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CHILINVLN

29 C.F.R. § 4.145(b)

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I have a contract where the Government doesn't seem to be open to updated a wage determination (SCA employees).  It's my understanding that this CFR requires them to do so every two years at minimum.  Generally, WD's are updated on the option period.  I was interested in some feedback on if this CFR needs to be incorporated into the contract to be enforced, or if it applies regardless, and what possible courses of action I can pursue to resolve.  I don't want my company to have increased liability, but I'm also trying not to piss off our client.

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Regardless of what the Government (as in Contracting Activity) wants to do or not do remember your company is responsible for meeting the letter of the law (sorry just the way I worded it) with regard to compliance with the wage acts.   Do what you think is best pursuant to your read of the labor laws.  And if in doubt the alternative resource is the USDOL.  Yeah I know I always get comments that they never respond but be persistent.   You are on the right track as to questioning the agency's inaction.  

As an aside this may or may not answer your question but I always found it as a good resource and provide it as an example of what you can find with some effort on the internet with regard to questions about USDOL compliance.

https://www.dol.gov/agencies/whd/field-operations-handbook/Chapter-14

 

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7 minutes ago, CHILINVLN said:

Good link and I appreciate your feedback.

As an afterthought and with apology I guess I did not answer your proposed solution directly.    Pursuant to the FAR, FAR Clause 52.222-41 is to be in every contract to which it is applicable (generally service contracts) and at paragraph (c)(3)  states -

(3) Adjustment of compensation. If the term of this contract is more than 1 year, the minimum monetary wages and fringe benefits required to be paid or furnished thereunder to service employees under this contract shall be subject to adjustment after 1 year and not less often than once every 2 years, under wage determinations issued by the Wage and Hour Division."

The CFR is in the contract or should be pursuant to the above.

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My understanding is that you have an extended multiyear contract and there is a wage determination that is applicable to the services your company performs under the contract and the revised wage determination was not made by the Government. In that case, You may wish to consider filing a lawsuit (possibly a class action lawsuit on behalf of all similarly situated contractors) against the Government for violating its legal obligation under 29CFR 4.145(b). Perhaps you may have some rights under the Contracts Disputes Act clause in your contract, but not sure whether government wage determinations are covered. You may also consider filing a claim for equitable adjustment. And, you should consider billing for the adjusted wage rate. In all these scenarios, I would expect that in fact, an increase is required and you do the math and display the amount of dollars owed in your proceedings to resolve this.

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