: DOD Issues Class Deviation on Cybersecurity Standards for Covered Contractor Information Systems
On May 2, the Office of the Under Secretary of Defense for Acquisition and Sustainment, in collaboration with the Office of the Chief Information Officer issued a Defense Federal Acquisition Regulation Supplement (DFARS) class deviation relating to the cybersecurity standards required for covered contractor information systems. Read more here.