693KA8-21-R-00022 - WSA Questions and Answers - Amendment 0003.pdf

WSA Questions and Answers

693KA8‐21‐R‐00022

Amendment 0003

# SECTION NAME SUB-SECTION REFERENCE OFFEROR'S QUESTION GOVERNMENT RESPONSE

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Historically, California employers have been subjected to costly wage-and-hour class actions based on the overtime, paystub, meal break, and rest break provisions of the California Labor Code. In 2019, for example, Wackenhut settled a class action for $100M; in 2016, the California Supreme Court upheld a class-action verdict against ABM Security for $90M; and such actions are routinely brought against hourly employers in the state, with defense costs in the millions of dollars. As Federal contractors, are offerors exempt from the wage and hour requirements of the California Labor Code?

You will need to confirm with the Department of Labor what/if any exemptions apply.

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California Labor Code Section 510 requires an employer to pay time and a half for all hours over eight in a day, all hours over 40 in a week, and all hours on the seventh consecutive day of work; it also requires double time for all hours beyond twelve in a day and beyond eight on the seventh consecutive day of work. Only a valid collective bargaining agreement in which the employer is a party can waive this requirement, so the existing CBA will not suffice for any but the incumbent. Will the Government compensate bidders for unforeseeable overtime costs during the time between contract start and the execution of a new CBA in which the successful offeror is a party?

If the Contractor is following the requirements of Section C and the post exhibits and the labor hour requirements for this labor category, there should be minimal overtime costs. The FAA will not pay for overtime

Amendment 0003

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California Labor Code Section 512 requires that every employee must receive an off-duty meal break of at least 30 minutes for every shift over five hours in length. California courts have ruled that “off duty” means completely freed from all responsibility and must not be “on call.” An employee who does not receive such a break must be paid an additional hour’s pay for that shift. The post exhibit shows that many single-man posts do not require relief for breaks. Will the Government allow CSOs at self-relieving posts to clock out midway through the shift and leave the premises, or must the CSO at a self-relieving post remain on call? If the CSO must remain on call, will the Government reimburse the contractor for the additional hour of pay?

There are no single man posts in the Western Service Area contract. All posts must be staffed per the post exhibits requirements.

The Contractor’s pricing should reflect how they plan to meet the FAA’s requirements in accordance to CBAs and labor laws.

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California law also requires that every employee must receive an off-duty but paid rest break of at least 10 minutes for every four hours of work or major part thereof. Recent legislation permits the employee to be “on call” during such a break only if covered by a collective bargaining agreement to which the employer is a party. An employee who does not receive such a break must be paid an additional hour’s pay for that shift. Will the Government allow CSOs at self-relieving posts to clock out for rest breaks and leave the premises, or must the CSO at a self-relieving post remain on call? If the CSO must remain on call, will the Government reimburse the contractor for the additional hour of pay?

Self breaks like restroom breaks are allowed.

There should not be a need to leave the FAA premises during 10 minute breaks. The Contractor’s pricing should reflect how they plan to meet the FAA requirements in accordance with the CBAs and labor laws.

Amendment 0003

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California law also requires that employee vacations be vested on a daily basis, as opposed to the Service Contract Act’s requirement that it vest annually. Employees who leave service during the anniversary year must therefore be paid for their accrued but unvested vacation time. Example: An employee with a Service Contract Act anniversary date of June 1 resigns on May 30. Under the SCA, the unvested leave that has accrued since his previous June 1 anniversary date is forfeited, but under California law, all 363 days of accrued daily leave must be paid out. As Federal contractors, are offerors exempt from those requirements?

You will need to confirm with the Department of Labor what/if any exemptions apply.