Government contractors are already accustomed to the evolving nature of their industry. As administrations turn over, new legislation is introduced, and wage standards and industry practices evolve. Government contractors must be adaptable to maintain compliance. 2021 has been no exception and, with the onset of a new president and administration, there has been even more to keep up with!
Read on to see the top headlines and developments that contractors should be watching!
Independent Contractors Status Under FLSA
In January 2021, the Department of Labor announced a rule addressing the distinction between employees and independent contractors under the Fair Labor Standards Act (FLSA). The rule, originally set to take effect in March 2021, was delayed until May. Eventually, after the delay and a lengthy comment period, the Department of Labor announced a final rule withdrawing the Independent Contractor Rule. The Department of Labor found that the Independent Contractor Rule was inconsistent with FLSA’s text and purpose.
Click here to read more about Independent Contractor status under FLSA.
Government Contractors Become Focus for DOL Wage Enforcement
The Davis-Bacon Act and Service Contract Act are getting a renewed focus as the Department of Labor plans to ramp up enforcement of wage standards. This action from the Department of Labor acts in support of the current administration’s infrastructure and jobs package. This infrastructure push will lead to an increase in government investment in projects developed by private companies. In response, the Department of Labor has begun to expand its investigative capacity under the two statutes that require government contractors to pay workers prevailing wages and benefits.
Click here to read more about how the Wage and Hour Division is preparing to expand its enforcement efforts.
The Impact of the Current Administration on Government Contractors
Top priorities of the current administration include cybersecurity measures, domestic preferences, infrastructure, and compliance and enforcement. Government contractors will feel the effects of these priorities at nearly every level of their business. There is a great deal of opportunity associated with the expanded focus on infrastructure, but it’s also true that this focus will create many new challenges.
Click here to learn more about what government contractors can expect under the Biden administration.
Adaptable Solutions for Government Contractors
At Boon, we pride ourselves on taking an innovative approach to benefit solutions. For 35+ years we have been there alongside government contractors, riding out changes in the industry and adapting our solutions to meet contractors where they are. Our benefits are compliant, cost-effective, and offer a competitive edge to contractors – all backed by our consultative approach.
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