Employment challenges in the era of sequestration
Job losses. Furloughs. Salary reductions. These are some of the tough employment issues facing contractors around the nation as sequestration and federal budget cuts have taken effect in 2013. The squeeze on contract spending has taken a substantial toll on government contractors, who have seen contracts and orders delayed, descoped, deferred and terminated.
When faced with these types of contractual changes, employers often are forced to cut costs in one of the most significant areas of spending: labour. After calculating salaries, leave, healthcare, retirement benefits, insurance, taxes, overheads and collective-bargaining costs, labour is usually the most significant cost driver for employers, particularly in the services industry. And for some government contractors, an extra layer of complexity might be added in the form of mandatory wage determinations, affirmative action requirements and oversight of subcontractors.
In this new era of fiscal austerity, employers face hard decisions regarding whether to reduce the hours, wages or numbers of their employees; to relocate employees to more cost-efficient locations; or to offer voluntary separation programmes prior to commencing a reduction in force. When considering these options, contractors should be aware of the hidden obligations that could create liability…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Australian Taxation Office released a draft ruling on the Goods and Services Tax treatment of bitcoin transactions on 20 August 2014.
DLA Piper’s ‘Life sciences: patent extension strategies and antitrust global update’ video covers global antitrust and competition issues including product hopping and reverse payment patents.
Analysis from The Lawyer
Still the lawyer’s destination of choice in the region, despite falling oil prices
Cross-border work and political tensions are dominating this year’s entries for Finance Team of the Year at The Lawyer Awards.