As part of a Labor Day gesture to workers’ groups, President Obama signed an executive order requiring federal contractors to provide their employees with the ability to earn up to 56 hours of paid sick leave each year. The executive order—the details of which are discussed in this post— could affect some 300,000 workers
Dan Johnson represents government contractors and other clients in litigation and employment matters. He has more than 30 years of experience litigating complex disputes and has successfully represented government contractors and other clients in large trade secret claims, contract claims, prime-sub disputes, software development disputes, and various business disputes arising from corporate transactions, joint ventures, sales of commercial goods, construction projects, and government procurements. Mr. Johnson specializes in representing contractors in multi-million dollar litigation involving the alleged theft of data or the movement of key employees from one contractor to another. His representation has resulted in multiple bench and jury verdicts in favor of his clients. He also helps government contractors and other clients resolve a host of other employment issues.
A draft executive order would require paid leave for employees of many federal contractors. The “confidential” draft order, which was labeled “pre-decisional and deliberative,” was obtained and reported by The New York Times on August 5, 2015.
Continue Reading Administration Appears Poised to Issue Another Executive Order Affecting Contractors and Their Employees
In Size Appeal of NMC/Wollard Inc., SBA No. SIZ-5668, the Small Business Administration Office of Hearings and Appeals (“OHA”) clarified the three factor test used to determine whether a small business qualifies as a manufacturer of the end item being procured. The decision confirmed that no single factor has greater weight than the others, and that a small business can be a manufacturer despite contributing a small percentage of the value of the end item if the contribution was essential to the end item’s function.
Under applicable SBA regulations, a small business manufacturer “is the concern which, with its own facilities, performs the primary activities in transforming inorganic or organic substances, including the assembly of parts and components, into the end item being acquired.” 13 C.F.R. § 121.406(b)(2). The regulations set forth a three factor test to determine whether a small business is the manufacturer of the end item:
- The proportion of total value in the end item added by the efforts of the concern, excluding costs of overhead, testing, quality control, and profit;
- The importance of the elements added by the concern to the function of the end item, regardless of their relative value; and
- The concern’s technical capabilities; plant, facilities and equipment; production or assembly line processes; packaging and boxing operations; labeling of products; and product warranties.
13 C.F.R. § 121.406(b)(2)(i)(A)-(C).Continue Reading SBA OHA: In Three-Factor Test to Determine Small Business Manufacturers, No Single Factor is Determinative