2019/2020 SCA Fringe Rates Issued

New Fringe Rates for SCA Contracts

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.

 

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. This is a modest increase from last year’s fringe benefit rate of $4.48 per hour. The new fringe rate is effective as of July 5, 2019.

 

This information can be found on the Wage Determination and WHD websites.

Grandfathered Benefit Continues

In 2004, the WHD announced in All Agency Memorandum 197 that it would increase the fringe benefit rate for all wage determinations and retain the two different methods for determining compliance. That policy will continue this year.

Both the employee-by-employee benefit and average cost fringe benefit rates will be $4.54 per hour, up to 40 hours per week (which is $181.60 per week, or $786.93 per month). Consistent with longstanding policy, the average cost fringe benefit wage determination will be issued only contracts in which the formerly grandfathered benefit rate would have applied

 

Don’t Forget EO 13706

Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors, requires that employers that contract with the federal government provide their employees with up to 56 hours of paid sick leave annually; this comes out to seven days paid sick leave. This rule applies to “new” government contracts entered into on or after the Executive Order’s effective date, January 1, 2017. This paid leave can also be applied to family care and any employee absences that occur as a result of domestic violence, sexual assault, and stalking.

Compliance. We got this.

At Boon, we understand that compliance is crucial and it’s our job to navigate the changing landscape so that you don’t have to. Click here to learn more about our comprehensive compliance services.

Our ability to create flexible plans that are customized to the fringe keeps you compliant and covered in the most cost-efficient way. Check out this post to learn more!

The Boon Blog is your resource for the latest in industry updates. You can also catch up with Boon on FacebookTwitter, and LinkedIn!

About The Boon Group

The Boon Group® is a full service employee benefits company specializing in the design, implementation and administration of cost-effective fringe benefit plans for federal, state and local government contractors. Since 1982, The Boon Group has developed a partnership philosophy that expands beyond the products and services we offer. We stand with the employers and employees who, just like all who work at The Boon Group, are faced with the daunting task of navigating the U.S. healthcare system. Together, we can find a better way for all Americans to access healthcare. The Boon Group, Inc. is the parent holding company of The Boon Insurance Agency, Inc., Boon Administrative Services, Inc. (formerly named CEBA), Boon Insurance Management Services, L.P., Health & Welfare Benefit Systems, Inc. and Boon Investment Group, Inc. The Boon Group was formed to support and strengthen the position of these companies as a wholesaler of exclusive products and services. www.boongroup.com
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