Last month, the DOL announced the Payroll Audit Independent Determination program (“PAID”), a self-auditing program designed to encourage employers to uncover and voluntarily report potential minimum wage and overtime violations and avoid the risk of penalties or liquidated damages that would be imposed if the Agency discovered the violations in the first instance. We initially discussed the PAID program here.
Articles Discussing Affirmative Action
OFCCP Lowers Hiring Benchmark for Veteran Affirmative Action Plans
On March 30, 2018, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) announced that it was lowering the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) hiring benchmark to 6.4 percent from 6.7 percent. The change applies to affirmative action plan (AAP) years starting on or after March 31, 2018.
OFCCP Funding to Remain at Same Level
In the new spending bill passed by Congress and approved by President Trump last week, OFCCP will receive essentially the amount of funding as it has in previous years. As signed by the President, the budget has $103,476,000 allocated to OFCCP, which is comparable to the $103,767,000 for FY2018, and significantly up from the $91 in the President’s proposed budget. The one sentence appropriation for OFCCP can be found on page 886 of the 2232 page bill.
Federal Contractor Paid Sick Leave in Effect
As the first quarter of 2018 nears its end, and we are adjusting to an extra hour of daylight (and an hour less sleep this weekend) we wanted to take a moment to remind you about the Paid Sick Leave obligations that went into effect in January 2017 for covered contractors. For a refresher of these obligations, check out the blog post my colleague Megan Holstein and I recently posted.
Are you covered by the Federal Paid Sick Leave Law for Federal Contractors?
As paid sick leave laws continue to pass across the nation, as recently seen in Austin, Texas, employers have focused on complying with the various state and local jurisdictions’ paid sick leave requirements . However, employers may forget, or might have to totally missed, that there is a federal paid sick leave law. Executive Order 13706, Paid Sick Leave for Workers on Federal Contracts (hereinafter called “Federal Contractor Paid Sick Leave Law”), requires that covered federal contractors provide paid sick and safe leave for qualified reasons to eligible employees. Eligible employees can use this time for their own health care, a family member’s health care, and certain needs related to domestic violence, sexual assault, stalking.
Affirmative Action Training May Be Your Best Friend
Many hospitals and healthcare facilities are federal contractors. Jackson Lewis regularly provides specialized assistance in developing and implementing affirmative action plans (AAPs).
Public Advocacy Group Sues OFCCP in Connection with EEO-1 FOIA Requests
As we’ve been discussing, now is the time for employers to be filing their annual EEO-1 reports. Coincidentally, and perhaps not un-intentionally, Public Citizen, a non profit advocacy group is also using this time to sue OFCCP around its practices of withholding information involving employers’ EEO-1 reports.
U.S. Department of Labor Announces Self-Audit Program
Mistakes happen. But when those mistakes result in a violation of the Fair Labor Standards Act, what is an employer to do? Pay twice the amount of wages owed to cover both back wages and an amount equal to liquidated damages? Hope no one notices? Well, thanks to the Wage and Hour Division (WHD) of the DOL, another option is now available to provide “make whole” relief to the employees and a binding release of FLSA claims for the employer, without the agency penalties and without the liquidated damages that may provide nothing more than a windfall to employees who have received all wages due.
Scheduling letters to federal contractors go out soon. Is your company ready for an audit by the OFCCP?
A thousand or more federal contractor and subcontractor establishments will receive audit scheduling letters in the next few weeks because they have been picked for a compliance review by the government—and it is not too late to make sure affirmative action plans are ready for close scrutiny.
Proposed Budget Seeks to Cut DOL Funds
The highly anticipated proposed budget released today by the White House included expected budget cuts for the U.S. Department of Labor. While cutting funds for the DOL, the proposed budget did not resurrect the previously raised possible merger of OFCCP and EEOC.
Kate O’Scannlain Confirmed for Solicitor
Kate O’Scannlain was confirmed as the Solicitor of Labor for the U.S. Department of Labor by the Senate on December 21, 2017. O’Scannlain will serve as the Agency’s top lawyer, helping the Labor Department set the policy and enforcement agenda. Prior to her confirmation, O’Scannlain was a partner at Kirkland & Ellis, LLP.
Breaking News: New OFCCP Director Identified
The U.S. Department of Labor has quietly identified a new Director of the Office of Federal Contract Compliance Programs. An industry news outlet is reporting DOL has confirmed Ondray T. Harris will be the new head of the agency. A new update to OFCCP’s website lists him as the Director of the Agency. Interim Director Tom Dowd is listed as the Deputy Director.
Still No New Director for OFCCP
As of today, OFCCP remains without a new director. According to Bloomberg News, an industry news outlet, the Department of Labor has confirmed Craig Leen has begun work as a “senior advisor” within OFCCP. No additional information regarding his role was provided.
BREAKING NEWS: Craig Leen Anticipated To Be New OFCCP Director
In an unexpected, but much awaited move, it is anticipated Craig Leen will be named as the new head of the Office of Federal Contract Compliance Programs (“OFCCP”). While the Department of Labor has not formally confirmed or commented on this development, Leen’s appointment would come more than a year after Patricia Shiu departed the position in November 2016. Since that time, Tom Dowd has held the position of interim Director at OFCCP.
Minimum Wage for Federal Contractors Increased Effective January 1, 2018
Effective January 1, 2018, the minimum wage for federal contractors working on or in connection with contracts covered by Executive Order 13658 will be $10.35/ hour. The announcement was made via posting in the federal register on September 15, 2017. The wage rate for tipped employees will also increase to $7.25/hour.