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Turning Labor Compliance Into A Competitive Advantage
LPTA
Presented by Jim Campbell
WelcomeWe are all searching for the best way to thrive in a difficult LPTA market. By properly allocating resources to more efficiently manage compliance you can reduce overhead,
improve contract profitability, and avoid costly fines and debarments. This presentation will focus on turning compliance into competitive advantage.
Jim Campbell - President / CEOAxim Fringe Solutions Group, LLC
@aximfsg
linkedin.com/in/jvcampbell
Presentation BlueprintCompliance as a Competitive Advantage
1 Compliance Tracking Model
The Cost of Noncompliance
Suspensions & Debarments
DOL Enforcement / Direction
Fair Play & Safe Workplaces EO
ACA Impacts
The Compliance Solution
Fringe Dollar Management
2
3
4
5
6
7
8
Compliance Technology9
Improving Contract Profitability10
Compliance Tracking ModelHow Do You Measure Up?
Training
Risk MappingAssessment
Periodic Reviews AuditsInternal or external
Full CooperationWith Government in event
of investigation / audit
Timely ReportingTo the Government
Disciplinary ActionFor improper conduct
The Cost of NoncomplianceNoncompliance Can Cripple A Company's Future
1 Fines
4 Debarment from all government contracts for three years
2 Contract termination
3 Withholding of payments
The Rise of Suspensions & DebarmentsThe Government is Stepping Up Compliance
65% Increase Over Past 5 Years 98% Increase Over Past 5 Years
Labor Secretary Thomas E. Perez on DOL Enforcement Strategies - March 2015
“One way to leverage our enforcement resources is to identify the supply chain. The
idea is to cause those at the top of the chain to evaluate their compliance practices
to those below them; and to get them to think twice about whether it is worth the
risk to their good name, and possibly their bottom line, to do business with a
subcontractor who skirts the law.”
The Wage and Hour division (DOL) has requested a 22% budget increase
($227M in FY2015 to about $277M in FY2016). This would provide the agency
with 300 new full-time investigators and upgrades to its technology.
In FY2014, 44% of its investigations were directed (i.e., not complaint-based).
Labor Secretary Thomas E. Perez on DOL Enforcement Strategies - March 2015
“We’ve shifted the focus of our enforcement
efforts. Instead of a purely reactive
approach where we respond to incoming
complaints, we have targeted investigations
in industries where we know workers are
vulnerable, and where they are often
reluctant to raise their voices and exercise
their rights.”
The Fair Pay & Safe Workplaces Executive OrderGoverning NEW federal procurement contracts $500,000+ (2016)
Disclose labor law violations ( past 3 years) with
updates every six months1
Protect responsible contractors4
Promote efficient federal contracting3
Crack down on repeat violators2
Primes will be responsible for checking subs
compliance5
Streamline overall contractor reporting8
Contractors / Subs must provide summary data
on compensation paid to employees7
Government agencies will have a labor
compliance officer6
ACA Impacts on Government ContractorsCost and Compliance Requirements of the Affordable Care Act
Payments don’t count
as employer-provided
health coverage under
the ACA “affordability”
requirement
Cash-in-lieu
Applicable large
employers must decide
whether to “Play” -
provide ins. coverage or
“Pay” a penalty
“Play or Pay” Costs
“Affordable, minimum
value health coverage”
or pay (tax) “shared
responsibility payment”
Employer Mandate
Employee benefits
coverage (30hrs / wk
avg.) can alter insurance
costs & increase
overhead
PT Employees
How Can Compliance Possibly Be A Competitive Advantage?
The Compliance SolutionPartner Up for Success
1 Remove Compliance Burden
Auditable Record Keeping
Offset HR Workload
Improve Bid Opportunities
Protect Your Business
2
3
4
5
Better Fringe Dollar ManagementYour Weapon Against Noncompliance
1 Proper tracking & allocation of fringe dollars (DOL regulations)
4 Prevent an unhappy employee from calling the DOL about their fringe benefits on your behalf
2 Hours worked & fringe dollars accrued
3 Benefits elected & net fringe dollar amount
Compliance TechnologyThe Right Tool for the Job
Steps to Contract ProfitabilitySaving Money Through More Efficient Contracting
LPTA1
Lower Profitability
Reduced Services
Fringe Management2
Better Benefits Planning &
Consulting
DOL Regulations
Strategic Partnerships3
Increase Efficiency On:
Payroll, Compliance,
Benefits, Healthcare Tech
Contract Profitability4
Reduce Overhead
Compliance Assurance
Improve Cost-
Competitiveness
Higher Margins
The Wage and Hour division (DOL) is going to be looking at you.
You need to do as much proactively as possible to make sure
that if the DOL does come knocking, you’re in good shape.
Be aware of your vulnerabilities and take steps to protect yourself.
LPTATurning Labor Compliance Into A Competitive Advantage
Questions?
www.aximfsg.com [email protected]