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Contracts Mean What They Say: Contractor Entitled to Invoice for Total Hours Worked under Labor Hours Contracts

Client Alert | 1 min read | 07.30.12

In GaN Corp. (July 13, 2012), the government argued that the Payments Under Time-and-Materials and Labor-Hour Contracts clause permitted the contractor to bill on the labor-hour task orders at issue only those hours for which salaried exempt employees had been "paid" by the contractor, not for so-called "uncompensated overtime" hours worked by those salaried employees. It is not clear from the decision how the government proposed to determine the number of hours for which the salaried employees were not "paid," but what is clear is that the Board rejected the argument and held that under the plain meaning of the clause the contractor was entitled to invoice for the total number of hours actually worked by each employee at the hourly rate specified in the contract for that employee, regardless of the amount paid to the employee.

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Client Alert | 4 min read | 03.05.26

DOL’s Proposed Independent Contractor Rule Reverts to Prioritize Two Core Factors – Likely Limiting Misclassification Claims by Contractors

The U.S. Department of Labor (DOL) has proposed another revision to independent contractor regulations, one that would provide for more leeway in classifying workers as contractors. DOL’s proposed rule, published on February 26, 2026, would rescind the Biden DOL’s March 2024 independent contractor regulation and reinstate a framework substantially tracking the prior Trump rule of January 2021. The proposed rule would also apply the narrower analysis to worker classifications under the Family and Medical Leave Act (FMLA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). The comment period closes in late April 2026; until then, the 2024 rule remains in effect for purposes of private litigation....