Service Contract Act H&W increased
Effective June 22, 2010, the prevailing health and welfare fringe benefits required by the McNamara-O’Hara Service Contract Act (SCA) increased to $3.50 per hour. The Department of Labor (DoL) issued a memorandum on June 9, 2010, announcing the change. The new benefit rate is derived from the latest DoL Bureau of Labor Statistics, Employment Cost Index, summary of Employer Cost for Employee Compensation.
Don’t let the increase impact your bottom line – know your rights as a Federal contractor. – “Fair Labor Standards Act and Service Contract Act-Price Adjustment (Multiple Year and Option Contracts)” as well as FAR 52.222-44 “Fair Labor Standards Act and Service Contract Act-Price Adjustment” authorize adjustment of fixed price SCA-covered contracts when SCA wage determinations require an increase to the minimum wage or fringe benefits. Contractors are allowed an hourly adjustment equal to the new hourly fringe benefit rate less the hourly cost of the actual benefits provided by the contractor.
Do not delay; the FAR clauses also stipulate that the claim must be submitted within 30 days of the effective modification incorporating a new wage determination.
Aronson Contributors
Categories
Popular Tags
Blog Roll
Popular Posts
What We Are Writing
- A Marriage of Inconvenience: GSA Schedule Contracts & The Contractor Code of Business Ethics & Conduct Clause
- Emerging Small Businesses: To Grow Your Business, You Must Plan For Growth
- Government Contracting: Look Before You Leap!
- GSA Schedules – Strategies for Success
- New Employee vs. Independent Contractor Considerations
- Pay on Display – Understanding the Executive Compensation and Subcontractor Data Reporting Requirements & Ramifications
- The GSA Schedule: Your Ticket to the Federal Market (May 2010)
- The New FAR Codes of Conduct and Compliance Program Provisions
- The Seven Deadly Sins (of contract compliance)