Proactive Measures for Impending Increases to FLSA Salary Basis for White Collar Employees

Announced on April 23, 2024, the Department of Labor’s (DOL) Wage and Hour Division’s (WHD) final rule (Rule)—Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees—will begin impacting employers as soon as  July 1, 2024. Under the Rule, to maintain employee white-collar exemptions, employers will need to ensure employees are paid a salary of $844 weekly or $43,888 annually ($132,964 annually for highly compensated employees). These thresholds will increase again on January 1, 2025, to $1,128 weekly . . . Read More

Coming Soon! CISA’s Proposed Rule on Government-wide Cybersecurity Reporting Requirements for Contractors

The Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) was enacted in 2022 with the primary purpose of preserving national security, economic security, and public health and safety. CIRCIA provides the Director of the Cybersecurity and Infrastructure Security Agency (CISA) authority to enact rules regarding various reporting requirements therein. In early April 2024, CISA released a proposed rule ( Rule ) with two significant requirements: (1) a 72-hour deadline to report covered cyber incidents and (2) a 24-hour deadline to report . . . Read More

Question the Questions and the Answers: Bid Protest Decision Highlights Need to Clarify Ambiguities Prior to Bidding

Many solicitations for government contracts provide prospective contractors with the opportunity to ask questions. In some instances, the government’s answers to those questions create additional questions. When that’s the case, it’s crucial to seek clarification early; waiting to see how the procurement unfolds can have drastic consequences, leaving contractors with no recourse. A recently issued bid protest decision from the U.S. Court of Federal Claims—Eagle Hill Consulting, LLC v. United States [1] —highlights this important point. In Eagle Hill, the Federal . . . Read More

The Case for Intervening in Bid Protests: It’s Almost Always the Right Call

You’re a federal government contractor who just won a contract award. But, before you pop the champagne, there’s a hiccup: a competitor filed a bid protest challenging your award. “Oh, well,” you think, “the government can surely defend my award; there’s no reason for me to get involved.” Think again. This blog covers why contractors should step in and intervene when a bid protest challenges their awarded contract. It’s not just about safeguarding your contract; it’s also about ensuring you . . . Read More

Enforceability of Pay-if-Paid Clauses in Construction Subcontracts: Mid-Atlantic Region

Pay-if-paid clauses are conditional payment provisions regularly included in construction subcontracts. The intent of these clauses is to shift the risk of loss from a prime contractor to its subcontractors by making a project owner’s payment to the prime contractor a condition precedent to the prime contractor’s obligation to pay its subcontractors. [1] The enforceability of pay-if-paid clauses is a frequent topic of dispute, becoming more complicated when a prime contractor posts a payment bond protecting subcontractors and suppliers from non-payment . . . Read More

Impact of 11th Circuit’s Sovereign Immunity Waiver Decision on Tribally-Owned Businesses in SBA’s 8(a) Program

On May 1, 2024, the U.S. Court of Appeals for the Eleventh Circuit issued a sweeping decision impacting sovereign immunity for tribally-owned government contractors. The first-of-its-kind appellate decision concludes that by participating in the U.S. Small Business Administration’s (SBA) 8(a) Business Development Program (8(a) Program), tribally-owned entities waive sovereign immunity as to virtually all—if not all—claims connected in any way to the entity’s 8(a) Program participation, regardless of the tenuous nature of the connection. Tribally-owned government contractors should adjust their . . . Read More

CISA Unveils Final Self-Attestation Form for Software Producers Bidding on Federal Contracts

In March 2024, the Cybersecurity and Infrastructure Security Agency (CISA) released the final version of its secure software development self-attestation common form (Form), requiring federal government contractors who produce and provide software to verify that it complies with government-specified, minimum secure software development practices. Nearly one year ago, CISA published a draft version of the Form requesting public comment. PilieroMazza discussed some of the key requirements and implications of the draft form here . Contractors who sell software to the government . . . Read More

Is It Time for Regulations on GSA’s Contractor Teaming Arrangements?

In the late 1990s, the General Services Administration (GSA) created the concept of Contractor Teaming Arrangements (CTAs). Unlike the contractor teaming arrangements described under FAR 9.601, which simply describe a joint venture or prime contractor/subcontractor relationship, the GSA created a wholly new type of contracting team where all members of the team have privity [1] with the federal government and are all co-prime contractors…supposedly. In this blog, PilieroMazza reviews the limited rules governing CTAs and the impact on government contractors’ ability . . . Read More

Terms and Conditions vs. Contract Clauses: Which Language Applies to Government Contract Disputes?

Determining which language applies to a contract dispute is critical to any contractor seeking to recover costs through the claims and appeals process. Recently, through a series of appeals before the Civilian Board of Contract Appeals (CBCA) and the Court of Appeals for the Federal Circuit (Federal Circuit), both forums offered more fulsome guidance on when a contractor’s terms and conditions will apply to a contract despite potentially conflicting with standard federal contract provisions. Below, PilieroMazza summarizes relevant cases and . . . Read More

Unlocking the Potential of Phantom Equity: Incentive and Compensation Strategies to Attract and Retain Top Talent

Navigating the landscape of employee incentives can be complex, particularly when exploring non-traditional compensation methods. Phantom stock, also known as synthetic equity, offers a unique solution for business owners seeking to incentivize and retain key personnel without giving away ownership in the company. Below, PilieroMazza attorneys answer commonly asked questions regarding the nature of phantom stock, outlining its structure, benefits, and the strategic considerations involved with this valuable tool for attracting and retaining top talent. What is a phantom plan . . . Read More