Contractual compliance – an alliterative term that you are probably very familiar with as a Schedule GSA contractor. We know this seems like a lot to follow, so let`s break it down into three main sections. If you find that your company has a contract that falls under the CAS, you must first review the salary determination(s) (WD) in your contract. Wage determinations are issued by the DOL (published online here) and list the minimum hourly wage rate required for insured employees, as well as the right to required vacation and hourly contribution to health and well-being (H&W) to which each employee is entitled. Payroll determinations are issued for each workplace classification, and compensation and benefits levels are based on the work performed and the geographic location where employees perform the work. Therefore, federal contractors must ensure from the outset that they correctly identify the determination of the wage that covers the right job, as well as the right geographic location. For all non-exempt SCA insured employees, contractors must identify the specific work tasks that each employee will perform under the contract or subcontract and “assign” those tasks to an appropriate DoL wage-setting work category to determine each employee`s SCA minimum wage. In some cases, government appeal documents (or even previous classifications of the predecessor contractor) may contain references to the appropriate work class, but keep in mind that the contractor is ultimately responsible for selecting the appropriate work class and is responsible for the effects of an inaccurate assignment. The SCA mapping process typically includes the following steps: Workers under the SCA are entitled to a minimum wage based on a determination of average rates and benefits for similar work in the private sector in the same region as the service contract by the Ministry of Labour. The McNamara-O`Hara Service Contract Act (“SCA”) is not an easy-to-navigate federal law, and C2`s payroll and human resources staff often receive questions from our government clients about whether the SCA applies to them, how to meet salary requirements, how to find the right wage regulations, and more. But the two most common questions customers ask are (1) the correct calculation of health and wellness benefits (H&W) and (2) the proper management of vacation usage or payments. Every contractor and subcontractor performing work subject to the FCC must keep certain records for each employee performing work under the contract. Below is a list of basic records to be retained for three years after completion of the work: According to the FCC, all persons employed by the contractor and/or subcontractor are considered service employees, with the exception of agents, administrative staff or other professional employees who are considered exempt under Part 541 of 29 CFR.
An exempt employee essentially has no legal protection under the FCC and the RSA. For example, an exempt worker is not entitled to overtime benefits. Contractors and subcontractors must identify their service employees before starting work. This may seem obvious; However, the statement of work must be compared to the job descriptions before the assignment and the actual tasks assigned to each employee after the assignment. Both the employee and the employer must understand the scope of their professional duties. Relying on pre-assignment can be detrimental to the employer alone, as an employee who is not on duty may inadvertently fall into the category of service employees. Contractors under contract for $2,500 or more must pay at least the minimum wage of $7.25 per hour, as set out in the Fair Labour Standards Act. In addition, contractors must pay overtime pay equal to one and a half times the regular hourly rates for each more than 40 hours per week. To further confuse matters, not all “service” contracts are subject to the requirements of the FCC.
Once it has been determined that the contract is subject to FCC regulations, the contractor and/or subcontractor must review the salaries and benefits prescribed under the FCC. The Department of Labor (DoL) sets wages at the rate applicable to a particular location through a series of procedures set out in U.S. Code, Title 41. If no wage establishment is set for a location, the contractor and/or subcontractor must pay their service employees a minimum wage set by the Fair Labour Standards Act (SFSL). However, if there is a collective agreement of a previous employer, the new contractor and/or subcontractor must comply with the collective agreement and remunerate them in accordance with it. As a safeguard and best practice, the contractor and/or subcontractor must submit their employee classifications and request confirmation from the client….