With a possible federal government shutdown looming, many government contractors will face difficult employment decisions. If your company could be facing these decisions, keep in mind the following labor and employment issues that could expose the company to liability: 1. Don’t risk exemptions under the Fair Labor Standards Act (FLSA): Employers should exercise caution so as not to risk losing an employee’s exempt status that may trigger liability for overtime hours the employee worked prospectively and retrospectively. An exempt, salaried employee . . . Read More
She was a director of marketing for a drug company who had received a performance improvement plan to address issues related to her relationships with co-workers and supervisors. But she had also raised concerns about the company’s purported “off-label” use of drug products, which is the unapproved use of an approved drug or the use of a drug for purposes other than those that have been approved by the FDA. She eventually resigned and later alleged that she was constructively . . . Read More
On January 10, 2018, the VA issued a proposed rule to eliminate its own ownership and control criteria for SDVOSB and VOSB eligibility under the Vets First contracting program, in order to align ownership and control requirements with the SBA’s SDVOSB program regulations. The proposed rule implements Congress’ mandate in the 2017 National Defense Authorization Action (“NDAA”) that the SBA be the sole agency responsible for the establishment of ownership and control requirements governing SDVOSB and VOSB eligibility. In an attempt to . . . Read More
The Tax Cuts and Jobs Act of 2017 (the “Act”) provides the most comprehensive tax reform in more than three decades. Small and medium business owners will find that the Act reduces their total taxes both on an entity and an individual level, while also creating tax incentives to spend on capital expenditures through accelerated depreciation of both used and new property. Here are some highlights from the Act. Tax Rates on C Corporations and Pass-Through Entities The change in . . . Read More
GOVERNMENT CONTRACTS Pentagon Task Force’s $675 Million in Contracts to Rebuild Afghanistan Found Wasteful According to an article from Government Executive, the Defense Department’s now-defunct business task force for rebuilding war-torn Afghanistan has again been found to have ineffectively spent its budget, devoting more than half of $675 million in contract obligations to indirect or support costs. The Special Inspector General for Afghanistan Reconstruction on Tuesday released its latest critique of the Pentagon’s Task Force for Business and Stability Operations, . . . Read More
In a recent Virginia state court case, PilieroMazza secured full dismissal in favor of a small business client in a lawsuit brought by a former employee claiming an ownership interest in the company. The Circuit Court of Prince William County, Virginia dismissed the case based on a motion filed by Megan Connor, Matthew Feinberg, and Timothy Valley on behalf of the employer. Although the employer had engaged in preliminary written discussions about the company offering the former employee an ownership . . . Read More
The use of unpaid interns is a common practice across many industries, especially in the D.C. Metro area. And the question recently addressed by the Ninth Circuit is not a new one: under what set of circumstances does an unpaid intern in the private sector cross the line and become an employee under the Fair Labor Standards Act (“FLSA”) and thus become entitled to compensation? Since 2010, the Department of Labor (“DOL”), when grappling with this question, has applied a . . . Read More
We recently wrote about enhanced post-award debriefing requirements included in the Senate’s version of the National Defense Authorization Act (“NDAA”) for Fiscal Year 2018 [ read article here ]. The final NDAA signed into law on December 12, 2018, incorporates many of the changes from the Senate version, though the changes are not as burdensome on the Department of Defense (“DoD”) in the final NDAA. For instance, the final NDAA requires a written or oral debriefing for all contract and task order awards . . . Read More
With a new year upon us, it is an optimal time for contractors to review their size/status certifications on SAM.gov. A contractor’s representations in the SAM database qualify as certifications upon which federal agencies and prime contractors may rely. An inaccurate certification on SAM could lead to a protest by the SBA or liability under the False Claims Act. Therefore, it is vital that contractors keep these certifications up-to-date. SBA’s regulations require contractors to certify their size in SAM “at . . . Read More
The General Services Administration (“GSA”) and the Office of Management and Budget (“OMB”) are providing an important opportunity to the public to provide input into the implementation of the so-called “Amazon Amendment,” Section 846 of the recently-enacted National Defense Authorization Act (“NDAA”) for Fiscal Year 2018. GSA has published in the Federal Register a Notice of public meeting and request for information (“Notice”) which can be found here . NDAA Section 846 (“Amazon Amendment”) The Amazon Amendment is anticipated to have . . . Read More
