For anyone with a large number of employees who fall under the regulations of the Service Contract Act (SCA), an automated system is essential for ensuring that their employees are properly categorized, paid the prevailing wages and associated benefits, and receive earned vacation and holiday pay. Non-compliance must be immediately recognized and rectified, with audit trails kept without fail. The process for enforcing the SCA is complex and the consequences of non-compliance come in the form of a long, difficult and painful enforcement proceeding, instituted either by the Associate Solicitor for Fair Labor Standards or a Regional Solicitor.
Failure to meet the requirements of the SCA could lead to a hearing with the Administrative Law Judge (ALJ), requiring a satisfactory response to the allegations within a period of 30 days. A negative decision by the ALJ places the contractor on the list of companies ineligible for awards of government contracts.
As an effective procurement and labor management system, a Vendoe Management System (VMS) automates and controls worker and supplier requisitions, payments, and record keeping. From a truly customer-oriented VMS vendor, you may expect a compliance module which serves the crucial purpose of ensuring compliance with all requirements established by regulatory authorities.
A deep understanding of the requirements of the SCA is also required in order to create a VMS which ensures compliance with all its parameters. Some of the aspects of the SCA which require constant monitoring and suitable accommodation are detailed here:
One of the most effective ways to deal with all these requirements and emerge unscathed is to have a dependable VMS program handle these matters. In selecting a Vendor Management System, ask for a demonstration of its ability to handle the complexities of SCA compliance.
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