CPAs and Advisors with Your Growth in Mind

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.

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New Labor Compliance Requirements Coming Soon

In July 2014, President Obama signed Executive Order 13673, Fair Pay and Safe Workplaces, which is scheduled to go into effect sometime this spring. The goal of the order is to ensure that government contractors who do business with the Federal government comply with required labor laws and promote safe, healthy, fair and effective workplaces. Prior to the award of a contract for goods and services, including construction where the estimated value will exceed $500,000, an offeror will be required to certify that it is in compliance with a variety of labor laws. Such laws include the Fair Labor Standards. Read More.

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Overtime on Government Contracts

By: John Ford , Senior Consultant, Government Contractor Services Group The use of overtime to perform government contracts can be a contentious topic, particularly in regard to uncompensated overtime. This article will address the following issues in regard to overtime on government contracts: The basic statutory requirements concerning overtime including what is an overtime premium; Overtime on cost reimbursement contracts; Overtime on time and materials (T&M) contracts; Overtime on contracts subject to the Service Contract Act (SCA); and Uncompensated overtime. The primary statute addressing overtime is the Fair Labor Standards Act (FLSA; “the Act”). The FLSA is administered by the Department of. Read More.

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Proposed Rule Prohibits Award of Defense Contracts for Companies Who Violate the Fair Labor Standards Act

If your business violated the Fair Labor Standards Act (“FLSA”) within the past five years, your company may be barred from receiving new defense contracts for a period of one year. The Department of Defense Appropriations Act (H.R. 4870) for fiscal year 2015  is expected to provide funding of $491 billion for FY 2015, which is a modest one percent increase from the prior year enacted budget. Section 10030 of the act is difficult to interpret, but essentially states that any person who has violated the FLSA within five years may not receive a contract using funds available by the. Read More.

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