SCA Fringe Rate Increase 2012

The US Department of Labor Wage and Hour Division increased the Service Contract Act's most prevalent fringe rate to $3.71 from $3.59 in a notice on June 11, 2012. The new $3.71 rate takes effect on most new contracts or option periods that occur on or after June 17, 2012. Contractors must remember that this increase is not automatic and the contracting officer must implement it before it goes into effect.

Contractors should be aware that Hawaii has a unique rate and there also may be different rates for certain select industries. Contractors should review applicable wage determinations to identify appropriate fringe rates. A copy of the Wage and Hour memorandum can be downloaded below:
U.S. Departmrnt of Labor Memorandum SCA Fringe Rate Increase 2012