PSAI Association Insight, August 4, 2021 I 25
Minimum wage increases for workers on government contracts. If your company
currently has contracts with the federal government—or if you are considering
getting into that line of work—this news is for you. In accordance with Executive
Order 14026, the wage you must pay your employees on covered federal contracts
will increase to $15 per hour, effective January 30, 2022. The order also indexes the
federal contract minimum wage in future years to an inflation measure and gradually
eliminates a lower wage for tipped workers. Currently the Department of Labor is
inviting public comment on the implementation rule for this order. If you would like
to learn more or comment by the deadline of August 23, 2021, click here.
Chip shortage will affect vehicles and gadgets for the foreseeable future.
Leaders of various companies have been vocal recently about the shortage of
computer chips and semiconductors that is vexing everyone from automakers to
smartphone manufacturers. Intel's CEO says the shortage could potentially last into
2023. The leaders at Volkswagen say the global shortage could worsen over the
next six months, and the Wall Street Journal (article behind a paywall here) reports,
"[Other automakers] have said they are bracing for problems through next year."
Reuters reports ING chief Iris Pang has said entrepreneurs "are seeking ways to
recycle 'used' chips, which implies the shortage isn't going away." The implications
for portable sanitation? Longer lead time for trucks and other vehicles (see Fleet
Owner and IEEE Spectrum for analysis), longer repair times, and higher per mile
expenses in the next one to two years.
Are investors bankrolling attorneys to sue you? It's possible. According to
Transport Topics, a leader in providing information on logistics and transportation
news, cash infusions for plaintiff's attorneys is on the rise. The trucking companies
they sue are then at a distinct disadvantage in court, and the plaintiffs are less likely
to accept a settlement offer from their insurance companies. These cash investors
have no stake in the case. They are simply bankrolling the lawsuit in hopes of gaining
some of the financial rewards. Call it an investment. Call it gambling. Either way, it is
apparently legal and may be one of the reasons companies with trucks on the road
are seeing their insurance premiums rise. Efforts to require disclosure are being
pushed by opponents of these activities. So far, according to Transport Topics, "Bills
introduced in Congress to require transparency by the litigation funders have not
been passed."
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