More Updates for Government Contractors
Many things of interest to government contractors happened this month, beyond the vaccination guidance discussed elsewhere in this E-Update. These include the following:
- Affirmative Action Program Verification: The Office of Federal Contract Compliance Programs’ proposed Affirmative Action Program Verification Initiative has been approved by the Office of Management and Budget, meaning that the OFCCP can move forward with its plan to implement a portal through which contractors will make annual certifications of compliance with its AAP obligations. Contractors under audit will also be able to submit their AAPs through the portal.
- Minimum Wage Increase: Executive Order 13658 established a minimum wage rate, increased annually, for all covered workers performing work on construction contracts covered by the Davis-Bacon Act (DBA); service contracts covered by the Service Contract Act (SCA); contracts to provide concessions (food, lodging, fuel, etc.) on federal property; and contracts to provide services (e.g. child care, dry cleaning, etc.) in federal buildings. The DOL has announced the applicable minimum wage increase effective January 1, 2022: $11.25 per hour, with a tipped wage rate of $7.90 per hour. In addition, covered contractors must update the required minimum wage poster as of that same date, which can be found on the DOL website (only the current poster is available now; check again on January 1, 2022 for the updated poster). Note, however, that any contracts that are entered into, renewed or extended on or after January 30, 2022 will be subject to a $15.00 per hour minimum wage rate, as discussed in our April 2021 E-Update.
- Updated Census Information for AAPs: The OFCCP has issued a notice to contractors that updated census information must be used for written affirmative action programs commencing on or after January 1, 2022.
- Pay Data Collection: As contractors may recall, the EEO-1 form was revised to temporarily require the submission of pay data (Component 2) in addition to the usual workforce demographic data (Component 1). The (Trump) OFCCP had previously announced that it would not use this data because it was of limited utility. However, the OFCCP has now announced that its previous declaration was premature, and that it will now analyze the data for possible insights into pay disparity issues across industries and occupations and strengthen its efforts to combat pay discrimination.
- New Construction Guide: The DOL’s Wage and Hour Division published the Davis-Bacon Wage Determination Conformance Request Guide, of relevance to construction contractors. This Guide explains the information and construction types contained in wage determination, as well as when new classes of laborer or mechanics may be requested to be added to a published wage determination for a specific contract.