As a follow-up to Aronson’s webinar on Service Contract Act Basics and Pricing Implications, we have provided answers to several attendee questions below.
What should be done if the job function of my employees doesn’t match a job function in the Wage Determination (WD)? If the job function is for a “service employee” covered by SCA and does not align with a Directory of Occupations labor category identified in the WD, then a conformance process needs to take place. For more information on the conformance process, click here.
Can wages and health and welfare cash payment (cash in lieu of benefits) be paid together in one paycheck? Cash paid in lieu of benefits to satisfy the health and welfare requirement may be included on the same paycheck as wages but must be identified as a separate pay type and NOT added to wages.
To which hours do the health and welfare requirement apply? Continue reading »
Effective June 17, 2012, the prevailing health and welfare fringe benefits required by the McNamara-O’Hara Service Contract Act (SCA) increased from $3.59 to $3.71 per hour. The Department of Labor (DoL) issued Memorandum Number 211 on June 11, 2012, 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 – Continue reading »
After delaying the planned start of the 2011 reporting cycle to October 1 (from August 1), the start is delayed once more. Contractors will have up to 60 days from the time the system is operational to submit their report which is now expected to begin on November 1, 2011 and end December 30, 2011.
The timeframe for information used to complete a VETS100/100A report (known as the “reporting period”) will still remain the same, despite the change to filing cycle timeframe (August 1 to November 1). DOL notes, “if you have been directed to file immediately by a Federal Contracting Officer so that funds may be obligated to a contract, you may file for the 2010 cycle via the instructions below. Please note, this does not constitute a registration or filing for the 2011 cycle. Registering and Filing for the 2011 cycle is unavailable at this time.”
The U.S. Department of Labor’s Wage and Hour Division will host a free online conference to provide information on federal rules concerning prevailing wages and other labor law requirements. The conference will be webcast live from 10 a.m. — 3 p.m. EDT on Tuesday, October 4, and Wednesday, October 5, 2011.
Conference participants will learn: Continue reading »
The Department of Labor (DOL) Wage and Hour Division has released the schedule for its 2011 Prevailing Wage Conferences. Conference participants will have the invaluable opportunity to learn directly from the DOL about:
- The Davis-Bacon Act (DBA) and McNamara O’Hara Service Contract Act (SCA),
- The process for obtaining wage determinations (WD) and adding classifications,
- Compliance assistance and enforcement processes,
- The process for appealing wage rage, coverage, and compliance determinations, and
- The labor standards provisions of the American Recovery and Reinvestment Act of 2009
This free training will be offered in the following cities on the following dates – Continue reading »
Labor law can be a tricky area for government contractors. There are lots of ways to get in trouble and chances are, you don’t know what all of them are. Under the Obama Administration, the Department of Labor (DOL) has hired 150 new investigators who are actively pursuing directive investigations rather than waiting for complaints. Additionally, the DOL has also made its enforcement data publically available online so all the skeletons are coming out of the closet. Now is the perfect time to register for these upcoming DOL events:
12/9/10 Affirmative Action Program (AAP) Development and Preparing for a Desk Audit (Baltimore, MD)
12/14/10 Compliance Assistance Seminar for Construction Contractors (Richmond, VA)
12/16/10 Equal Employment Opportunity (EEO) Obligations of Construction Contractors (Baltimore, MD)
12/21/10 12 Reasons Why Contractors Get in Trouble (Richmond, VA)
Private sector employers who employ 100 or more employees and government contractors who employ 50 or more employees are required to file an annual EEO-1 report with the U.S. Equal Employment Opportunity Commission’s EEO-1 Joint Reporting Committee. For instructions on filing, please click the following link: EEO-1 Report
Under VEVRAA (Vietnam Era Veterans’ Readjustment Act of 1972) and as amended by the Jobs for Veterans Act, regulations require government contractors to file an annual VETS-100/100A report with the Veterans’ Employment and Training Service of the U.S. Department of Labor as follows:
- Government contractors with contracts and/or subcontracts in the amount of $25,000 or greater prior to December 1, 2003 that have not been modified on or after December 1, 2003 should file a VETS-100 report.
- Government contractors with contracts and/or subcontracts in the amount of $100,000 or greater on or after December 1, 2003 should file a VETS-100A report.
For additional filing information, please click on the following link: DOL Federal Contractor Program
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.
Effective June 21, 2010, most Government contractors will be required to post notices in the work place advising employees of their rights under the National Labor Relations Act. The final rule was published on May 20, 2010 as 29 C.F.R. Part 471. The notice addresses (1) the employees right to join an union and bargain collectively, (2) ways in which employers may violate the employees rights, and (3) remedies available to employees who feel that their rights have been violated. The required text is included in Appendix A to Subpart A of the final rule. Contracts below the simplified acquisition threshold are exempt.
The Department of Labor is hosting a webinar on the new rule on June 3, 2010 from 2 to 3:30. Here is a link to the registration page for this webinar.
On June 17th, Aronson will offer our popular free seminar “Independent Contractor or Employee: Classification is the Elephant in the Room!“ focused on the issue of worker classification. This is one of those tricky compliance issues that everybody knows about, but nobody wants to talk about. With more and more states passing legislation to penalize employers who misclassify workers, audits are a valid concern for all businesses. Don’t be intimidated by this important topic – instead, be informed! Join Aronson & Company and FosterThomas for this insightful event on June 17th at FosterThomas’ Corporate Office that addresses how your company can prepare for audits and reduce liability.
Interested in the specific impact on the construction industry? See recently republished article, “New Employee vs. Independent Contractor Considerations – What You Need to Know Today and for the Future“ by Tim Cummins, Officer of Aronson and Company’s Construction Industry Services. This article was republished in the March 2010 edition of the Washington Building Congress (WBC) Bulletin available for download via the following link: https://www.wbcnet.org/Bulletin/Bulletin-March-2010-FNL.pdf.
Don’t forget, on June 17th, Aronson & Company’s tax experts will help you gain an understanding of the issue, the costs to your business of noncompliance, and steps you can take toward compliance. Seats are limited, so register today!
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)