The U.S. Small Business Administration (SBA) recently updated agency contracting goals for fiscal year 2025. Minimum small business contracting goals are in statute, including the overall 23% small business prime contracting goal, but the federal government can establish more significant requirements.
Each year, the SBA publishes specific small business contracting goals by type for the 24 agencies subject to the Chief Financial Officers Act. Within the overall 23% small business prime contracting goal, the SBA can establish greater requirements for small disadvantaged businesses (SDBs), women-owned small businesses (WOSBs), service-disabled veteran-owned small businesses (SDVOSBs), and those participating in the HUBZone program.
The SBA works with federal agencies to ensure compliance, track performance, and adjust goals as needed. This goal benefits small businesses and protects the nation’s supply chain by broadening access to more sources.
The most recent SBA update slightly adjusts some agency-wide prime contract goals and retains the same percentages for WOSBs, SDVOSBs, and HUBZone small businesses. However, it reduced prime contract goals for small disadvantaged firms to 5%, which had increased during the previous administration.
An explanation of the SBA goaling program and each year’s goals can be found at https://www.sba.gov/document/support-agency-contracting-goals.
The U.S. Census Bureau announced construction spending for December 2024 was at a seasonally adjusted annual rate of $2,192 billion, 4.3% above the previous year.
While private construction spending in December was $1,688 billion, 0.8% above the November estimate of $1,674 billion, public construction spending was $504 billion, 0.4 % below the November estimate of $506 billion. A key contributor to public construction was highway construction at $143 billion, 0.7 % above the November estimate of $142 billion.
Compared to the previous year, the value of public construction in 2024 was $504 billion, 4.3% above 2023 spending.
Read More:
https://www.census.gov/construction/c30/pdf/release.pdf
On February 4, 2025, a U.S. appeals court upheld President Joe Biden’s executive order requiring a minimum wage for federal contractors, which increased to $17.75 per hour on January 1, 2025. The decision affirms that covered federal contractors must comply with this wage floor, which applies to contracts governed by the Service Contract Act (SCA) and Davis-Bacon Act (DBA), among others.
This mandate originated from Executive Order 14026, issued in 2021, establishing an annual inflation-based adjustment to the minimum wage for federal contract workers. The most recent increase follows this adjustment process.
The ruling emphasizes compliance obligations for businesses with federal contracts, which may affect contract pricing and payroll structures. Employers should ensure their payroll systems align with this recent ruling.
While legal challenges may continue, this ruling reinforces the federal government’s authority to set and enforce wage standards for contract workers. Under the current administration, there is also the potential for policy shifts, and employers will need to monitor regulatory developments and be prepared to adjust compensation practices accordingly.
Upon taking office on January 20, 2025, one of President Trump’s first acts was to sign an executive order that rescinded 78 of President Biden’s executive orders or actions. Many actions affected issues relating to the federal workforce or climate change, but one item also addressed the Service Contract Act.
Included in the list of 78 rescissions was Executive Order 14055, the Nondisplacement of Qualified Workers Under Service Contract. Biden’s EO 14055 reversed a Trump rescission of an EO implemented during the Obama Administration.
EO 14055 enabled employees working on predecessor contracts covered by the Service Contract Act and meeting other requirements, who would otherwise be terminated due to the contract’s end, to be offered by the successor “a right of first refusal of employment under this contract in positions for which those employees are qualified.”
The likely immediate impact is that the non-displacement clause will no longer be included in new solicitations or contracts. Further information is needed to understand the impact on existing contracts or option years.
The Office of Federal Contract Compliance Programs (OFCCP) has released A Guide to Combatting Harassment in the Construction Industry, a resource designed to help federal construction contractors address harassment at worksites. The guide is in a question-and-answer format, making it accessible and easy to navigate for both contractors and workers.
This guide details the legal responsibilities of contractors to ensure workplaces are free from harassment, as mandated by Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA). It explains what constitutes harassment, offers examples, and highlights that unlawful behavior can come from supervisors, coworkers, or third parties, including vendors, clients, and subcontractors.
This guide, to support compliance and create safer workplaces, emphasizes several best practices, including:
The guide can serve as a tool to support contractors in ensuring compliance and fostering safe, respectful, and equitable workplaces across the construction industry. The guide can be found at: https://www.dol.gov/sites/dolgov/files/OFCCP/Construction/files/OFCCP-Harassment-in-Construction-Guide-508c.pdf
The Office of Federal Contract Compliance Programs (OFCCP) announced reinstating the Monthly Employment Utilization Report (Form CC-257) for federal construction contractors and subcontractors. The first report, covering March 2025, will be due by April 15, 2025, with subsequent reports due monthly by the 15th (or the next business day if the 15th falls on a weekend or holiday).
Key details include:
To support compliance, OFCCP has published a Frequently Asked Questions (FAQ) section on its CC-257 Report webpage, addressing common contractor concerns about the new requirements. Additionally, the agency plans to provide further compliance assistance, including a webinar, in early 2025.
The new requirements follow the final approval of Form CC-257 in September 2024 and complement earlier changes to contractor obligations. However, the policy’s future may depend on the decisions of the incoming presidential administration.
President-elect Donald Trump has named Rep. Lori Chavez-DeRemer (R-Ore.) his choice for Secretary of Labor. A former one-term congresswoman, Chavez-DeRemer has built a reputation as a pro-labor Republican, co-sponsoring legislation like the Protecting the Right to Organize (PRO) Act to strengthen union rights and expand penalties for labor law violations. Her nomination has been endorsed by major labor groups, including the Teamsters, but has drawn criticism from conservatives for her union-friendly policies.
Chavez-DeRemer, who represented Oregon’s 5th Congressional District, built a reputation for bipartisan collaboration and advocacy for worker rights by supporting bills to strengthen public-sector unions and safeguard workers’ Social Security benefits. Additionally, she emphasized apprenticeship programs and workforce development, showing her commitment to improving opportunities for American workers.
Her nomination signals a potential shift in the Trump administration’s approach to labor policy, emphasizing workforce development and labor-management cooperation. The confirmation process will determine how her leadership will shape labor relations and business practices.
If confirmed, Chavez-DeRemer could shift the Department of Labor toward expanded training programs. With ongoing legal challenges to Biden-era overtime and contractor wages regulations, Chavez-DeRemer’s stance on defending or revising these rules will be closely monitored.
The U.S. District Court for the Eastern District of Texas recently invalidated the Department of Labor’s (DOL) final rule that increased overtime exemption salary thresholds under the Fair Labor Standards Act (FLSA). The court ruled that the regulation exceeded the agency’s statutory authority. The decision nullifies the salary threshold increase that took effect in July 2024 and the planned increase for January 2025. The nationwide ruling reverts the threshold to $684 per week ($35,568 annually) and $107,432 annually for highly compensated employees.
The court determined that the DOL’s rule improperly emphasized salary thresholds, effectively overshadowing the requirement to evaluate whether employees perform exempt duties. This ruling aligns with a Fifth Circuit Court decision limiting the DOL’s authority to set salary thresholds that “replace or swallow” statutory exemptions. The now-vacated rule raised the salary threshold to $844 per week ($43,888 annually) on July 1, 2024, with a planned increase to $1,128 per week ($58,656 annually) on January 1, 2025.
For now, employers are no longer required to adjust salaries to meet the previously planned increases under the vacated DOL rule. However, reviewing current pay practices and evaluating the potential reinstatement of exempt status for employees affected by the July 2024 changes is essential. Employers should consult legal counsel to ensure compliance with wage laws, especially in states with stricter requirements.
The DOL may appeal the decision, but with the impending presidential transition in January 2025, the likelihood of the rule being reinstated appears low. Employers should monitor further developments and adjust their compliance strategies accordingly.
The U.S. Department of Labor (USDOL) has introduced a set of principles and best practices to guide employers and AI developers in safeguarding workers’ rights and well-being amidst the rapid adoption of artificial intelligence. Directed by President Biden’s executive order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, the guidance outlines how AI can be ethically and transparently integrated into workplaces, ensuring that both businesses and employees benefit from technological advances.
The guidelines highlight several essential principles, with a primary focus on empowering workers. This involves including workers in designing and implementing AI systems that impact their roles. Ethical development is also prioritized, ensuring AI systems are created with solid safety measures and anti-bias standards. Furthermore, transparency in AI usage is vital; companies should inform workers about AI applications, mainly when they influence employment decisions.
Other principles include ensuring data responsibility, whereby employers are urged to collect only necessary data, protect it diligently, and avoid sharing it without explicit consent. The DOL also advocates for support during transitions in cases where AI may replace specific roles, recommending that employers provide retraining or alternate positions for affected workers.
The guidance underscores the potential of AI to improve job quality, enhance safety, and promote equitable practices in the workplace, but it warns against its unchecked use. With these guidelines, the DOL aims to help employers and developers navigate AI integration responsibly, balancing innovation with the rights and protections of American workers.
You can see a copy of the guide here; https://www.dol.gov/sites/dolgov/files/general/ai/AI-Principles-Best-Practices.pdf
Fringe Benefit Group (FBG), an industry leader in the design, implementation and administration of benefit plans for government contractors, restaurants, retail, and staffing companies, today announced that Nick Harness has joined the company as Chief Information Officer (CIO). Harness brings extensive technology and business leadership experience to FBG, where he is focused on enhancing platform features, optimizing the user experience and pushing data-driven insights to customers.
Over the past two decades, Harness has served in various technology leadership roles across JPMorgan Chase’s Asset Management Division and Morgan Stanley’s Research Division in New York City where he delivered technology solutions on a global scale. Most recently, Nick served as Chief Information Officer at Kestra Holdings, an Austin-based wealth management company, where he helped the company achieve rapid growth acceleration through technology modernization and innovation.
“We are very excited to have Nick join the FBG team. His vast experience in delivering innovative technology solutions across financial services industries will allow FBG to launch major technology enhancements on our platform and better streamline benefits administration for our customers. We look forward to a steady announcement of new features for our customers in the months ahead,” said Travis West, CEO of Fringe Benefit Group.
“I can’t wait to work with FBG’s leadership to further accelerate our product and technology development strategy and help our customers – hardworking Americans – understand and easily access their benefits. My mission is to give our customers the best features and functionalities through a significant investment in technology and innovation,” said Harness.
Harness received his MBA from New York University and a Bachelor of Engineering (Honors) degree in Electrical and Electronic Engineering from South Bank University, London, UK.
About FBG
FBG has more than four decades of industry expertise providing customized benefit programs for government contractors, restaurants, retail, and staffing companies via its flagship products, The Contractors Plan and The American Worker. Through its nationwide network of independent brokers and agents, FBG offers products from the industry’s leading carriers and is recognized for its full-service suite of tools and services that greatly reduce the burden of plan enrollment and administration for employers with hourly and part-time workers.
For more information, visit www.fbg.com, www.contractorsplan.com or www.theamericanworker.com