At the end of July, the Department of Labor (DOL) announced that federal contracts operating at Job Corps Centers will now be subject to Service Contract Act (SCA) requirements. As outlined in the revised Field Operations Handbook, the Wage and Hour Division deleted the SCA exemption for federal contracts to operate Job Corps Centers. Prime and subcontractors are now required to adhere to the SCA and FAR 52.222-41, Service Contract Labor Standards, according to the DOL.
Covered contractors now must provide “bona fide” fringe benefits, allocate and track fringe dollars, provide monthly reporting, etc., for all of their SCA employees. If you’re not well-versed in the complicated regulations of SCA management, you could easily find yourself being audited by the DOL and paying for compliance infractions.
Failure to comply with the DOL’s SCA requirements can result in fines, suspension, or debarment. Compliance with the Service Contract Act is imperative to your success. You need a subcontracting partner like AXIM that is an expert in SCA compliance and benefits administration to remove the internal cost and liability of managing SCA compliance in house.
As the first and only health and welfare administration and SCA compliance firm that’s also a government contractor, you can trust the professionals at AXIM to prepare you for these changes. Reach out to one of our talented consultants today to learn more about AXIM’s SCA compliance and benefits solutions or follow us on LinkedIn for more tips on how to mAXIMize your potential.
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