New DOL Salary Levels for FLSA-Exempt Employees
The Department of Labor (“DOL”) has finally issued final rules revising the salary levels that will be used to determine if certain employees are exempt from the overtime provisions of the Fair Labor Standards Act (“FLSA” or “the Act”). These rules will appear in the May 23, 2016, edition of the Federal Register and have an effective date of December 1, 2016. Under the FLSA, employees are entitled to be paid time and a half for all hours worked in excess of a normal work week, usually 40 hours. However, the Act exempts employees in executive, administrative, or professional positions. Read More.
Subcontractor Oversight (Who’s Responsible?)
By: Ken Bricker , CPA, DABFA, Partner Who has privity? 42.505 – Post-award Subcontractor Conferences (a) The prime contractor is generally responsible for conducting post-award conferences with subcontractors. However, the prime contractor may invite Government representatives to a conference with subcontractors, or the Government may request that the prime contractor initiate a conference with subcontractors. The prime contractor should ensure that representatives from involved contract administration offices are invited. (b) Government representatives– (1) Must recognize the lack of privity of contract between the Government and subcontractors; (2) Shall not take action that is inconsistent with or alters subcontracts; and (3) Shall ensure. Read More.
Topics: Cognizant Federal Agency "CFA", Cost Accounting Standards "CAS", Defense Contract Audit Agency "DCAA", Department of Defense "DoD", National Defense Authorization Act "NDAA", privity of contract, subcontractors
FLSA Changes on Overtime Compensation Expected Summer 2016
By: Sara Crabtree , Manager Cherry Bekaert has been providing periodic updates on proposed changes to the Fair Labor Standards Act (“FLSA”) in regard to overtime compensation and how employers might be impacted by these changes. The Solicitor of Labor has now confirmed that the changes are expected to be finalized and announced during the late spring or summer of 2016, and will become effective 60 days after finalized. In March 2014, President Obama issued a memorandum to the Secretary of Labor, directing him to “propose revisions to modernize and streamline the existing overtime regulations” (under the FLSA). Although the President did. Read More.
ESOPs Gain in Popularity
By: John Carpenter , Principal Many private company business owners are taking a closer look at Employee Stock Option Plans (“ESOPs”) as a tool for either an exit strategy or a way to “take money off the table” through a sale of a portion of their company stock holdings. ESOPs were a less popular diversification strategy during the 2000s when government spending was on the rise, especially within the Department of Defense (“DoD”) and many companies could sell for attractive multiples with large, upfront cash components. The combination of flat to declining DoD budgets leading to less attractive market multiples, and capital. Read More.
Accounting System Assessment – Alliant 2 Contract
By: Eric Poppe, Manager; Kristen Kwiatkowski, Manager; and Jacob Barclay, Consultant There have long been rumors that the General Services Administration (“GSA”) will be releasing Alliant 2 (“A2”) and Alliant 2 Small Business (“A2SB”) Governmentwide Acquisition Contract (“GWAC”) Request for Proposals (“RFP”) in the near future. While there has been much speculation of a June 2016 release, nothing yet is certain. As companies begin to prepare for the final release of these two separate solicitations, companies should consider what regulatory impact the potential award could have on their compliance environment. The Draft Request for Proposals (“DRFP”) previously released on March. Read More.
Topics: Alliant 2, Alliant 2 Small Business "A2SB", Cognizant Federal Agency "CFA", Defense Contract Audit Agency "DCAA", Defense Contract Management Agency "DCMA", Draft Request for Proposals "DRFP", General Services Administration "GSA", Governmentwide Acquisition Contract "GWAC"
Proposed Changes to Contractor Purchasing System Clause
The Department of Energy (“DOE”) is proposing to amend the Department of Energy Acquisition Regulations (“DEAR”) to increase dollar thresholds in its contractor purchasing system clause for management and operating contracts to conform to Federal Acquisition Regulation (“FAR”) Subpart 28.1. Additionally, DOE is revising the DEAR in accordance with a class deviation addressing Buy American Act non-availability determinations. Currently, DEAR section 970.5244-1, Contractor purchasing system, paragraphs (f)(1) through (f)(3) do not presently reflect the applicable dollar threshold in FAR 28.102-2(b) and (c). This proposed rule replaces the dollar amount in these paragraphs with reference to title 48 of the Code of. Read More.