Category: Regulatory Compliance and Ethics

Human Trafficking Regulations to be Updated to Define “Recruitment Fees”

Justin A. Chiarodo and Stephanie M. Harden

In the latest regulatory action targeted at human trafficking, the Federal Acquisition Regulatory Councils (“FAR Councils”) on May 11, 2016 issued a proposed rule to include a sweeping new definition of the term “recruitment fees.” The proposed definition would cover nearly any conceivable charge related to recruiting, hiring, and onboarding of employees, no matter the location of the employee, the skill level of the job, or customary business practices in the industry. Contractors should pay close attention, given that the rule also makes them responsible for recruitment fees collected by third parties, including subcontractors at all tiers, recruiters, and staffing firms.

Recognizing the far-reaching consequences the rule will have, the FAR Councils have flagged key open questions for contractors to comment upon. Given the potential sweeping change, contractors should think carefully about how the proposed rule will impact their hiring practices. Continue reading “Human Trafficking Regulations to be Updated to Define “Recruitment Fees””

DOL’s Proposed Rule on Paid Sick Leave for Federal Contractors Will Significantly Increase Costs and Contract Administration Requirements for Contractors

Christian N. Curran

In February the Department of Labor (“DOL”) published a proposed rule implementing the mandate of Executive Order 13706 to require that all federal contractors provide paid sick leave to their employees.  The rule will significantly impact government contractors.  DOL estimates that the rule will require the provision of paid sick leave to over 800,000 contractor employees, over half of which currently have no such benefits at all.  The rule will also require extensive recordkeeping and related tracking efforts for compliance and reporting purposes which will significantly increase administrative burdens for contractors at substantial cost.  The proposed rule will apply to all contracts solicited or awarded after January 1, 2017.  The key provisions of the proposed rule are as follows.

  • Amount of Sick Leave: The rule requires that one hour of sick leave be provided for every thirty hours of work on covered contracts, for a minimum total of 56 hours per year.
  • Covered Contracts: The proposed rule would apply to several categories of contracts, including construction contracts covered by the Davis-Bacon Act, service contracts covered by the Service Contract Act, concessions contracts, and contracts regarding federal property or lands and relating to services for federal employees, dependents, or the public.

Continue reading “DOL’s Proposed Rule on Paid Sick Leave for Federal Contractors Will Significantly Increase Costs and Contract Administration Requirements for Contractors”

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