Ratification of Defective Corporate Actions Under the Virginia Stock Corporation Act
In 2019, the Commonwealth of Virginia adopted a variety of amendments to the Virginia Stock Corporation Act (VSCA). While many of those amendments are already effective, some of the amendments will go into effect on July 1, 2021, including those addressing how a corporation may ratify defective corporation actions. These new provisions provide corporations with vital tools to ensure that actions taken by the corporation, which might otherwise be found to be void or voidable under Virginia law, are valid . . . Read More
8 Key Takeaways from Executive Order on Improving the Nation’s Cybersecurity for Government Contractors
On May 12, 2021, the Biden administration released a far-reaching executive order intended to improve the U.S. government’s cybersecurity posture, both internally and in any private information technology (IT) systems that “touch” federal IT systems. This executive order will work in tandem with existing initiatives, such as the Cybersecurity Maturity Model Certification (CMMC), the Federal Risk and Authorization Management Program, and National Institute of Standards and Technology (NIST) publications. Notably, and unlike CMMC, the executive order is concerned more with . . . Read More
Protecting Your Company Against Revenue Clawbacks: Preference Actions (Part 3 of 3)
This is the final part of our three-part series on revenue clawbacks. The scenario: a customer or teaming partner goes bankrupt and then they (or a trustee) demand you return money they already paid you for services or goods duly rendered. In the first entry , we discussed the definition of preferences and the policy purpose of preference actions. In the second , we identified five specific actionable items to take to limit your exposure to them. In this finale to the series, . . . Read More
Restaurants are Prime Targets for FLSA Lawsuits: 6 Tips for Employers Relying on the Tip Credit
The COVID-19 pandemic has been particularly difficult for the food and beverage industry. With stay-at-home orders, operational capacity restrictions, and indoor dining limitations imposed on restaurants and bars across most of the country throughout 2020 and into 2021, the impact has been significant. The hospitality industry lost hundreds of billions of dollars in anticipated revenues; beloved local eateries closed their doors temporarily or permanently; and millions of restaurant workers lost their jobs or left the hospitality industry altogether. Now, as . . . Read More
COFC Denies DOJ/Microsoft Motion to Dismiss Amazon JEDI Protest
On April 28, 2021, the U.S. Court of Federal Claims issued a sealed decision denying the Department of Justice’s (DOJ) and Microsoft’s motions to dismiss Amazon Web Services’ (Amazon) bid protest of the Pentagon’s $10 billion Joint Enterprise Defense Infrastructure (JEDI) cloud contract. Amazon claims repeated prejudicial errors against Amazon Web Services due to influence from then-President Donald Trump and other high-level government officials aiming to harm Amazon. DOJ and Microsoft failed to convince the Court to dismiss the . . . Read More
SBA Extends the HUBZone Map Freeze to June 30, 2023
Today, the Small Business Administration (SBA) issued a direct final rule extending the HUBZone map freeze from December 31, 2021, to June 30, 2023. The direct final rule (available here ) takes effect on June 21, 2021. This is the latest in a series of developments for the HUBZone Program in 2021; read PilieroMazza’s previous coverage on the developments impacting the HUBZone Program here and here . Several years ago, SBA froze the HUBZone maps until December 31, 2021, to ensure that firms . . . Read More
A Decision Right Up an Employee’s Alley: Recent Virginia Federal Court Opinion Weakens Protections for Companies Utilizing Consultants and Independent Contractors
Government contractors and commercial businesses alike frequently retain consultants and independent contractors to perform certain types of work, particularly in the construction, healthcare, and information technology industries. This is so because utilizing independent contractors, as opposed to employees, can offer some attractive benefits to companies. For instance, utilizing independent contractors may reduce company overhead, general and administrative, and fringe benefit expenses; it may allow for flexible work schedules, particularly on projects with indefinite schedules or workloads; and it may permit . . . Read More
GAO Holds Solicitation Requirement Violates SBA’s Regulations Regarding Small Business Mentor-Protégé Joint Ventures
In a recent decision , the Government Accountability Office (GAO) sustained a protest challenging the terms of a solicitation, as the solicitation impermissibly required that a protégé and mentor in a joint venture have the same level of experience as other offerors. This is an important decision for companies that are parties to a joint venture, and a reminder to carefully review a solicitation’s requirements before submitting a proposal. As relevant background, the Small Business Administration (SBA) revised its regulations in November . . . Read More
Biden Signs EO to Increase Federal Contractor Minimum Wage Rate to $15.00 an Hour
Yesterday, President Biden signed an executive order (Biden Order) that will increase the applicable minimum wage rate to be paid to workers performing work on or in connection with federal contracts from $10.95 to $15.00 per hour beginning January 1, 2022. As early as his second day in office, President Biden committed to modifying an Obama-era executive order to get one step closer to a national minimum wage increase of the same magnitude. Below are key details on the applicability . . . Read More
Return to Work: Employer-Mandated COVID Vaccination Policies and Accommodating Employee Disabilities and Religious Beliefs
With over 50% of the adult population in the United States having received at least one dose of a vaccine to combat the novel coronavirus (COVID), many businesses and employers are looking forward to a “return to normal” and their employees coming back to the workplace. One common consideration is whether an employer should implement mandatory COVID vaccination requirements as part of their return-to-work policies. Employers must be mindful of ensuring that their return-to-work policies, including any vaccination mandates, comply . . . Read More