Increase in the federal minimum wage fair labor

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Increase in the Federal Minimum Wage (Fair Labor Standards Act) – The federal minimum wage increased to $6.55 per hour effective on July 24 th , 2008. Although the rate is relatively low compared to most Service Contract Act wage determination rates, it may trigger FLSA price adjustment request under FAR 52.222-43/44. If so, KOs are reminded to ask for documentation from the contractor that substantiates the contractors entitlement under the FAR clause(s). Also, when evaluating any such proposal, the date of initial contract award must be considered. If the contractor’s proposed pricing and contract award was after enactment of this minimum wage law change (25 May 2007), then the contractor’s proposed pricing should already include this increase and an adjustment to contractor price would not be allowable under the clause. Forms A convenient document is now contained on the Navy Acquisition web site which will provide quick and easy access to forms needed to process and complete labor standards actions under both Service Contract Act and the Davis-Bacon Act. Here’s the link . Training Time Thank you and congratulations to Contracting Officials at the following locations for participating in and completing contract labor standards training: NAVAIR – Orlando Detachment Marine Corps Community Service Program – National Conference The Navy Labor Advisors welcome the opportunity to conduct labor standards training for your Contracting Office. Please contact us and let us know how we can accommodate your training needs. The training is free (other than possible TDY funding for the Labor Advisor). We look forward to hearing from you. Don’t need a “full blown” training
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session? – We can arrange to tailor labor standards training on a specific topic, such as SCA price adjustments, collective bargaining agreement issues, or DBA compliance enforcement, etc. Q&A “Q&A” will be a section of the newsletter that will allow readers to have input into the newsletter. We have noticed during labor standards training sessions that contracting personnel often ask the tough questions that require us to be more than “one slide deep”. We would like to share those questions (and answers) of general interest with others in the contracting community. Just e-mail your question to Frank Dean ( [email protected] ) or Kim Hussey ([email protected]). We will then share the question and answer in our newsletter. Identities will be kept anonymous. We look forward to your challenging and insightful questions. THIS NEWSLETTER’S QUESTION: Question: I’m issuing a solicitation for a follow-on contract for training and maintenance of training simulators that requires the application of the Service Contract Act (SCA). I have noticed that one of the required clauses of the contract is FAR 52.222- 42 (as prescribed by 22.1006(b) ). I am also including an appropriate Department of Labor (DOL) wage determination. Doesn’t the incorporation of the wage determination make insertion of this 52.222-42 clause and the accompanying information unnecessary?
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