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Department of Labor Increases the SCA Health & Welfare Rate and Establishes Two Other Rates

On July 25, 2017, the Wage and Hour Division of the U.S. Department of Labor updated and increased the McNamara-O’Hara Service Contract Act (“SCA”) Health and Welfare (“H&W”) Fringe Benefit to $4.41 per hour (i.e., $176.40 per week or $764.40 per month). The increase will be effective as of August 1, 2017. This is an increase of 14 cents per hour, up from 2015-2016 rate of $4.27. The new update also included a rate for those employees who fall under Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors. A new reduced rate of $4.13 per hour (i.e., $165.20. Read More.

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Department of Labor Proposes Rule Implementing Paid Sick Leave

On September 7, 2015, President Obama signed Executive Order (“EO”) 13706, establishing paid sick leave for federal contractors. The EO requires federal contractors to establish a policy to provide at least seven paid sick days annually, including paid leave allowing for family care. The Secretary of Labor was given until September 30, 2016, to issue regulations on the EO, which goes into effect January 1, 2017. On February 26, 2016, the Department of Labor (“DOL”) published its Notice of Proposed Rulemaking (NPRM) implementing EO 13706. The DOL predicts that the proposed rule will have a significant impact on federal contractors. Read More.

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Employee or Contractor: Did you do the Research?

By: Anne Yancey , Director, State Credits & Incentives There is no single test for determining whether a worker is an employee or an independent contractor and for employers, the lines are often blurred in making the distinction. In the eyes of the Internal Revenue Service (“IRS”), proper worker classification is mainly determined by the degree of control a company has over the employee. In contrast, the Department of Labor utilizes an economic reality test. Given the changing dynamic of today’s workforce, employers must singly carefully consider the facts of each situation in making the determination. An incorrect determination could have severe. Read More.

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