McNamara-O'Hara Service Contract Act (SCA) E-tools. It is hypocritical, but it is what it is. Stay up to date with the latest developments impacting employment requirements under federal contracts. See 29 CFR 4.173(c)(2). Also, Wage and Hour Division (WHD) will continue to issue SCA wage determinations based on the average cost method of … Recipients of federal government contracts for services are subject to wage, hour, benefits, and safety and health standards under the McNamara-O'Hara Service Contract Act (SCA) of 1965, as amended, which specifies wage rates and other labor standards for employees of contractors. They are not required to use their vacation, nor is unused vacation involuntarily cashed out annually. There is no accrual or vesting of vacation eligibility before the employee’s anniversary date of employment, and no segment of time smaller than 1 year need be considered in computing the employer’s vacation liability, unless otherwise specifically provided for in a particular wage determination. If it doesn’t all get used, the balance must be cashed out immediately after they get the next  tranche of vacation benefits. Additionally, to offset (some of) the additional costs of the paid leave required by EO 13706 (Paid Sick Leave, applicable to contracts made or amended on or after January 1, 2017), an alternate (lower) SCA H&W fringe benefit rate of $4.22 applies, and will also remain the same for another year. For Single County Authorities (SCA) Your SCA office information can be found on our new County Drug & Alcohol Offices page. So how can they audit it? If no such determination has been made applicable to this contract, then the Federal minimum wage as established by section 6(a)(1) of the Fair Labor Standards Act of1938, as amended, (29 U.S.C. On June 29, 2020, the DOL WHD (AAM 232) announced that the 2019 SCA Health and Welfare benefit rate of $4.54 / hour in Wage Determinations for contracts made, amended or renewed on or after July 5, 2019 will remain the same for another year. DOL takes its regulations literally, and they expressly require in the regulation an annual payout. Potomac, MD 20854, (301) 637-7800 They want to be employee friendly, but they don’t think the carry forward of leave balances, which is just an unfunded benefit, with no out of pocket cost to the employer, is really so employee friendly. The SCA has additional reporting requirements regarding fringe benefits. The Wage Determination filters to the left ask a series of questions to determine if the best WD is available on the site. This wage determination therefore reflects the actual CBA wage . Say you are a model employer and service contractor for the Federal Government. Wage Determinations Search. Division C of the Consolidated Appropriations Act, 2020 (the Fiscal Year (FY) 2020 Act), contains two provisions that affect the determination of pay adjustments for certain prevailing rate (wage) employees in FY 2020. SCA Eligible Category SCA Equivalent Code – Title SCA Wage Determination Number Administrative Assistance 01311 – Secretary I 05-2103 . The McNamara-O’Hara Service Contract Act (“SCA”) is not an easy federal statute to navigate, and C2’s Payroll and HR personnel frequently get questions from our government contracting clients about whether the SCA applies to them, how to meet the pay requirements, how to find the correct wage determinations, etc. If no wage determination has been made applicable to the contract, employees performing work under the contract must be paid not less than the federal minimum wage provided in section 6(a)(1) of the Fair Labor Standards Act . DOL ostensibly will not even allow SCA covered workers to elect, even at the individual worker’s own option, to cash out or carry forward the unused vacation. 9) Service Act Wage Determination - Applicable to Divers and Diver Tenders (2020 … 4.173(c)(2). If that is one week of vacation, that is the minimum; if more is required by the wage determination, like 2 to 5 weeks of vacation after accounting for the employee’s length of service, the minimum may be higher. The irony here is that Federal Government employees, including the DOL investigators, can build up their leave, carry it forward almost indefinitely, don’t have to use it, and can even get credit for it when they retire towards their length of service. Employees end up being furnished more than the minimum vacation benefit in one year, and less in the earlier period. No good deed goes unpunished. Large back benefit damages may arise pursuant to the carry forward provisions of a SCA covered vacation plan. Effective June 29, 2020, the Health and Welfare Fringe Benefit Rates will remain $4.54 for those affected Service Contract Act wage determinations.The low-level (employee-by-employee) benefit will remain $4.54 per hour or $181.60 per week or $786.93 per month. Where a prevailing wage determination specifies “1 week paid vacation after 1 year of service with a contractor or successor,” an employee who renders the 1 year of service continuously becomes eligible for the 1 week paid vacation (i.e., 40 hours of paid vacation, unless otherwise specified in an applicable wage determination) upon his/her anniversary date of employment and upon each succeeding anniversary date thereafter. Copyright © 2018-2019 Abrahams Wolf-Rodda, LLC. “. The employee has one year to use it in a bona fide leave plan. Second, the annualization rule  makes it possible for DOL to track the vacation benefit. It is possible an individual DOL investigator may look the other way, or warn you to change your practices, or just make you pay-off the excess balances in the leave account; but it is just as possible that they will punish you for giving more flexibility to the workers. All rights reserved. If any criteria such as a specific location is not present or the non-standard service does not strictly apply, please click here to submit an e98 form. Service Contract Act Blanket Wage Determination (2015-5527 Rev. © 2020 PILLAR PUBLISHING, LLC | All rights reserved | Disclaimer, Increased Statutory Acquisition Thresholds. SERVICE CONTRACT ACT FULLY LOADED HOURLY RATES WAGE DETERMINATION San Los Riverside San Mont- Warner San Oklahoma Saint Pearl INFORMATION Francisco Angeles & San Diego Norfolk gomery Robbins Antonio Ogden City Columbus Carlisle Louis Harbor CA CA Bernardino CA VA AL GA TX UT OK OH PA MO HI You ask if there is a minimum that has to be paid out. They want to give the workers the maximum flexibility in using or accumulating vacations benefits. Wage determinations fall under two categories: Davis-Bacon Act (DBA) WDs and … The Wage and Hour Division of the U.S. Department of Labor has released the new fringe rates for 2019/2020 for all contracts and contractors under the Service Contract Act. Employers cannot count on getting an informal exception to that rule. It depends on the wage determination and the employee’s length of service. If any criteria such as a specific location is not present or the non-standard service does not strictly apply, please click here to submit an e98 form. If that is one week of vacation, that is the minimum; if more is required by the wage determination, like 2 to 5 weeks of vacation after accounting for the employee’s length of service, the minimum may be higher. DOL thus requires annual use or cash out of the vacation benefit under the SCA. The duties of employees under job titles listed are those described in the "Service Contract Act Directory of Occupations", Fifth Edition, April 2006, unless otherwise indicated. Such subminimum wages are referred to as “commensurate wage rates” and are less than the basic hourly rates stated in an SCA wage determination and/or less than the FLSA minimum wage of $7.25 per hour. info@awrcounsel.com. USDOL Guidance on Overtime Exempt (i.e Salary) Employees: Sept 2019 Fact Sheet: Final Rule to Update the Regulations Defining and Delimiting the Exemptions for Executive, Administrative, and Professional Employees Features of the new beta.SAM.gov website include: Search-based structure: Users may search for a variety of information including specific Davis-Bacon Act and McNamara … Additionally, to offset (some of) the additional costs of the paid … The Bankruptcy Code only protects a portion of accumulated paid leave claims and gives it priority. Per All Agency Memorandum 230, the rate for any prevailing health and welfare fringe benefits issued under the SCA will increased to $4.54 per hour. The problem is three fold. (301) 686-7470 fax If workers carry it forward, then they may not be working on a SCA contract in the future and DOL will have no way of knowing if an SCA benefit was forfeited. Employment Law Guide - Prevailing Wages in Service Contracts Index 2020-1 general prevailing wage journeyman determinations General prevailing wage determinations made by the director of industrial relations Pursuant to California Labor Code part 7, chapter 1, article 2, sections 1770, 1773, and 1773.1. It recently noticed, via the Federal Register, that the 2020 minimum wage for most of these employees will increase from $10.60 to $10.80. And, third, annualization also helps control large accumulated leave balances which might go unpaid in bankruptcy proceeding in the future. The low-level (employee-by-employee) benefit will remain $4.54 … The McNamara-O’Hara Service Contract Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. But DOL has a show me the money rule here. If any criteria such as a specific location is not present or the non-standard service does not strictly apply, please click here to submit an e98 form. See 29 C.F.R. The low-level (employee-by-employee) benefit will remain $4.54 per hour or $181.60 per week or $786.93 per month. Manuals The vacation vests on the anniversary date. Sign up with your email address to receive news and updates. A “wage determination” is a procedure as set out in the United States Code, Title 41 which sets the prevailing locality rate of pay. The Locality Pay Survey (“LPS”) portion of the National Compensation Survey published by the Bureau of Labor Statistics (“BLS”) previously served as the primary data source for determining prevailing wage rates under the Service Contact Act (“SCA”). A wage determination is a listing of wage rates and fringe benefit rates for each labor category of workers which the U.S. Department of Labor has determined to be prevailing in a given area. The SCA applies only to service contracts not exceeding 5 years, and strict compliance with its terms are required. The Department of Labor (“DOL”) has released a Memorandum specifying a few changes for Wage Determinations (“WDs”). However, the required benefit must be furnished before the employee’s next anniversary date, before the current contract is completed, or before the employee terminates employment, whichever occurs first. If you do voluntarily furnish more vacation than the minimum, the excess vacation benefit beyond the SCA requirements can be carried forward provided that you aren’t using it quarterly as a credit to SCA H&W benefits. Below is a list of the various documents associated with the current grant agreement between DDAP and the SCAs. That is the rule. 206) current on the anniversary date of a multiple year contract or the beginning of each renewal option period, shall apply to this contract. Most SCA wage determinations are revised periodically, as new health and welfare benefits or wage survey data become available. Here is DOL Field Operations Handbook (“FOH”) summary of the rule: (d) Accrual or vesting and payment of vacation benefits. 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