Today, the national law firm of Baron & Budd announced that it is accepting cases on behalf of federal contractors who may not have been paid all of the wages due to them as a result of the federal government shutdown. Now underway for more than 25 days, the government shutdown is creating serious employment and financial ramifications for thousands of federal contractors and their families who have not been paid.
Contractors need to assess their work and pay eligibility status on a contact-to-contract basis. There are some important distinctions related to the status of a federal contractor and their agreements with the federal government that may dramatically impact their ability to be paid for contracted work. Primary contractors may have received stop work notices. However subcontractors may still be contractually owed income according to their individual agreements. Additionally, individuals who contract directly with the federal government may also be owed money for unpaid time.
Employees of federal contractors must be compensated according to the rules and regulations outlined by the Federal Fair Labor Standards Act (“FLSA”). Exempt employees of federal contractors must be paid his or her salary for the entire week if they perform any type of work - including checking and responding to work-related emails, text messages or phone calls. Also, while exempt employees of federal contractors may be asked to use vacation pay or paid time off leave (“PTO”) to cover compensation for non-working days during furlough weeks, contractors must continue to pay employees according to state wage and hour laws, and comply with published leave policies.
The FLSA states that the failure to pay an employee for work performed by the regularly scheduled pay date is considered a failure to pay, even if the employer pays the wages in full after the scheduled pay date. This failure to pay on time is considered a minimum wage violation for FLSA non-exempt employees (FLSA non-exempt employees are those that are generally entitled to overtime wages and minimum wage protections). This late-pay penalty applies to government and private sector employees alike.
“Because of the nuanced situation created by this shutdown, as well as the historically long nature of this nationwide work stop, tens of thousands of federal contractors at all levels are faced with navigating a complex legal system to ensure that they receive accurate compensation,” said Allen Vaught, head of the Employment Law Group at Baron & Budd. “Primary contractors bear the burden of risk during a government shutdown - but their employees and subcontractors should not. The Federal government and employers who are primary contractors of the federal government must follow FLSA in paying employees fairly and enforcing work stops when needed. Additionally, subcontractors need to be fairly compensated according to the terms of their agreements.”
The employment law attorneys at Baron & Budd have represented thousands of employees throughout the United States. They are known and respected for their results and experience in the field of employment law. If you think that your employer might not be paying you all wages you are owed, including tips, overtime wages, or minimum wages, please contact us at 866-599-0808 or complete our contact form for a free and confidential case evaluation. There is no out of pocket cost to you for a consultation to learn more about your state or federal employment protections.
About Baron & Budd, P.C.
Baron & Budd, P.C. is among the largest and most accomplished plaintiffs’ law firms in the country. With more than 35 years of experience, Baron & Budd has the expertise and resources to handle complex litigation throughout the United States. As a law firm that takes pride in remaining at the forefront of litigation, Baron & Budd has spearheaded many significant cases for hundreds of entities and thousands of individuals. Since the firm was founded in 1977, Baron & Budd has achieved substantial national acclaim for its work on cutting-edge litigation, trying hundreds of cases to verdict and settling tens of thousands of cases in areas of litigation as diverse as dangerous pharmaceuticals and defective medical devices, asbestos and mesothelioma, environmental contamination, fraudulent banking practices, motor vehicles, employment law, and consumer fraud issues.
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