Monday, July 14, 2014

Establishing a Minimum Wage for Contractors and the VA

Dana Halvorson and Dianne De La Mare

As noted previously, on February 12, 2014, President Obama signed Executive Order 13658, Establishing a Minimum Wage for Contractors. The Executive Order raises the hourly minimum wage paid by contractors to workers performing on covered Federal contracts to: (i) $10.10 per hour, beginning January 1, 2015; and (ii) beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of the Department of Labor (DoL) in accordance with the Order. On June 17, 2014, DoL released the proposed rule that establishes standards and procedures for implementing and enforcing the minimum wage protections of Executive Order 13658. The proposed rule incorporates existing definitions, procedures, remedies, and enforcement processes under the Fair Labor Standards Act, the Service Contract Act, and the Davis-Bacon Act.

AHCA has submitted comments to the DoL relating to the VA provider agreements and wage increase. Specifically, AHCA is seeking clarification that the Veterans Administration (VA) provider agreements are exempted from the requirements of the DoL proposed rule. AHCA is also asking that if the VA provider agreement 2013 proposed rule, Use of Medicare Procedures to Enter Into Provider Agreements for Extended Care Services, is not finalized and released before the end of this year, that DoL consider exempting nursing facilities (NFs) from the Department’s proposed rule until such time that the VA proposed rule is finalized. This would thereby exempt NFs with VA contracts from the DoL requirements on establishing a minimum wage for contractors.

If you have any questions relating to this matter, please contact AHCA’s Dana Halvorson or Dianne De La Mare.

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