Determining the applicable wages and benefits as well as safety and health precautions applicable under the Services Contract Act (SCA) is a very demanding and tricky task. Every solicitation, award, modification or exercise of a new option, contract extension or change to the scope of work must reflect the wages and benefits reflected in the latest version of the Wage Determinations table issued by the Department of Labor (DOL) for positions covered under the SCA. To further complicate things, the yearly revisions to the Wage Determinations table demand corresponding changes to worker compensation. If you are adopting a VMS, make sure that your VMS vendor is aware of these guidelines from the SCA and has incorporated them in their compliance suite.
For government contracts under $2500, minimum wages for service employees are governed by the Fair Labor Standards Act. For service contracts over $2500, the contract must conform to the prevailing wages and benefits prescribed by the DOL. The DOL has established classifications of workers based on work performed, and associated wages and benefits correspond to each classification. In the absence of an applicable wage, federal minimum wages will apply.
A detailed list of the directions under the WD is provided below:
Services covered under the SCA cannot be performed in buildings, surroundings, or under working conditions which are unsanitary, hazardous, or dangerous to the health and safety of services employees. When a primary contractor needs to ensure the compliance of a subcontractor on the various aspects of the SCA, the www.wdol.gov can be very useful for verification purposes. The primary contractor may also contractually apportion liabilities in case of violations by the subcontractors..
If an employee is unclassified (does not fall under a classification on the Wage Determination) then the contractor must classify that employee by working with the Department of Labor (DOL) to establish an hourly wage and fringe benefits.
Contracting officers may elect to use the E-98 request form for any SCA-covered contract action to request an official wage determination if the position does not appear to be covered in the www.wdol.gov database. The employer must specify the type of service, its description, place of performance, union affiliation (if any) and details of services being performed under a collective bargaining agreement.
The employer is liable for any underpayments of compensation due to the employee engaged in the performance of the contract. Violations can be reported to any office of the Wage and Hour Division of the DOL. Non-compliance can result in severe consequences that include prohibition from participating in any government contract for three years, making the SCA an act which requires contractors to be alert and aware at all times and use tools like the E-98 to stay compliant.
Mail (will not be published) (required)
eight + = 16
Thanks for Subscribing to DCR Blog.