NKilgo

Jacques, thank you! Your insights have been most helpful. The article and the associated case law you cited is right on point. I don't argue the limitations as expressed in the SCA and -43 clause, nor do I argue the fact that DOL cannot enforce State Minimum wage requirements. However, there is still the matter of the spirit and intent of the federal min wage requirements in the first place. And from a purely business perspective why would the federal government want to put a contractor who it chose to enter into a contract with for a service that it needs to be unsuccessful in staffing it? This is what can happen by creating an environment to where the contractor cannot obtain the labor needed to execute the contract because the federal gov elects not to pay the market rate (i.e. the state min wage) for labor. This is quite frankly nonsensical and not in keeping with the spirit and intent of the federal min wage laws in the forst palce. As contracting officers we are invested with an obligation to seek fair and reasonable outcomes. We shouldn't hide behind a regulation or FAR clause to keep from doing what is right. After all, the Federal Minimum Wage is just that.... the minimum. It is certainly appropriate to pay the higher state minimum wage (as many of you have pointed out) when the facts on the ground (i.e. staffing the project) support doing so. Thank you all for the discussion!

Recently, I have run into a wage issue where I hope the forum can lend some guidance: The issue is around those locals where the State Min wage exceeds the Fed minimum wage. As we all know, DOL requires contractors to pay the State min wage if/when it exceeds the Federal min wage. My problem is I'm being told that in a nutshell, the Federal Government is not required to adjust wages to pay the higher State min wage should it exceed the federal min wage. This just doesn't seem fair to me. How can we require a contractor to pay the higher State min wage when it increases but not entertain the contractor's REA for a price adjustment? Note: The contract iin question includes clause 52.222–43, Fair Labor Standards Act and Service Contract Act—Price Adjustment. I’ve tried to research the DOL website and the FAR for guidance that supports my position which is that the contracting officer may execute a Price Adjustment to meet the higher of the two minimum wages, either State or Federal, but I have had no success. Has anyone run into this problem before? How did you resolve it?