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Labor Department Minimum Wage Rule Still Highly Problematic, PSC Says

Arlington, VA – WEBWIRE

The Professional Services Council  criticized the Labor Department’s rule raising the minimum wage levels for certain government contractor employees for being too complicated and confusing and for failing to address critical issues.  The Labor Department announced the final rule on October 1. It raises the minimum hourly wage to $10.10 and takes effect on January 1, 2015.

“Although we never objected to the intent of the original executive order, and while the department accepted many of our recommendations on its proposed rule, this final rule perpetuates some of the most complex, confusing and problematic elements of the proposed rule,” said PSC President and CEO Stan Soloway. “Among other things, we remain deeply concerned that its scope goes well beyond the executive order itself, especially when it comes to the coverage or exclusion of certain employees who are not working directly on a contract.”

“Under this rule, companies will be required to shoulder significant compliance liabilities and requirements,” Soloway said. “Further, as a result of the complexity and questions that remain, companies acting in good faith could easily run afoul of the rules.”

“It simply does not offer the clarity companies and their employees deserve around the contracts and employees covered,” Soloway said. “Moreover, that failure could well hamstring the Federal Acquisition Regulatory Council, which know must promulgate a related rule for the contracting process.”

In July, PSC submitted extensive comments on Labor’s proposed rule. PSC will continue monitoring implementation of this rule and anticipates commenting on the expected modification to the Federal Acquisition Regulation that will incorporate this rule into the contracting process.


About PSC:
PSC is the voice of the government technology and professional services industry. PSC’s more than 375 member companies represent small, medium, and large businesses that provide federal agencies with services of all kinds, including information technology, engineering, logistics, facilities management, operations and maintenance, consulting, international development, scientific, social, environmental services, and more. Together, the trade association’s members employ hundreds of thousands of Americans in all 50 states. Follow PSC on Twitter @PSCSpeaks and @StanSoloway.


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