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FMG Law Blog Line

Posts Tagged ‘contractors’

Contractors are Under Greater Scrutiny for Compliance with Davis Bacon Requirements

Posted on: July 9th, 2013

By: Kamy Molavi

 

Recently, we at FMG’s construction law group have seen several cases involving the Davis Bacon Act.  Davis Bacon is the federal law that requires all workers to be paid the “prevailing wages” on federal contracts.  The law also applies to a non-federal contract if the project is at least partially paid for from certain federal funds.

Our clients in the recent cases are either general contractors or subcontractors.  The Department of Labor claimed our clients’ first-tier or second tier subcontractors had failed to pay the prevailing wages, and sought to collect the shortfall from our clients even though the unpaid or underpaid workers were not employees of the clients.

This indirect liability is not new.  What seems to be new is the prevalence of DOL investigations in the past two years.  Some attribute the recent focus to the political climate, and others blame unions for instigating the investigations.  We do not know what is causing the recent investigative vigilance, but the trend is undeniable.

If the Davis Bacon Act applies, contractors and subcontractors cannot rely on certified payrolls from downstream employers.  They should take steps to understand the wage requirements of their projects, especially the classification of workers needed on the job, and the proper rate for each classification.  It is also prudent to make sure all employers on the project maintain good time records, and to the extent feasible, also to monitor payments to all workers.

Employer Reporting Deadlines Fast Approaching

Posted on: September 20th, 2012

By: Ben Mathis

For many employers, the deadline to file various reports to federal agencies regarding their employers is September 30th.  This includes filings for EEO-1, the Employer Information Report, and the Veterans Employment Report, commonly known as the VETS-100 or VETS-100A.  The EEO-1 filing requirement applies to private employers with 100 or more employees, as well as certain federal government contractors with 50 or more employees.  The filing includes delineating an employer’s work force by job categories and race, ethnicity, and sex.  The EEOC has an online filing system which may be found at http://www.eeoc.gov/employers/eeo1survey/index.cfm.

Federal contractors holding contracts valued at $25,000 or more and entered into prior to December 1, 2003, must file VETS-100 reports.  A contractor with a federal contract in the amount of $100,000 or more and entered into or modified as of December 1, 2003, must file a VETS-100A report.  Many employers will need to submit the VETS-100 and the VETS-100A reports if they have contracts entered into after December 1, 2003.  The Department of Labor has sample report forms at http://www.dol.gov/vets/vets-100.html.