OFCCP To Begin VEVRAA-Focused Reviews

The Office of Federal Contract Compliance Programs (OFCCP) released its initial scheduling list for reviews focused solely on compliance with the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA). The VEVRAA-focused reviews are meant to ensure that federal contractors and subcontractors comply with their affirmative action and nondiscrimination obligations, assuring equal employment opportunities for veterans.

Under VEVRAA, employers doing business with the federal government are required to take affirmative action to recruit, hire, and promote categories of veterans covered by the law, including disabled veterans and recently separated veterans. Additionally, it is unlawful for federal contractors and subcontractors to discriminate against protected veterans when making employment decisions about hiring or firing, pay, benefits, job assignments, promotions, layoffs, training, and other employment-related activities.

The OFCCP is expected to conduct 500 reviews that will include a comprehensive review of employment practices and a contractor’s policies as they relate specifically to VEVRAA. Contractors can check-out the Corporate Scheduling Announcement List in the OFCCP’s FOIA Library, https://www.dol.gov/ofccp/foia/foialibrary/index.html, to find out if OFCCP has scheduled them for a VEVRAA-focused review.

President Trump Revokes Executive Order 13495

Last week, President Trump revoked Executive Order (Order) 13495, the Nondisplacement of Qualified Workers, which applied to contracts under the Service Contract Act.

Previously Order 13495, had required that successor federal contractors, in certain circumstances, offer a right of first refusal of employment to employees working under the predecessor contract.

Agencies were instructed to implement the revocation immediately. It included instructions for all agencies and executive departments to rescind any orders, guidelines, rules, programs, or policies implementing or enforcing the previous Order. The Secretary of Labor, who was formerly responsible for ensuring compliance, was also instructed to terminate any investigations or compliance actions related to the last Order 13495.

https://www.whitehouse.gov/presidential-actions/executive-order-improving-federal-contractor-operations-revoking-executive-order-13495/

Erica Wolff Joins Fringe Benefit Group as Vice President of Human Resources

Fringe Benefit Group, an industry leader in the design, implementation and administration of benefit plans for hourly workers, today announced that Erica A. Wolff has joined the company as vice president of human resources (HR).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191104005756/en/

Wolff brings extensive experience in team leadership and benefits administration to Fringe Benefit Group, where she will oversee employee relations and work alongside the company’s executive management committee to ensure adherence to business strategies and regulatory measures.

“Erica is a fantastic addition to our growing team,” said Brian Robertson, executive vice president of Fringe Benefit Group. “In addition to implementing and managing our HR initiatives, she’s also highly experienced at working with part-time and hourly workers, which is the market segment we serve. She brings a wealth of experience and industry knowledge to the table and we are already benefitting from her insight and contributions.”

Fringe Benefit Group offers plan design, compliance, claims and benefits administration for insured and self-insured major medical, retirement, Minimum Essential Coverage (MEC), fixed indemnity and specialty benefits plans (e.g., dental, vision, life and disability coverage) to companies with hourly employees via its two national brands, The Contractors Plan and The American Worker. Fringe Benefit Group works closely with more than 600 brokers across the U.S. to provide working Americans with quality benefits.

Earlier this year, Fringe Benefit Group acquired Century Healthcare (CHC), a north Texas-based company specializing in customized benefit plans for employers of all sizes with hourly employees – creating one of the nation’s largest providers of limited benefit medical plans. The combination brought together two highly regarded Texas companies specializing in ACA-compliant, turnkey solutions for employers with hourly employees.

Wolff joined Fringe Benefit Group from Pitney Bowes in Austin. She spent 16 years at the Intercontinental Stephen F. Austin hotel, most recently as Director – Human Resources & Training, where she oversaw HR operations and collaborated with executive teams to outline business strategies. She also previously held director level HR and/or accounting positions at Easter Seals-Central Texas, The Driskill Hotel, The Mansion on Turtle Creek, and ZuZu Incorporated. She is a member of the Society of Human Resource Management (SHRM), the Austin Human Resource Management Association (AHRMA) and past president and treasurer of the Capitol Hotel Human Resources Management Association.

About Fringe Benefit Group

Fringe Benefit Group and its affiliate companies have designed and administered programs that simplify the benefits process for employers with hourly workers since 1983. Through its nationwide network of independent brokers and agents, Fringe Benefit Group offers products from the industry’s leading carriers and is recognized for its full-service suite of tools and services designed specifically for employers with hourly and part-time workers. For more information, visit www.fbg.com, www.thecontractorsplan.com or www.theamericanworker.com.

August 2019 Public Construction Spending Increased

The U.S. Census Bureau announced total construction spending for August 2019 was at a seasonally adjusted annual rate of $1,287.3 billion, a 1.2 percent increase over July. However, compared to the same period last year, there was a 1.8 percent decrease.

While private construction spending in August was $955 billion, it was nearly the same as the July estimate. But when compared to the previous year, private spending decreased 4 percent. However, public construction spending was $332.3 billion, which was relatively consistent compared to July, but 4.6 percent more than one year ago.

There were several contributors to the growth in public construction spending over the past year; these include highway and street construction, sewage and waste disposal, transportation, and public safety. More information may be found at:

https://www.census.gov/construction/c30/pdf/release.pdf

Assembly Bill 5 Goes Into Effect On January 1, 2020

Assembly Bill 5, which strengthens California’s rules regarding the classification of workers and independent contractors, was signed into law by Governor Newsom on September 18, 2019 and goes into effect on January 1, 2020. AB 5 codifies the California Supreme Court decision Dynamex Operations West, Inc. v. Superior Court of Los Angeles.

The misclassification of employees has been a nationwide problem for years. The U.S. Department of Labor, as well as many states, have taken steps to limit inappropriate misclassification of workers as independent contractors. Workers misclassified as independent contractors are denied worker protections such as minimum wage and overtime. They may also be denied the employer portion of payroll taxes and benefits.

To curtail misclassification, the California legislature adopted AB 5 which codifies Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) which presumes a worker is an employee unless an employer satisfies a three-factor test.

To be considered an independent contractor, the test requires the employer to demonstrate the person:

1. Is free from the control and direction of the employer involving the performance of their work
2. Performs work that is outside the usual business of the employer, and
3. Is customarily engaged in an independent trade, occupation, or business

AB 5 has been opposed by companies that typically treat workers as independent contractors instead of employees, claiming that it would hurt people who make a living doing gig work in the new economy. The impact of AB 5 is not limited to gig workers, so any employer in California that classifies workers as independent contractors should review their classification procedures before January 1, 2020.

FBO.gov is Moving to SAM.gov

Federal Business Opportunities (FBO.gov) will start transitioning to SAM.gov on November 8th. Before being decommissioned, FBO.gov functionalities will transition into beta.SAM.gov the first quarter of FY 2020. The new beta.Sam.gov is expected to have the same federal business opportunity capabilities that exist today as well as many additional improvements.

The process of building the beta.SAM.gov and developing the improvements was a collaborative effort between users and stakeholders. Enhancements to the new beta.SAM.gov include the ability to search for an opportunity that provides more precise results, ability to manage alerts and set up notices more efficiently, offering a more user-friendly design and offering options such as viewing previous versions with one click.

Many of the features and functions used in FBO.gov will have new names once they migrate to beta.SAM.gov.

These include:

• Watchlist will become Follow
• Search Agent will become Saved Search
• Archived will become Inactive

For more information about the move to beta.SAM.gov, please visit the fact sheet at

https://www.gsa.gov/cdnstatic/FBO_Is_Transitioning_to_Beta_Factsheet_%281%29.pdfh

OFCCP Hires New Ombudsman and Launches Contractor Assistance Portal

The Office of Federal Contract Compliance Programs (OFCCP) announced the appointment of Marcus Stergio to fill the Ombudsman roll in the agency’s national office. The same day, OFCCP also announced the launch of the Contractor Assistance Portal, an online help desk. OFCCP Director Craig Lean noted these two steps focused on OFCCP’s broader initiative to improve transparency and their compliance assistance activities.

Stergio brings a breadth of experience, having served as the primary administrator of the dispute resolution process for several multi-national organizations and institutes. His first order of business is to work to resolve disputes raised by contractors, in conjunction with regional and district OFCCP offices. As such, he will work to assure that OFCCP is treating stakeholders fairly and in a consistent manner, while providing an independent perspective and facilitating communication between external stakeholders and OFCCP.

The launch of the Contractor Assistance Portal is a move to provide contractors and stakeholders more access to compliance assistance resources. The portal is an online help desk that helps federal contractors with laws and regulations enforced by OFCCP. The Portal was created in coordination with the U.S. Department of Labor’s Office of Compliance Initiatives to allow users to ask questions freely and access valuable reference materials. 

OFCCP expects that contractors and stakeholders will find both the Ombudsman and the contractor assistance portal useful in assessing and implementing affirmative action compliance obligations.

Maryland Bill Takes Effect; Payment of Employee Healthcare Expenses

Contractors and subcontractors bidding on Maryland state construction projects should be aware of the new “Responsible Payment of Employee Health Care Expenses” law which took effect July 1, 2019.  The bill requires that all bidders, contractors, or subcontractors on a State-funded construction project to pay certain employee health care expenses.

“Employee health care expenses” are any costs for health care services, as defined by the bill unless the employee has coverage under another plan. State contractors will need to certify that they pay aggregate employee health care expenses of at least 5% of the wages; or that the employer pays 50% or more of the required premium necessary to obtain coverage by a credible health insurance plan. The certification process is less stringent before July 1, 2020.

The change does not apply to small businesses with fewer than 30 employees as well as minority business enterprises.

Employers Should Prepare for A Final Overtime Rule

Under the new leadership of Acting Labor Secretary Patrick Pizzella, the Department of Labor (DOL) is expected to move quickly on the final overtime rule. Understanding that once 2020 arrives all focus will turn to the elections, Pizzella has spoken of his commitment to focusing on what the department can realistically achieve during the remainder of this term.

Earlier this year, the DOL published a proposed rule that would make nearly a million more workers eligible to receive overtime pay. According to a Labor Department official, the final overtime rule is anticipated sometime between Labor Day and Thanksgiving.

Under the current rule, employees subject to the Fair Labor Standards Act with a salary of less than $23,660 per year ($455 per week) are entitled to overtime if they work more than 40 hours per week. Employers should pay particular attention to the final overtime rule as the DOL had proposed raising the salary threshold to $35,308 per year ($679 per week).

The proposed rule is a compromise between the current $23,660 threshold and the $47,476 cutoff that was adopted by President Barack Obama’s administration in 2016 but which later was blocked.

Though there is still time before the proposed overtime rule is expected to go into effect, employers should review current policies.

U.S. DOL Announces SCA Fringe Rate Changes

The prevailing health & welfare fringe benefits issued under the McNamara-O’Hara Service Contract Act (SCA) awarded before July 5, 2019 with Option Years on or after July 5, 2019 will utilize the new fringe rate of $4.54 per hour.

Additional SCA Health & Welfare Fringe Benefit Rate Information

All service contracts that contain paid sick leave (EO 13706) will utilize the lower fringe rate of $4.22 SCA health & welfare benefit rate.

For more information: Click Here To Read The Full Memo