by Chris Porter, National Director, Sales & Marketing
July 14, 2015
The U.S. Department of Labor Wage and Hour Division increased the Service Contract Act’s most prevalent fringe rate to $4.27 from $4.02 in a notice published on June 30, 2015. The new 25-cent rate increase takes effect on most new contracts or option periods that occur on or after June 30, 2015. The Department of Labor stated, “All invitation for bids opened, or other service contracts awarded on or after June 30, 2015, must include an updated SCA WD issued in accordance with the regulatory health and welfare fringe benefit determination methodology.”
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 may also be different rates for certain select industries. We recommend that contractors review applicable wage determinations to identify appropriate fringe rates. A copy of the Wage and Hour memorandum can be viewed at: