SBA Seeks Comments on Proposed Updates to the HUBZone Program, and Clarifications to Other Small Business Programs
On August 23, 2024, the Small Business Administration (SBA) published a proposed rule that would make changes to its regulations for the Historically Underutilized Business Zone (HUBZone) Program to clarify certain policies. In 2019, SBA made significant revisions to these regulations to enhance the program’s efficiency and effectiveness. The proposed rule aims to further clarify and refine some of these changes, particularly by requiring that any certified HUBZone small business to be eligible as of the date of offer for any HUBZone contract. . . . Read More
Win or Lose: Using CMMC 2.0 Proposed Rule to Position Yourself for DOD Contracts
The Cybersecurity Maturity Model Certification ( CMMC ) Program has been a headache for many defense contractors since the idea was first introduced in 2019. The program seeks to protect unclassified information, including federal contract information (FCI) and controlled unclassified information (CUI) not intended for public release, shared by the Department of Defense (DOD) with its contractors and subcontractors. In December 2023, the DOD proposed a rule to formally codify the CMMC Program in a phased rollout. The DOD has now released . . . Read More
Call It What It Is: D.C. Cracks Down on Employee Misclassification in Construction
Employee misclassification is an area of employment law that has steadily become a prominent subject of litigation in recent years. The decision of whether a specific worker is properly identified as an employee or independent contractor is not always easy to make and depends on the specific policies and practices applicable to each worker. Making the correct decision is critical. Consistent with numerous other jurisdictions across the country, a new lawsuit filed by the District of Columbia Attorney General demonstrates . . . Read More
Supreme Court Opens Door to Broader Spectrum of Employment Discrimination Cases
In April 2024, the U.S. Supreme Court held that transferring an employee to a new position with the same rank and pay may constitute an adverse action under Title VII. The recent decision in Muldrow v. City of St. Louis, Missouri may have a substantial impact on employers. Employers nationwide should be aware of the new standard, implement internal processes to avoid discrimination claims, and understand how these changes will impact future personnel decisions. What Is Title VII? Most employers know that it is unlawful to . . . Read More
Managing Small Business Risk, Part I: Expect Litigation Even When It Seems Unlikely
No business wants to be investigated or charged by the government, sued by a competitor, or compelled to defend against an employment lawsuit. The risks of such litigation to any company are so predictable, though, that large businesses with in-house legal departments regularly employ attorneys focusing exclusively on these practices. Prior to the start of any specific dispute, lawyers in litigation and related roles guide business leaders and units in shaping internal policies and developing cultures of compliance. Indeed, the . . . Read More
When a Protégé Rebels Against Its Mentor: The Price Contractors Pay for Not Knowing Fiduciary Duties
What happens when a protégé rebels against its mentor? In a recent decision from the Eleventh Circuit, Yorktown Sys. Grp. Inc., v. Threat Tec LLC1, the court had to deal with such a question after Threat Tec, the protégé and small business in a joint venture, terminated its mentor, Yorktown, in order to acquire its workshare. In this opinion delivered by Judge Ed Carnes, the Eleventh Circuit affirmed the Northern District of Alabama’s decision to grant Yorktown a preliminary injunction . . . Read More
Newly Increased Health and Welfare Rates on SCA Government Contracts
The Department of Labor’s (DOL) Wage and Hour Division (WHD) has again issued new Service Contract Act (SCA) health and welfare (H&W) rates. In July 2024, WHD increased the prevailing H&W fringe benefits from a rate of $4.98 per hour to $5.36 per hour. Where a contractor is obligated to comply with Executive Order (EO) 13706 sick leave obligations, the rates have increased from $4.57 per hour to $4.93 per hour. Updated rates of $2.36 per hour (without the EO) . . . Read More
Texas Court Order Imperils FTC’s Forthcoming Non-Compete Ban
On July 3, 2024, the District Court for the Northern District of Texas stayed enforcement of the Federal Trade Commission’s (FTC) impending ban on non-compete agreements between employers and employees (the Rule) pending the outcome of ongoing litigation.1 While the injunction currently only applies to the parties in the case, the court has committed to publishing its final ruling on or before August 30, 2024, in advance of the Rule’s implementation date. The decision is a window into how the . . . Read More
Construction Industry Wage-and-Hour Issues: 6 Tips for Laying a Foundation of Compliance
The construction industry feeds a significant part of the U.S. economy, providing millions of short- and long-term jobs across the country on an annual basis. Since the passage of the Infrastructure Investment and Jobs Act in late 2021, the federal government has begun pumping the Congressionally-allocated $1.2 Trillion into transportation and infrastructure spending, with over $550 Billion allocated to new investments and programs. This federal re-investment into the construction industry, added to already-robust private construction spending, has led to increased . . . Read More
Broken Promises: The Government’s Ability to Trick Contractors and Get Away With It (Maybe)
As the government embraced the digital age in the years after COVID-19, its need for new software and technologies skyrocketed. This rapidly expanding procurement need presents great opportunities for businesses—both small and large—to satisfy the government’s needs. But every opportunity carries risks. In this blog, PilieroMazza explores a case that sheds light on (1) the risks posed by the ever-changing nature of software, (2) the government’s acquisition of new software using multi-option-year contracts, and (3) the legal enforceability of negotiated . . . Read More