In order to maintain compliance and mitigate risk please contact your HR Consultant to see how these regulations may apply to your organization.
As we reported previously, President Biden has updated the minimum wage for employees working for Federal Contractors or subcontractors to $15.00 per hour. The Executive Order updates the rate for those working on or in connection with a Federal Government contract or contract like instruments for the following:
Procurement for services or construction; for services covered by the Service Contract Act; for concessions; related to Federal Government in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public; and for wages governed by the Fair Labor Standards Act, the Service Contract Act, or the Davis-Bacon Act and at the thresholds or micro-purchase thresholds specified in those statutes.
The Executive Order is effective with new contracts or extended/amended contracts beginning January 30, 2022. Executive departments and agencies will ensure that contracts include a clause related to the minimum wage. Contractors will have to incorporate this language into lower-tier subcontracts.
Regulations will be issued by November 24, 2021 to implement the requirements of the order. In addition, beginning January 1, 2023 and annually, thereafter, the minimum wage will be increased by the annual percentage increase in the Consumer Price Index. Stay tuned for additional regulatory updates from SWHRC.
Families First Coronavirus Response Act (FFCRA)
Under the American Rescue Plan Act (ARPA), which was enacted on March 11, 2021, a private employer with under 500 employees can voluntarily extend FFCRA paid leave from April through September 30, 2021 and still receive a tax credit if they meet the requirements under the Act. ARPA also provides for tax deductions for employers with less than 500 employees who offer the FFCRA COVID sick leave for employees to go get their vaccines and to pay employees if they have to miss work due to side effects from the vaccine. Please see this link for the Act and additional requirements.
Per the Equal Employment Opportunity Commission (EEOC) “the EEO-1 Component 1 report is a mandatory annual data collection that requires all private sector employers with 100 or more employees, and federal contractors with 50 or more employees meeting certain criteria, to submit demographic workforce data” as required under section by Title VII of the Civil Rights Act of 1964, as amended, and under the code of Federal Regulations (CFR).
On May 8, 2020 the EEOC delayed the opening of the 2019 Data Collection due to the COVID-19 public health emergency. Because of the continuing impact of the pandemic and the requirement to submit two years of data, the EEOC is extending the data collection period from 10 weeks to 12 weeks. The EEOC announced the deadline for submitting both the 2019 and 2020 data for this year will be July 19, 2021.
President Biden signed an executive order on Tuesday, April 27, 2021 to increase the minimum wage to $15 per hour for federal contractors. We are awaiting the executive order to be published but federal agencies will be including the language in new contracts by January 30, 2022. The higher wage would have to be implemented by March 30, 2022.
SWHRC can help by providing training to your organization and can provide trainings in a virtual format. Contact us today for more information on what we can provide for your organization.
Written by | Magdalena Vigil-Tullar
HR Consultant | MBA, SPHR, SHRM-SCP, CLRP
Phone: 505-270-7494 | Email: firstname.lastname@example.org