Civil Litigation

On behalf of the Professional Services Council (PSC), this past week Covington filed an amicus brief in the U.S. Supreme Court in support of the petitioner in The GEO Group, Inc. v. Menocal (No. 24-758). The brief urges the Court to grant certiorari and, ultimately, to hold that government contractors are entitled to immediately appeal a district court’s denial of derivative sovereign immunity under the collateral order doctrine.Continue Reading Covington Submits Supreme Court Amicus Curiae Brief Addressing Derivative Sovereign Immunity for Government Contractors

Update: On March 14, 2025, President Trump issued an Executive Order, “Additional Rescissions of Harmful Executive Orders and Actions,” which revoked Executive Order 14026, discussed below. The U.S. Department of Labor has stated it is “no longer enforcing Executive Order 14026 or the implementing rule (29 CFR part 23) and will take steps, including rescinding 29 CFR part 23, to implement and effectuate the revocation of Executive Order 14026.” We will continue to monitor further developments.

Earlier this month, the Fifth Circuit ruled in favor of a Biden administration order raising the minimum wage of many types of federal contract workers.  The executive order remains subject to litigation (in both the Fifth Circuit and elsewhere), but is currently effective throughout the country, with a narrow exception for certain state agencies. 

President Biden’s Executive Order 14026 (“the EO”), issued in April 2021, raised the hourly minimum wage to $15.00 for federal contract workers for the following contract types:

  • Procurement contracts for construction projects covered by the Davis-Bacon Act (“DBA”);
  • Service contracts falling under the Service Contract Act (“SCA”);
  • Concessions contracts, including those excluded from the SCA by DOL regulations at 29 C.F.R. 4.133(b); and,
  • Contracts related to federal property or lands and connected to providing services for federal employees, their dependents, or the general public.

EO 14026 directs the U.S. Department of Labor to annually update the hourly minimum wage.  We wrote in October 2024 about DOL’s annual update effective January 1, 2025, which raised the minimum wage for covered contracts from $17.20 to $17.75.  More details are below.Continue Reading Fifth Circuit Adds New Wrinkle to Ongoing Fight Over Federal Contract Worker Minimum Wage Requirement

In the wake of the U.S. Supreme Court’s decision in Students for Fair Admissions, Inc. v. President & Fellows of Harvard College, there has been an increase in legal challenges to race and gender-based programs and initiatives in multiple contexts, including within government contracting.  While the holding of Students for Fair Admissions did not address public contracting or disturb existing case law that considers the validity of similar government contracts programs, the decision has informed and reshaped the landscape for strict scrutiny challenges to these programs, and there has been a significant uptick in challenges to diversity-focused government procurement regulations.

Last month, in Mid-America Milling Company, LLC, et al., v. U.S. Department of Transportation, the U.S. District Court for the Eastern District of Kentucky temporarily enjoined the Department of Transportation (“DOT”) from mandating the use of race- and gender-based presumptions for DOT contracts impacted by Disadvantaged Business Enterprise (“DBE”) goals.  The court found, among other things, that while DOT’s DBE program intends to combat historical discrimination and its lingering effects on the ability of disadvantaged businesses to equally compete for government contracts, the plaintiff was likely to prevail on the merits of its argument that the program’s “race and gender classifications” violate the Equal Protection clause.

Although the preliminary injunction currently remains geographically constrained to Kentucky and Indiana, the case is an important development for government contractors that are impacted by DBE related contracts.  We summarize the key takeaways from the court’s holding, as well as its implications for government contractors, below.Continue Reading Federal Court Enjoins DOT Disadvantaged Business Enterprise Program On Equal Protection Grounds