Congress has not passed crucial funding bills for the start of Fiscal Year 2026. If Congress fails to act by September 30, the government may be forced to shut down for lack of funding. In anticipation of that possibility, agencies government-wide are preparing for a shutdown, and contractors and companies that work with the government should do so as well. Our team is ready and available to help advise companies through the shutdown process.Continue Reading Common Questions—and Answers—About A Government Shutdown
State Attorneys General Issue Multistate Guidance on Diversity, Equity, Inclusion, and Accessibility
On February 13, 2025, a coalition of sixteen state attorneys general issued a “Multi-State Guidance Concerning Diversity, Equity, Inclusion, and Accessibility Employment Initiatives” (the Guidance). Led by Attorney General Andrea Campbell of Massachusetts and Attorney General Kwame Raoul of Illinois, and joined by the Attorneys General of Arizona, California, Connecticut, Delaware, Hawaii, Maine, Maryland, Minnesota, Nevada, New Jersey, New York, Oregon, Rhode Island, and Vermont, the Guidance is a direct response to concerns from the private sector in the aftermath of President Trump’s recent Executive Order 14173, which directed federal agencies “to encourage the private sector to end illegal discrimination and preferences, including DEI.” The Guidance clarifies “the state of the law for businesses, nonprofits, and other organizations operating” in their respective states.Continue Reading State Attorneys General Issue Multistate Guidance on Diversity, Equity, Inclusion, and Accessibility
Executive Order Underpinning SCA Contractors’ Right of First Refusal Rescinded By Trump Administration
On Inauguration Day, President Trump issued a flurry of executive orders. Among the first he signed was the Initial Rescissions Of Harmful Executive Orders and Actions Executive Order (the “Rescinding EO”). This directive rescinded 78 executive orders issued by the Biden Administration. The revocation of one in particular, Executive Order 14055 of November 18, 2021 Non-displacement of Qualified Workers Under Service Contracts (the “EO 14055”), will have an immediate impact on federal contractors performing and bidding on Service Contracts.Continue Reading Executive Order Underpinning SCA Contractors’ Right of First Refusal Rescinded By Trump Administration
Nationwide Injunction Halts Key Provisions of Davis-Bacon Act Regulations
On June 24, 2024, the U.S. District Court for the Northern District of Texas issued a nationwide preliminary injunction, stopping the U.S. Department of Labor (“DOL”) from enforcing three key elements of regulations related to the Davis-Bacon Act and Related Acts (“DBA” or “Act”). The court order issued in Associated General Contractors v. U.S. Department of Labor will provide significant comfort and certainty to contractors that perform work on federally funded construction projects.Continue Reading Nationwide Injunction Halts Key Provisions of Davis-Bacon Act Regulations
Harmonizing AI with EEO Requirements: OFCCP’s Blueprint for Federal Contractors
Now more than ever, federal contractors find themselves at the intersection of innovation and regulation, particularly in the realm of Artificial Intelligence (AI). AI is now incorporated into a broad range of business systems, including those with the potential to inform contractor employment decisions. For that reason, the Office of Federal Contract Compliance Programs (OFCCP) has issued new guidance entitled “Artificial Intelligence and Equal Employment Opportunity for Federal Contractors” (the “AI Guide”). OFCCP issued the AI Guide in accordance with President Biden’s Executive Order 14110 (regarding the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence”), which we reported on here. The AI Guide provides answers to commonly asked questions about the use of AI in the Equal Employment Opportunity (EEO) context. The AI Guide also offers “Promising Practices,” which highlight a number of important considerations for federal contractors. Focusing on federal contractors’ obligations and attendant risks when utilizing AI to assist in employment-related decisions, the AI Guide also provides recommendations for ensuring compliance with EEO requirements while harnessing the efficiencies of AI.Continue Reading Harmonizing AI with EEO Requirements: OFCCP’s Blueprint for Federal Contractors
A Brief Primer on the Impact of a Federal Government Shutdown
I. Introduction
A U.S. federal government shutdown creates a number of direct and indirect consequences that impact U.S. companies, individuals and virtually every aspect of the U.S. economy. Although the federal government has experienced previous lapses in funding that have led to shutdowns of all or part of the federal government, the current funding impasse and impending shutdown raise a number of unique and unprecedented questions for government workers, government contractors and businesses, and the public at large.
A U.S. federal government shutdown can have serious consequences because of the size of federal spending and its impact on the U.S. economy. The U.S. government spent $6.27 trillion dollars in fiscal year 2022 which amounted to approximately 25% of total gross domestic product. The federal government funds over 2,200 federal assistance programs for the public. There are over 2.2 million federal employees who will be directly impacted in some way by a federal government shutdown with the majority facing a furlough of an undetermined length. There are over 11 million U.S. federal government contracts signed every year and they may be impacted by a shutdown. Finally, the federal government spends approximately $1.2 trillion dollars every year, or about 19% of all federal spending, on programs that fund or are related to the states.
The purpose of this Client Alert is to explain the consequences of a government shutdown in general, why this one may be different, and to also offer insights to the regulated industries, government contractors and others on what to expect this time around. Our team is ready and available to help advise companies through this shutdown process.Continue Reading A Brief Primer on the Impact of a Federal Government Shutdown
New Registration Requirement for Contractors and Subcontractors Performing Public Works and Covered Private Projects in New York
On December 30, 2022, New York Governor signed into law Labor Law Section 240-i, establishing a registration system for contractors and subcontractors engaged in public work and covered private projects in New York. This law will require contractors to register with the New York State Department of Labor (the “Department of Labor”) every two years, by submitting various disclosures about their businesses, in order to ensure that contractors do not have previous labor law violations, and will abide by New York labor laws and regulations, including prevailing wage requirements. The Department of Labor will establish and maintain a public on-line system where registrations and disclosures are available. Continue Reading New Registration Requirement for Contractors and Subcontractors Performing Public Works and Covered Private Projects in New York
Agencies Directed to Designate Labor Advisors for Federal Contract Labor
This week, the Department of Labor (DOL) and Office of Management and Budget (OMB) issued a memo directing all agencies to designate “agency labor advisers” who are responsible for advising agencies on “Federal contract labor matters.” FAR Part 22 contemplates the appointment of “agency labor advisors,” and requires contractors to contact them about potential labor
Job Corps Center Prime Contractors Will Now be Subject to the Service Contract Act Requirements
The Department of Labor (“DOL”) recently announced in a July 29, 2022 Change Order notice that the Wage and Hour Division (“WHD”) had revised the Field Operations Handbook (“FOH”) by deleting the exemption under the Service Contract Act (“SCA”) for federal contracts to operate Job Corps Centers. Prime contractors and subcontractors operating these centers will now be subject to the SCA and FAR 52.222-41, Service Contract Labor Standards, according to DOL.
The practical effect of this change is that covered contractors must pay the minimum wages and “bona fide” fringe benefits mandated by the SCA to all covered workers, which includes workers who are “non-exempt” under the Fair Labor Standards Act. The required wages and fringe benefits for these workers are set forth in wage determinations that are incorporated into the applicable contract by the contracting agency. Higher tier contractors must also flow down the SCA Clause (FAR 52.222-41) and all applicable wage determinations to lower tier contractors. All covered contractors must meet the SCA’s posting and recordkeeping requirements. See 29 CFR 4.183, Employees must be notified of compensation required; 29 CFR 4.184, Posting of notice; 29 CFR 4.185, Recordkeeping requirements. Continue Reading Job Corps Center Prime Contractors Will Now be Subject to the Service Contract Act Requirements
Executive Order Provides for Nondisplacement of Certain Workers Covered by the Service Contract Act
On November 18, 2021, President Biden signed an executive order, “Executive Order on Nondisplacement of Qualified Workers Under Service Contracts” requiring, in most instances, that federal Service contracts and solicitations for such contracts include a clause which mandates that the awardee (and its subcontractors) of a follow-on Service contract for “same or similar