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Government Contractors

Final Overtime Rule on Hold

A November 22 preliminary injunction has blocked the Overtime Final Rule scheduled to become effective Thursday. Last week’s ruling by Federal Judge Amos Mazzant determined that the Department of Labor overstepped its authority by amending the salary threshold for employees exempt from overtime pay. The overtime rule would have increased the salary level for exempt white collar employees to $913 per week. Nearly two dozen governors and attorneys general challenged the overtime rule. Judge Mazzant sided with the plaintiffs, saying that the Department of Labor could not create a distinct standard for overtime eligibility. The Department of Labor is likely. Read More.

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The Auditor Strikes Back: Patent Costs Get an Update

As we reported in October, the Defense Contract Audit Agency (“DCAA”) Contract Audit Manual (“CAM”) was recently updated. One of the thirteen areas of cost updated related to patent costs. This topic is covered in Chapter 52 of the CAM, with the new version being separated into three key topics: 52-1, Allowability of Patent Costs 52-2, Patent Rights – Ownership by the Contractor and the Allowability of Associated Patent Costs 52-3, Special Requirements for Nonprofit Organizations Previously, the DCAA CAM addressed patent costs in Chapter 7-700, which was less than three pages in length on treatment of patent costs for allowability purposes. The. Read More.

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Betrayed from Within: Cherry Bekaert Teams with IDentrix to Deliver Powerful Webinar

Some of the biggest security breaches of our time have come from “malicious insiders” – employees and/or subcontractors with proprietary access to highly sensitive or classified data who then share that data outside their organization. Think Edward Snowden and more recently Harold T. Martin III. However, insider security breaches can happen unintentionally, too. Think the Sony breach, which may have been caused by an employee unknowingly clicking on a link in an email. Unsurprisingly, turnout was high when Cherry Bekaert’s own Susan Moser , Partner, and Neal Beggan , Principal, teamed up with Raj Ananthanpillai, CEO of IDentrix, to deliver a webinar on insider. Read More.

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The ASBCA Issues Two CAS Decisions

By: John Ford , Senior Consultant, Government Contractor Services Group Recently, the Armed Services Board of Contract Appeals (“ASBCA” or “the Board”) issued two decisions relating to the Cost Accounting Standards (“CAS”) that should be of interest to contractors. In the first decision, Raytheon Company, Space and Airborne Systems, ASBCA No. 58608 (August 19, 2016), the Board decided that the contracting officer had abused her discretion by failing to consider all the factors listed in Federal Acquisition Regulation (“FAR”) 9903.305 in determining whether increased costs to the government resulting from an accounting practice change were material. As a large contractor doing billions. Read More.

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Paid Sick Leave Now Required for Federal Contractors

By: Sara Crabtree , Senior Manager Effective November 29, 2016, the Department of Labor has issued regulations to implement Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors, signed by President Obama on September 7, 2015. The Executive Order requires certain parties that contract with the Federal government to provide their employees with up to seven days (56 hours) of paid sick leave annually. Executive Order 13706 was signed by the President with the intention of increasing efficiency and cost savings in the work performed by contractors for the Federal government. The theory is that providing access to paid sick leave. Read More.

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Fair Pay and Safe Workplace Executive Order

By: Eric Poppe, Manager After over two years of waiting, guidance was published on August 25, 2016, to enact the Fair Pay and Safe Workplace, Executive Order 13673. Signed by President Barack Obama on July 31, 2014, the Order went into effect October 25, 2016 and has three distinct parts that impact Federal contractors: Part 1- Discusses and provides guidance on how an agency should consider any labor violations by the contractor when making contracting decisions, and requires the contractor to disclose certain labor violations. Part 2- Requires new paycheck transparency provisions for workers on Federal contracts that provide employees. Read More.

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