Department of Labor Issues New Health & Welfare Fringe Benefits Rates for Contracts Covered by the Service Contract Act
Client Alert | 1 min read | 08.08.17
On July 25, 2017, the Department of Labor issued its annual memorandum increasing the health and welfare fringe benefits rate (H&W rate) for contracts covered by the Service Contract Act from $4.27 per hour to $4.41 per hour, with corresponding increases from $1.78 per hour to $1.91 per hour for Hawaii. In a new measure, the DOL set the H&W rate for contracts covered by Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors, at $4.13 per hour ($ 1.63 per hour in Hawaii) to account for the additional paid sick leave benefits covered contractors must provide under E.O. 13706. These new H&W rates must be included in all bids or other service contracts awarded after August 1, 2017, but the rates do not automatically apply to existing contracts until contracting agencies modify the contracts with an updated wage determination.
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Client Alert | 3 min read | 06.12.26
DOJ Guidance Backs Away From Disparate Impact Liability
On June 9, 2026, the U.S. Department of Justice (DOJ) issued a formal opinion concluding that the Equal Opportunity Employment Commission’s (EEOC) existing interpretations of Title VII of the Civil Rights Act of 1964 (Title VII) disparate-impact liability, including the Uniform Guidelines on Employee Selection Procedures (UGESP), are unconstitutional. According to the opinion, EEOC’s prior interpretations contemplate liability based on disproportionately adverse effects alone, without regard to an employer’s likely intent, rather than treating disparate impact as an evidentiary mechanism to “smoke out” intentional discrimination. DOJ found that this approach functions as a “qualified racial-proportionality mandate” that places “a racial thumb on the scales, often requiring employers to evaluate the racial outcomes of their policies, and to make decisions based on (because of) those racial outcomes.” The opinion fulfills one mandate of Executive Order 14281, which rejected disparate-impact liability insofar as it “creates a near insurmountable presumption that unlawful discrimination exists wherever there are any differences in outcomes among different [demographic groups].”
Client Alert | 4 min read | 06.12.26
Auto Dealers: The FTC Is Back in the Driver’s Seat — Warning Letters Signal Renewed Federal Scrutiny
Client Alert | 13 min read | 06.12.26
Client Alert | 4 min read | 06.12.26
