• Comments due August 26, 2015. Submit your comments here.
• In your comments, reference this rule by RIN: 1290-ZA02
• Useful Resource: Department of Labor Fair Pay page
• The FAR Council is seeking comments on specific topics as summarized in this article.
• U.S. SBA Advocacy Contact: Major Clark or call 202-205-6533
   

Brief summary:

On May 28, 2015 the FAR Council published a proposed rule, Fair Pay and Safe Workplaces,  to amend the Federal Acquisition Regulation (FAR) to implement the Executive Order "Fair Pay and Safe Workplaces."  

The Executive Order (E.O.) requires that for contracts over $500,000 prospective and existing contractors disclose whether under certain labor laws there has been any administrative merits determination, civil judgment, or arbitral award or decision rendered against them during the preceding three-year period. 

The E.O. directs agencies to include clauses in their contracts that require similar disclosures by certain subcontractors so their prime contractors can also consider labor violations when determining whether there have been any similar violations by prospective or existing subcontractors. 

The E.O. further requires that processes be established to assist contractors and subcontractors to come into compliance with labor laws. 

To achieve paycheck transparency for workers, the E.O. requires contractors and subcontractors to provide individuals with information each pay period regarding how they are paid and to provide notice to those workers whom they treat as independent contractors. The E.O. also addresses arbitration of employee claims.

This proposed rule, and a proposed guidance document being issued simultaneously by the Department of Labor (DOL), are intended to implement the E.O.'s requirements.   The comment period for the proposed guidance has been extended; comments are due by August 26, 2015.  

Thanks to Madison Services Group for the above summary.

• Comments due by September 4, 2015. Submit your comments here. 
• In your comments, reference this rule by RIN: 1235-AA11
• Additional information on the proposed rule.
• U.S. SBA Advocacy Contact:  Janis Reyes at 202-205-6533
   

Brief Summary:

The Department of Labor's Wage and Hour Division (DOL) published its proposed rule that amends the regulations under the Fair Labor Standards Act (FLSA) governing the "white collar" exemption from overtime pay for executive, administrative and professional employees.

The proposed rule from DOL:

• would double the salary threshold for employees who are eligible to receive overtime pay, from $23,660 to $50,440. This salary threshold will also be updated every year in the Federal Register.
• does not propose regulatory changes to the duties tests, which require employees to perform certain primary duties to qualify for an overtime exemption.  However, DOL is seeking feedback on whether these duties tests should be revised.

DOL estimates that this rule would:

• directly affect 4.6 million workers in the U.S. Total direct employer costs for Year 1 are estimated to equal $592.7 million dollars. 
• cost each small business, on average depending on the number of workers covered by the regulation, $100 to $600 in direct costs and $320 to $2,700 in additional payroll costs to employees in the first year after the promulgation of the proposed rule.
• cause each small business to spend one hour of time for regulatory familiarization; one hour per each affected worker in adjustment costs; and five minutes per week scheduling and monitoring each worker expected to be classified as overtime eligible as a result of the proposed rule.

Suggested comments include information providing feedback on the number and types of small businesses affected by this rulemaking, the compliance costs of this rule to these small businesses, and any significant regulatory alternatives that may minimize the impacts of this rule.

Thanks to Madison Services Group for the summary above.

We encourage you to provide your input and help shape this policy during the comment period on one or both issues outlined above.