Supreme Court Opens Door to Broader Spectrum of Employment Discrimination Cases
In April 2024, the U.S. Supreme Court held that transferring an employee to a new position with the same rank and pay may constitute an adverse action under Title VII. The recent decision in Muldrow v. City of St. Louis, Missouri may have a substantial impact on employers. Employers nationwide should be aware of the new standard, implement internal processes to avoid discrimination claims, and understand how these changes will impact future personnel decisions. What Is Title VII? Most employers know that it is unlawful to . . . Read More
Managing Small Business Risk, Part I: Expect Litigation Even When It Seems Unlikely
No business wants to be investigated or charged by the government, sued by a competitor, or compelled to defend against an employment lawsuit. The risks of such litigation to any company are so predictable, though, that large businesses with in-house legal departments regularly employ attorneys focusing exclusively on these practices. Prior to the start of any specific dispute, lawyers in litigation and related roles guide business leaders and units in shaping internal policies and developing cultures of compliance. Indeed, the . . . Read More
When a Protégé Rebels Against Its Mentor: The Price Contractors Pay for Not Knowing Fiduciary Duties
What happens when a protégé rebels against its mentor? In a recent decision from the Eleventh Circuit, Yorktown Sys. Grp. Inc., v. Threat Tec LLC1, the court had to deal with such a question after Threat Tec, the protégé and small business in a joint venture, terminated its mentor, Yorktown, in order to acquire its workshare. In this opinion delivered by Judge Ed Carnes, the Eleventh Circuit affirmed the Northern District of Alabama’s decision to grant Yorktown a preliminary injunction . . . Read More
Newly Increased Health and Welfare Rates on SCA Government Contracts
The Department of Labor’s (DOL) Wage and Hour Division (WHD) has again issued new Service Contract Act (SCA) health and welfare (H&W) rates. In July 2024, WHD increased the prevailing H&W fringe benefits from a rate of $4.98 per hour to $5.36 per hour. Where a contractor is obligated to comply with Executive Order (EO) 13706 sick leave obligations, the rates have increased from $4.57 per hour to $4.93 per hour. Updated rates of $2.36 per hour (without the EO) . . . Read More
Texas Court Order Imperils FTC’s Forthcoming Non-Compete Ban
On July 3, 2024, the District Court for the Northern District of Texas stayed enforcement of the Federal Trade Commission’s (FTC) impending ban on non-compete agreements between employers and employees (the Rule) pending the outcome of ongoing litigation.1 While the injunction currently only applies to the parties in the case, the court has committed to publishing its final ruling on or before August 30, 2024, in advance of the Rule’s implementation date. The decision is a window into how the . . . Read More
Construction Industry Wage-and-Hour Issues: 6 Tips for Laying a Foundation of Compliance
The construction industry feeds a significant part of the U.S. economy, providing millions of short- and long-term jobs across the country on an annual basis. Since the passage of the Infrastructure Investment and Jobs Act in late 2021, the federal government has begun pumping the Congressionally-allocated $1.2 Trillion into transportation and infrastructure spending, with over $550 Billion allocated to new investments and programs. This federal re-investment into the construction industry, added to already-robust private construction spending, has led to increased . . . Read More
Broken Promises: The Government’s Ability to Trick Contractors and Get Away With It (Maybe)
As the government embraced the digital age in the years after COVID-19, its need for new software and technologies skyrocketed. This rapidly expanding procurement need presents great opportunities for businesses—both small and large—to satisfy the government’s needs. But every opportunity carries risks. In this blog, PilieroMazza explores a case that sheds light on (1) the risks posed by the ever-changing nature of software, (2) the government’s acquisition of new software using multi-option-year contracts, and (3) the legal enforceability of negotiated . . . Read More
Proactive Measures for Impending Increases to FLSA Salary Basis for White Collar Employees
Announced on April 23, 2024, the Department of Labor’s (DOL) Wage and Hour Division’s (WHD) final rule (Rule)—Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees—will begin impacting employers as soon as July 1, 2024. Under the Rule, to maintain employee white-collar exemptions, employers will need to ensure employees are paid a salary of $844 weekly or $43,888 annually ($132,964 annually for highly compensated employees). These thresholds will increase again on January 1, 2025, to $1,128 weekly . . . Read More
Coming Soon! CISA’s Proposed Rule on Government-wide Cybersecurity Reporting Requirements for Contractors
The Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) was enacted in 2022 with the primary purpose of preserving national security, economic security, and public health and safety. CIRCIA provides the Director of the Cybersecurity and Infrastructure Security Agency (CISA) authority to enact rules regarding various reporting requirements therein. In early April 2024, CISA released a proposed rule ( Rule ) with two significant requirements: (1) a 72-hour deadline to report covered cyber incidents and (2) a 24-hour deadline to report . . . Read More
Question the Questions and the Answers: Bid Protest Decision Highlights Need to Clarify Ambiguities Prior to Bidding
Many solicitations for government contracts provide prospective contractors with the opportunity to ask questions. In some instances, the government’s answers to those questions create additional questions. When that’s the case, it’s crucial to seek clarification early; waiting to see how the procurement unfolds can have drastic consequences, leaving contractors with no recourse. A recently issued bid protest decision from the U.S. Court of Federal Claims—Eagle Hill Consulting, LLC v. United States [1] —highlights this important point. In Eagle Hill, the Federal . . . Read More