President Biden Issues Executive Order on Increasing the Minimum Wage for Federal Contractors

On April 27^th, President Biden signed a new executive order (EO) requiring federal contractors and subcontractors to pay a $15.00 minimum wage to those individuals working on or in connection with federal contracts. Highlights include:

• The new EO increases the hourly minimum wage for federal contractors to $15.00 by January 2022
• The EO requires the minimum wage to be indexed to an inflation measure
• The EO eliminates the tipped minimum wage by 2024 for employees working on or in connection with federal contracts
• The EO restores minimum wage protections to outfitters and guides operating on federal lands
• The EO ensures a $15 minimum wage for federal contract workers with disabilities
• The EO will affect a broad range of employers, including those with federal procurement contracts of at least $10,000.

Learn more about the Executive Order on Increasing the Minimum Wage For Federal Contractors here.

U.S. Department of Labor (DOL)

Return of Pre-Litigation Liquidated Damages

The U.S. Department of Labor’s (DOL) Wage and Hour Division announced that, effective April 9, 2021, it had “return[ed] to pursuing pre-litigation liquidated damages” in lieu of litigation. It will leverage this enforcement tool as appropriate. You can read more about the return of this practice here.

Independent Contractor Rule

The DOL is proposing to withdraw the Department’s “Independent Contractor Status under the Fair Labor Standards Act” rule that was delayed to May 7, 2021. The public comment period is not being extended past April 12. You can read more here and learn about independent contractors vs. employees at our upcoming webinar in May.

Tip-Sharing Rule

As a reminder, regulations prohibiting managers from keeping tips and allowing employers to include non-tipped workers in certain tip pools will take effect April 30 as scheduled. If an employer does not take a tip credit, it may allow workers such as cooks or dishwashers, to share in a mandatory tip pool. Employers, managers, and supervisors are explicitly prohibited from keeping tips received by employees. Learn more here.

U.S. Department of Homeland Security (DHA)

As previously shared in a client news alert, the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) extended the flexibility in complying with requirements related to Form I-9, Employment Eligibility Verification, due to COVID-19. until May 31, 2021.

New guidance was included that as of April 1, 2021 the requirement that employers inspect employees’ Form I-9 identify and employment eligibility documentation in-person applies only to those employees who physically report to work at a company location on any regular, consistent, or predictable basis.

U.S. Equal Employment Opportunity Commission (EEOC)

The EEOC is expected to update its coronavirus guidance to include information on vaccine incentives. With vaccine rollout in the U.S. in full swing it has been long awaited. You can review their guidance to date at the link below and reach out to your FrankAdvice HR Consultant as needed.

What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws