Weekly Update for Government Contractors and Commercial Companies – May 2024 #2

LABOR & EMPLOYMENT

Clocking in with PilieroMazza: FTC Non-Compete Ban Attacked by Companies: What You Need to Know, PilieroMazza Podcast, Nichole D. Atallah, Sarah L Nash. Click here to access the podcast.

Federal Trade Commission (FTC) Final Rule: Non-Compete Agreement

On May 6, the FTC published a final rule that it considers an unfair method of competition for individuals to engage in non-compete with employees. For existing non-compete agreements, the final rule takes a different approach for senior managers than for other employees. For senior managers, existing non-compete agreements may remain in effect, while existing non-compete agreements with other employees will be unenforceable after the effective date. The final line is available here and will come into effect on September 4, 2024.

Guidance from the Department of Labor (DOL): Artificial Intelligence (AI) and Equal Employment Opportunity (EEO) for Federal Contractors

On April 29, the DOL’s Office of Federal Contracting Compliance Programs (OFCCP) updated its guidance regarding Executive Order (EO) 14110, requiring government agencies to ensure the responsible and safe development and use of AI. While some federal contractors may use AI systems to increase productivity and efficiency in their employment decision-making, the use of AI systems also has the potential to perpetuate unlawful bias and automate unlawful discrimination. OFCCP answers questions and shares practices to clarify federal contractors’ legal obligations, promote EEO, and mitigate the potentially harmful effects of AI in employment decisions. read more here.

Upcoming presentations on labor and employment

COURSE: Labor Rules and Regulations: Federal Market Compliance, Nichole D. AtallahMay 15, 2024. Read more here.

WEBINAR: From compliance to competitiveness: updated DBA rule reshapes the labor landscape for construction contractors Nichole D. Atallah, Sarah L NashMay 15, 2024. Read more here.

BUILD

Preparing for Major Changes to DOT’s Disadvantaged Business Enterprise (DBE) Program, Effective May 9, 2024 PilieroMazza webinar replay, Jacqueline K. Unger, Peter B. Ford. Click here to view the recorded session.

GOVERNMENT CONTRACTS

Small Business Administration (SBA) Immediate Final Rule: Changes to the Microloan Program under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act

On May 2, SBA published a Direct Final Rule amending the Microloan Program regulations to reflect statutory changes to the Microloan Program in the Economic Aid to Hard-hit Small Businesses, Nonprofits, and Locations Act. The changes increase the amount an intermediary can borrow per year and in total, increase the right of intermediaries to receive a bonus subsidy and revise the basic eligible subsidy amount for intermediaries under certain circumstances. This direct final rule conforms to the provisions of the law by adopting the new legal requirements. The final line is available here and will become effective on June 17, 2024, unless significant adverse comment is received before June 3, 2024.

Agency for International Development (USAID) Final rule: USAID Acquisition Regulation (AIDAR), planning, collection and submission of digital information, submission of activity monitoring, evaluation and curriculum to USAID

On May 6, USAID published a final rule amending AIDAR and implementing requirements for the management of digital information as a strategic asset. This final rule includes new policies on digital information planning, collection, and submission requirements and adds the corresponding clause and a new clause entitled “Activity Monitoring, Evaluation, and Curriculum Requirements” to the AIDAR. This final rule reduces burdens on contractors, increases efficiency, and improves the use of data and other forms of digital information in the Agency’s programs and activities. The final line is available here and will come into effect on June 5, 2024.

Federal Acquisition Regulation (FAR) Council Advanced Notice of Proposed Rulemaking (ANPRM): Ban on Certain Semiconductor Products and Services

On May 3, the Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration published an ANPRM seeking comment on potential regulations implementing paragraphs (a), (b), and (h) in section 5949 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 prohibits executive agencies from purchasing or obtaining certain products and services, including covered semiconductor products or services. The ANPRM is available here. Comments close on July 2, 2024.

White House Press Release: Fact Sheet: Celebrating National Small Business Week, Biden-⁠The Harris Administration Announces Record Federal Purchasing Dollars Awarded to Small Businesses

On April 29, the White House released a fact sheet noting that the administration had awarded a record number of federal contracts to small businesses within federal agencies in fiscal year 2023. In total, a record high of $178.6 billion, or 28.4 percent, of all contract dollars went to small businesses. read more here.

Small Business Administration (SBA) Press Release: Biden-Harris Administration Announces New Rule to Expand Economic Opportunity for Returning Citizens
On May 1, Administrator Isabel Casillas Guzman announced that the Biden-Harris administration has finalized a rule that will lift restrictions on SBA loan programs, making many returning citizens, including those on parole, ineligible for SBA loan programs. supported loans to start or start. grow a business. As part of this rule change, the SBA will also remove criminal history questions from its applications. Individuals currently incarcerated and those who previously defrauded the government will no longer be eligible for SBA-backed loans. read more here.

Upcoming presentations on government contracts

COURSE: Legal Considerations: How to Best Structure Your Business as a Federal Contractor, Isaiah “Cy” Alba, IVMay 14, 2024. Read more here.

CYBER SECURITY & DATA PRIVACY

Department of Defense (DOD) Memorandum: Class Variance, Protection of Covered Defense Information, and Cyber Incident Reporting

On May 2, DOD issued a class deviation, effective immediately, requiring contracting officers to use Attachment in lieu of DFARS clause 252.204-7012. read more here.

Department of Defense (DOD) Press Release: DOD Issues Class Variation on Cybersecurity Standards for Covered Contractor Information Systems
On May 2, the Office of the Under Secretary of Defense for Acquisition and Sustainment, in coordination with the Office of the Chief Information Officer, issued a class deviation from the Defense Federal Acquisition Regulation Supplement (DFARS) regarding the cybersecurity standards required for the covered contractor information systems. . read more here.

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