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The Department of Labor’s Wage and Hour Division Made An Important Announcement

July 23, 2021

Per 29 C.F.R. subsection 4.52, the prevailing wage health and welfare fringe benefit rates will be increased under the McNamara-O’Hara Service Contract Act effective July 16th, 2021.

The new health and welfare fringe benefit rate will be $4.60 per hour.  This will impact both the employee-by-employee and average cost benefit rates.

Bids & Contracts Subjected to Executive Order 13706:

For contracts subject to EO 13706 (Paid Sick Leave for Federal Contractors), the new health and welfare fringe benefit rate will be $4.23 per hour.


The SCA health and welfare fringe benefit rate will remain at $1.94 per hour.

All invitations for bids opened and service contracts awarded on or after July 16th, 2021, must include an updated SCA WD that complies with the regulatory health and welfare fringe benefit determination methodology.  Please check with your local state regulators for any fringe rate changes that may be taking place at the state or municipal levels as they are often reflective of the federal fringe rate.

As the first company to offer a complete solution for prevailing wage workers, we have more than 40 years of experience analyzing government contractor’s needs, then creating and implementing the right plans benefit plans. We are prevailing wage experts, and we’re dedicated to helping you succeed. Our plans and services come fully administered and we maintain your compliance.

Fringe Benefit Group And eMars Simplify Compliance For Government Contractors

May 5, 2021

AUSTIN, Texas — May 4, 2021Fringe Benefit Group,  an industry leader in the design, implementation and administration of benefits for hourly and part-time workers, today announced it has established a partnership with eMars to simplify compliance reporting for government contractors using Fringe Benefit Group’s prevailing wage benefit plan, The Contractors Plan.

Fringe Benefit Group is known for its full-service suite of tools and services that greatly reduce the burden of plan enrollment and administration for employers. eMars’ Compliant Client is an easy and efficient way to audit payroll contributions from any payroll. Contractors must certify each week’s payroll and eMars’ verification process uses a Web browser to provide real-time validation of prevailing wage payroll compliance prior to certification and release of funds. Compliant Client ensures that contractors and their subcontractors have the correct prevailing wage base and fringe benefit amounts for the job classification of the jurisdiction where the work is being performed.


According to Brian Robertson, Executive Vice President of Fringe Benefit Group, “Mutual clients of The Contractors Plan and eMars will have a tool to avoid non-compliant contributions and ensure their employees receive bona fide fringe benefits that are accurate.”

The Contractors Plan has nearly four decades of experience providing bona fide fringe benefits to construction contractors who compete under prevailing wage regulations such as the Davis-Bacon Act and state prevailing wage laws. Many non-union contractors pay workers comp and general liability insurance premiums as well as payroll taxes (e.g. FICA) by combining required fringe amounts with base wages and funding the total on the employee’s paycheck. These fringe contributions on the paycheck can create unnecessary payroll burden costs of tens of thousands of dollars per year. The Contractors Plan allows employers to offer bona fide benefits, including a wide variety of health and retirement plan options, to their workforce with minimal administrative burden.

Wage and Hour Issues Additional Guidance on Workplaces Laws

July 31, 2020

The Department of Labor’s Wage and Hour Division (WHD) recently published additional guidance for employers and workers on how the requirements and protections of the Family and Medical Leave Act (FMLA), the Fair Standards Act (FLSA), and the Families First Coronavirus Response Act (FFCRA) affect the workplace. The WHD understands how critically important this information is to employers and workers.

This guidance is the latest addition to compliance assistance materials that address critical issues in all three laws. The information provided includes a Fact Sheet for Employees, a Fact Sheet for Employers, and a Questions and Answers resource about paid sick and expanded family and medical leave under the FFCRA.

WHD has also released two FFCRA guidance posters, one for federal workers and one for all other employees, and offers simple Quick Benefits Tips to determine how much paid leave the FFCRA allows employees to take.

Furthermore, WHD provides employers and employees information on everyday issues they face when responding to the coronavirus and its effects on wages and hours worked under the FLSA and job-protected leave under the FMLA at

U.S. DOL Announces 2020 SCA Fringe Rate

July 16, 2020

The Health & Welfare Fringe Benefit Rates will remain $4.54 for those affected Service Contract Act wage determinations.

The low-level (employee-by-employee) benefit will remain $4.54 per hour or $181.60 per week or $786.93 per month. Also, Wage and Hour Division (WHD) will continue to issue SCA wage determinations based on the average cost method of compliance. The high-level (average cost) benefit rate will remain $4.54 per hour.

Additional SCA Health & Welfare Fringe Benefit Rate Information

All service contracts that contain paid sick leave (EO 13706) will utilize the lower fringe rate of $4.22 SCA health & welfare benefit rate.

Click here for more information.

DC Paid Family Leave

July 14, 2020

On July 1st, the District of Columbia (DC) Office of Paid Family Leave (OPFL) began working with employers and workers to administer the paid leave benefits under the DC Paid Family Leave Act (the Act). The Act is an insurance program that governs whether a worker will be eligible for paid leave benefits.

The Paid Leave Act provides up to 8 weeks to bond with a new child, six weeks to care for a family member with a severe health condition, and two weeks to care for your serious health condition. Employees may take any combination of family, parental, and/or medical leave up to the limits stated in a 52-week period. The Paid family leave may be taken intermittently; however, the combined leave total may not exceed eight weeks in the 52 weeks.

A qualifying business is any business performing services in DC that pays unemployment insurance (UI) taxes for its employees.  Once an employer has paid UI tax for one fiscal quarter for their worker, they will automatically be recognized as a covered employee for paid family leave. The paid leave benefits are paid by the DC government and funded by a quarterly employer payroll tax.

The OPFL will be hosting outreach and engagement events that include the Paid Family Leave webinars on:

Thursday, July 16, 2020

PFL Webinar

1:30 – 2:30 p.m. EST


Thursday, July 30, 2020

PFL Webinar

1:30 – 2:30 p.m. EST


WHD Cancels In-Person Prevailing Wage Seminars in 2020

July 7, 2020

The Wage and Hour Division (WHD) announced they would not be hosting in-person Prevailing Wage (PW) seminars for the rest of 2020. The cancelation of in-person workshops is due to safety and health concerns related to the COVID-19 pandemic.

Instead, the WHD plans to offer virtual PW seminars that will provide training and outreach on topics such as the Service Contract Act, the Davis-Bacon Act, Executive Orders 13658 and 13706, wage determinations, and conformances, and compliance assistance and enforcement processes.

Additional updates on virtual seminar dates and registration will be coming soon. For more information and compliance assistance resources on prevailing wages, please visit the Davis-Bacon and Related Acts webpage.

OSHA Issues Memorandum to Further Address COVID-19 Crisis

July 7, 2020

On May 19th, 2020, the Department of Labor’s Occupational Safety and Health Administration (OSHA) published both the Revised Enforcement Guidance for Recording Cases of COVID-19 as well as the Updated Interim Enforcement Plan. These memoranda demonstrate that OSHA is applying its enforcement efforts to assure employers and workers during the COVID-19 public health crisis.

The Revised Enforcement Guidance for Recording Cases provides interim guidance to Compliance Safety and Health Officers (CSHOs) for the recording of occupational illnesses, specifically cases of COVID-19. Because of the challenge with determining work-relatedness, OSHA is exercising enforcement discretion to assess employers’ efforts in making work-related determinations.

The Updated Interim Enforcement Response Plan stipulates guidance and instructions to Area Offices and compliance safety and health officers (CSHOs) for handling COVID-19-related complaints, referrals, and severe illness reports. These updates are to take effect on May 26th, rescinding previous memorandums and are intended to be time-limited to the current COVID-19 pandemic.

Under the updated plan, “where community spread of COVID-19 has significantly decreased,” OSHA will prioritize inspections per its pre-COVID-19 policy, returning to the status quo. In geographic regions where community spread has elevated or resurged, OSHA will “continue prioritizing COVID-19 fatalities and imminent danger exposures for inspection.” Other than the “geographic area” framework, the enforcement plan outlined in the April 10th guidance largely remains intact.

For more details visit  and

WHD Southeast Region to Offer FFCRA Webinars This Week

July 7, 2020

The U.S. Department of Labor Wage and Hour Division (WHD) will be offering webinars during the week of May 18th for businesses and state and local governments in the WHD’s Southeast Region aimed at helping to educate them on the Families First Coronavirus Response Act (FFCRA).

These webinars will cover the FFCRA requirements, including information on eligibility, qualifying reasons, coverage, duration of leave, and calculation of pay. The webinars offered are:

•    Wednesday, May 20th, 2020, at 10:00 a.m. to 11:00 a.m. EDT.  FFCRA for Employers Registration

•    Friday, May 22, 2020 at 10:00 a.m. to 11:00 a.m. EDT.  FFCRA for State and Local Governments Registration

Though the webinars are free, space is limited and requires pre-registration. Those interested in the webinars are asked to pre-register online before the events. Once registered, attendees will receive a confirmation email with additional login information.

For information about the webinars:

Federal COVID-19 Response Bill “3.5”; Additional Funding To Key Areas

July 7, 2020

On April 24, 2020, President Trump signed a nearly $500 billion coronavirus “Phase 3.5” relief bill that designates additional funds to the small business rescue program known as the Paycheck Protection Program (PPP). The relief bill does not add new programs, nor does it impose any new obligations on employers; instead, it solely provides additional funding for the federal COVID-19 response to support small businesses, hospitals and to help enhance COVID-19 testing.

The relief bill includes:

  • $320 billion in additional funds for the PPP, a loan program designed to help small businesses with the economic fallout from COVID-19. Initially, lawmakers had allocated $349 billion to the PPP as part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, but the program was exhausted three weeks later. Of the new funding, $60 billion would be set aside for smaller lending institutions with the intent of reaching underbanked businesses.
  • $10 billion for Emergency Economic Injury Disaster Loans (EIDL) grants, plus $50 billion more for loans.
  • $50 billion for SBA’s Disaster Loans Program Account
  • $75 billion for the Public Health and Social Services Emergency Fund to support health care providers and local hospitals by providing reimbursements for COVID-19 related expenses, public health services, and lost revenue for uninsured Americans infected by COVID-19.
  • $25 billion for COVID-19 testing, including $1 billion for testing costs for individuals without health insurance, $1 billion for the U.S. Centers for Disease Control and Prevention (CDC), and $11 billion for states and municipalities.

DOD Issues Class Deviation to Alleviate Impact of COVID-19 on Contractors

July 7, 2020

The Department of Defense (DOD) announced that the Defense Pricing and Contracting (DPC) office issued a class deviation to allow payments to contractors who cannot work due to COVID-19. The class deviation guidance seeks to provide relief to the contracting community who may be affected by COVID -19.

The DPC office issued the class deviation to the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS) entitled, “CARES Act Section 3610 Implementation.” The deviation addresses section 3610 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, allowing agencies to reimburse contractors for payment to employees who otherwise are prohibited from working due to facility closures or other restrictions caused by COVID-19.

Also, to recognize the importance of supporting affected contractors, the deviation guidance offers a framework for contracting officers to assess any claimed allowable costs associated with the declared public health emergency.

More information is available at