Federal Contrators

Topics: Wage, Employment, Minimum wage Pages: 2 (512 words) Published: February 18, 2013
One of the primary factors that will effect this organization is that they are a federal contractor. Federal contractors are subject to more regulation and tighter control in general, as well as in the area of compensation.

One of the primary pieces of federal legislation that could effect this contractor is the Davis-Bacon Act. Whether the Davis-Bacon Act applies to this company will depend on what type of jobs this biotech company is engaging in. If they are working on federal contracts in excess of $2000 for the construction, alteration, or repair of public buildings, then the Davis-Bacon Act would apply to this corporation (Department of Labor, 2009). If Davis-Bacon applies, then the company will have to adjust its compensation to ensure that they are paying laborers no less than the prevailing wage rates and fringe benefits working on similar projects in the area. Davis-Bacon also has overtime provisions on contracts over $100,000, which require that employees recieve time and a half for all hours over 30. They are also required to pay employees weekly and submit weekly certified payroll records (Department of Labor, 2009). This is different from a non-federal contractor, who is only required to meet federal minimum wage standards under the Fair Labor Standards Act, as well as any state law which may provide wage protection. The requirement of paying prevailing wage and benefits will likely increase the total compensation paid by this organization. It will also increase administrative costs based on the record-keeping requirements.

Another piece of federal legislation that could affect this employer is again based on what type of federal contracts that the employer is working on. The McNamara-O'Hara Service Contract Act requires federal contractors with contracts over $2500 to pay no less than prevailing wage rates and fringe benefits in the area or in a predecessor contractor's collective bargaining agreement (United States Department of...
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