Compliance Stuff

Bradley recently published articles discussing  how government contractors should prepare for and deal with a shutdown  and  how contractors can recover costs and seek time extensions as a result of a shutdown . Below are key actions government contractors should consider once the government eventually reopens. 1. Confirm Contract Status and Performance Schedules Contact the contracting officer (CO) to confirm whether performance has resumed and whether there are any revised timelines or priorities. Request written confirmation of any new deadlines, modified delivery schedules, or changed milestones. If a stop-work order was issued, ensure you receive a written notice to proceed before restarting work. 2. Document Costs and Delays Maintain detailed records of costs incurred during the shutdown, including idle labor, demobilization/remobilization, and overhead. Document lost productivity and schedule disruptions. These records may support requests for equitable adjustments...

While the One Big Beautiful Bill Act made headlines for tax and spending cuts, it also contains significant changes to the federal government’s treatment of COVID era Employee Retention Tax Credit (ERC) claims — many of which are still pending with the IRS. Taxpayers and ERC advisers need to understand these changes, and how they could impact pending claims and potential liability. Congress designed the ERC to encourage businesses to retain employees during the COVID-19 pandemic. The CARES Act allowed certain employers to receive a tax credit for the first quarter of 2020 through the second quarter of 2021 . The American Rescue Plan (ARPA), passed in March 2021, extended the ERC (with certain restrictions) through the fourth quarter of 2021. The ERC’s complexity, combined with widespread marketing by promoters, created a backlog of questionable claims that the IRS is still struggling to review. As of August 2024, the IRS had disallowed 28,000 claims with an estimated worth of approxim...

  Starting July 1, 2026,  Maryland’s Family and Medical Leave Insurance (FAMLI) law   will provide up to twelve weeks of paid family and medical leave, with the possibility of an additional twelve weeks of paid parental leave, through a state-run program . Contributions from employers and employees to fund the program will begin July 1, 2025, and the Maryland Department of Labor (MDOL) is currently in the process of d eveloping regulations to implement this law. Quick Hits The Maryland Department of Labor has taken an extensive approach to rulemaking for the FAMLI program, including public engagement sessions and multiple iterations of draft and proposed regulations, with the latest section on dispute resolution now open for public comment. Proposed regulations for Maryland’s FAMLI program cover claims and dispute resolution, detailing procedures for benefit claims, employer responses, and appeals, while also highlighting significant employer concerns such as limited opti...