Recent Regulatory Changes
(Links in Titles)
Department of Labor (DoL) Wage and Hour Division (WHD) Final Rule - Employee or Independent Contractor Classification under the Fair Labor Standards Act (Published 1/10/2024; Effective 3/11/2024) - Changes the process on how to determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). FAQs can be found here. Resources for additional information are here.
FAR Case 2023-012 Trade Agreements Thresholds (Final Rule - Effective 2/23/2024) - Implements new thresholds which were effective 1/1/2024 in FAR subpart 25.4 and other FAR subparts where thresholds are mentioned. A group of Free Trade Agreements (FTAs) are increasing from $92,319 to $102,280. This group includes the Australia, Chile, Colombia, and Singapore FTAs, CAFTA–DR, and Mexico in the USMCA. Primary changes fix the framework because there can no longer be any values that are less than the Korea FTA threshold ($100,000), but greater than the Australia FTA/CAFTA–DR group threshold.
FAR Case 2022-009, Certification of Service-Disabled Veteran-Owned Small Businesses (Interim Rule) - Revises FAR to implement SBA final rules of 11/29/2022 and 7/3/2023, which in turn implemented section 862 of the William M. (Mac) Thornberry National Defense Authorization Act (NDAA) for FY2021 transferring the verification of small businesses owned and controlled by veterans or service-disabled veterans from the VA to SBA effective 1/1/2023 and creating a certification requirement for SDVOSBs who wish to participate in sole-source and set-asides.
VOSBs and SDVOSBs are strongly encouraged to review the complete interim rule for a full understanding of program eligibility, protest procedures, provision and clause changes, and other requirements (ex. SAM indicators and decisions by SBA regarding status). Comments on this interim rule are due no later than 4/23/2024.
DFARS Case 2022-D019 Buy American Act Requirements (Final Rule - Effective 2/15/2024) - Amends DFARS to implement the final FAR rule of 3/7/2022 and include DoD-specific language that allows qualifying countries to count toward the domestic content thresholds.
SBA Alternative Size Standards for SBA's 7(a) and CDC/504 Loan Programs for Inflation and Surety Bond Limit Adjustments for Inflation (Final Rule - Effective 3/18/2024) - Adopts the current statutory alternative size standard for the 7(a) Business and Certified Development Company (CDC/504) Loan Programs. This rule increases the size standard's level for tangible net worth to $20 million and net income to $6.5 million. Also adjusts for inflation the statutory limits for contact size under the Surety Bond Guarantee (SBG) Program by increasing the contract limit to $9 million and the contract limit for Federal contracts to $14 million if a Federal contracting officer certifies such a guarantee is necessary.
GSA Case 2020-GS11 Updated Guidance for Non-Federal Entities Access to Federal Supply Schedules (FSS) (Final Rule - Effective 3/25/2024) - Updates GSA's FAR Supplement, GSAM/R, Subpart 538.70 Purchasing by Non-Federal Entities, to:
Provide a definition for ‘eligible’ and ‘non-Federal entity’.
Clarify the requirements supporting use of FSS contracts by eligible State or local governments (i.e., non-Federal entities), as defined in 40 U.S.C. 502(c)(3) Use of FSS contracts.
Clarify the authorities providing for the use of FSS contracts by eligible non-Federal entities.
