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Regulatory Developments and News : DOL issues proposed Rule re Nondisplacement of Qualified Workers Under Service Contracts
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| Posted by DigitalDominion on 2010/3/19 17:10:00 (464 reads) |
SUMMARY: This document proposes regulations to implement Executive Order 13495, Nondisplacement of Qualified Workers Under Service Contracts, signed by President Obama on January 30, 2009. The Executive Order establishes a general policy of the Federal Government that service contracts and solicitations for such contracts shall include a clause that requires the contractor, and its subcontractors, under a contract that succeeds a contract for performance of the same or similar services at the same location, to offer those employees employed under the predecessor contract whose employment will be terminated as a result of the award of the successor contract, a right of first refusal of employment under the contract in positions for which they are qualified. The Executive Order also directs the Department of Labor (DOL), in consultation with the Federal Acquisition Regulatory Council (FARC), to issue regulations, within 180 days of the date of the Order to the extent permitted by law, to implement the requirements of this Order. |
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News and Announcements from the ServiceContractAct.US webmaster : Welcome to ServiceContractAct.US
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| Posted by DigitalDominion on 2009/10/16 23:01:10 (379 reads) |
Welcome to ServiceContractAct.US - the "Web 2.0" website providing a legal and business resource for legal and industry professionals with an interest in the Service Contract Act via the Digital Dominion Network's Law and Business Network. This website is primarily focused upon serving legal, securities, and security and business professionals with an interest in the Service Contract Act. The Digital Dominion Law and Business Network provides primarily user generated content contributed by readers or reprinted from public domain sources. Each website of the Digital Dominion Law and Business Network is a "Web 2.0" website which provide multiple opportunities for user contribution, discussion, and sharing on featured topics. Watch this site and other websites of the Digital Dominion Network as we roll out new features. Register as a user and take advantage of the opportunity we offer to promote your business, share information, news and announcements of your group or organization, interact with fellow professionals or businesses who share your interest in the Service Contract Act via the internet, and keep abreast of current developments.
The first step to use our features and the features of other member websites of the Digital Dominion Law and Business Network is to register as a user on our site. Then, as you explore ServiceContractAct.US let us know what feature or news you want to share. Upon verification, we can give you privileges to input and post your news instantly.
Experts and professionals in a given topic may list themselves via our various "Experts Directories" and receive free promotion via banners ads, links and the ability to post news and announcements. Businesses may also list themselves for free in our Virginia Business Directory and grow their business via the world wide web.
Contributing writers may even profit by contributing content as qualifying contributors can earn financial rewards via Google Adsense or banner ad sales from clicks by visitors to the news, announcement and content you supply.
ServiceContractAct.US is what is known as a "Web 2.0" website - i.e. a feature that is composed of contributions by those who view and participate in the site. Anyone can participate. In order to post, you must be a registered user of the website. Posting is subject to our Terms of Use as linked from the bottom of our Home Page. By posting, you adopt and agree to our Terms of Use and News and policies applicable to various features as a binding legal agreement. These include (i) a representation by you that the post is accurate, does not contain any copyright content of any third party unless you have the right to post it, (ii) a prohibition against any posting that is slanderous, illegal, containing "hate" material," (material expressing racial, religious, sexual orientation or other bigotry) or known to you to be untrue, (iii) a representation by you that if posting on behalf of an organization or other person, that you have the right to make such posting, (iv) an acknowledgment by you are aware that the information provided on this website is general and nature and does not take into account any facts or circumstances that may be unique to your personal situation or circumstances, (v) an acknowledgment and agreement by you that no duty of confidentiality arises or exist with respect to any information submitted to ServiceContractAct.US or any other website in the Digital Dominion Law and Business Network whether by E-mail, posting, or otherwise, and (vi) an acknowledgment and agreement by you that to the extent that by use of this website or any other website in the Digital Dominion Law and Business Network, you engage in a communicative dialogue with any licensed professional attorney, accountant, financial adviser or otherwise, no client relationship of any kind or nature shall arise or exists and no such professional who post information or otherwise responds to you through or by means of ServiceContractAct.US or any other website in the Digital Dominion Law and Business Network shall have any obligation, duty or liability to you whatsoever unless you and such professional enter into a separate agreement. Violators of our Terms of Use are subject to loss of posting and/or website access privileges. If you observe any posting which violates our Terms of Use, please notify us via our contact link (on the Home Page) and report the abuse and we will endeavor to promptly investigate and remove if appropriate.
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Service Contract Act of 1965
Top Articles, News & Announcments
 | Frequently Asked Questions Pertaining to the Issuance of Wage Determinations Under the McNamara-O'Hara Service Contract Act (SCA) of 1965, as Amended |
Why do wage rates go down? Posted by DigitalDominion
(92)
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| The information used most frequently to establish prevailing rates is the Bureau of Labor Statistics (BLS) survey data. Based on BLS survey data the Department of Labor must issue rates which are represented in the survey as prevailing. Therefore, rates could decrease if surveys show that a lower rate is actually prevailing. |
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[702]
Can the contractor pay the employees their fringe benefits in cash instead of furnishing the required fringe benefits?
Yes. Fringe benefit obligations may be discharged by paying to the employee on his regular payday, in addition to the monetary wage required, a cash amount per hour in lieu of the specified fringe benefits, provided such amount is equivalent to the cost of the fringe benefits required. Records are kept separately showing the amounts to be paid for fringe benefits.
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[464]
DOL issues proposed Rule re Nondisplacement of Qualified Workers Under Service Contracts
SUMMARY: This document proposes regulations to implement Executive Order 13495, Nondisplacement of Qualified Workers Under Service Contracts, signed by President Obama on January 30, 2009. The Executive Order establishes a general policy of the Federal Government that service contracts and solicitations for such contracts shall include a clause that requires the contractor, and its subcontractors, under a contract that succeeds a contract for performance of the same or similar services at the same location, to offer those employees employed under the predecessor contract whose employment will be terminated as a result of the award of the successor contract, a right of first refusal of employment under the contract in positions for which they are qualified. The Executive Order also directs...
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[410]
How is the health and welfare rate derived?
The health and welfare rate is the result of a nationwide survey of private industry conducted by the Bureau of Labor Statistics. The Employment Cost Index private industry data is used to derive the single "total" benefits rate.
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[406]
If I'm working under a Collective Bargaining Agreement (CBA) for one company and another company wins the contract and hires me, can my salary drop?
No, not for the first year. The successor contractor's obligation is to insure that all service employees are paid no less than the wages and fringe benefits to which the employees would have been entitled, including prospective increases, if employed under the predecessor's collective bargaining agreement for the first year of the contract (i.e. irrespective of whether the successor's employees were or were not employed by the predecessor contractor). The obligation of the successor contractor is limited to the wage and fringe benefit requirements of the predecessor's collective bargaining agreement and does not extend to other items such as seniority, grievance procedures, work rules, overtime, etc.
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[386]
Is the health and welfare rate included in the hourly rate on the WD?
No. Fringe benefits are required to be provided separate from and in addition to the specified minimum hourly rate provided on the wage determination.
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[379]
Welcome to ServiceContractAct.US
Welcome to ServiceContractAct.US - the "Web 2.0" website providing a legal and business resource for legal and industry professionals with an interest in the Service Contract Act via the Digital Dominion Network's Law and Business Network. This website is primarily focused upon serving legal, securities, and security and business professionals with an interest in the Service Contract Act. The Digital Dominion Law and Business Network provides primarily user generated content contributed by readers or reprinted from public domain sources. Each website of the Digital Dominion Law and Business Network is a "Web 2.0" website which provide multiple opportunities for user contribution, discussion, and sharing on featured topics. Watch this site and other websites of the Digital Dominion...
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[373]
What does the health and welfare rate apply to, all hours worked or vacation and sick leave also?
Unless otherwise specified on the applicable wage determination, health and welfare payments are due for all hours, including paid vacation, sick leave, and holiday hours, up to a maximum of 40 hours per week and 2, 080 hours per year on each contract.
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[357]
Do employees receive fringe benefits when they are working under a wage determination?
Every covered contract in excess of $2,500 contains a provision specifying the fringe benefits to be furnished to service employees and must be paid in addition to the minimum wage. The fringe benefit amount is listed in the wage determination. SCA makes no distinction, with respect to its compensation provisions, between temporary, part-time, and full-time employees. However, temporary and part-time employees are only entitled to an amount of the fringe benefits specified in an applicable determination which is proportionate to the amount of time spent in covered work.
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[348]
I currently receive $2.56 per hour for health and welfare benefits. How will the new single benefit rate affect me?
The $2.56 (total benefit) rate will be grandfathered until the new single benefit rate reaches or exceeds $2.56. The grandfathered rate will not apply to contracts for new services.
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[312]
Does the Federal agency enter the CBA occupations on the Standard Form 98-A or leave it blank since the CBA is attached? Does the Federal agency enter the occupations not covered by the CBA on the same Standard Form 98-A?
Do not enter the CBA occupations on the SF 98-A. Only classes which are not covered by the CBA should be listed separately on the SF 98-A so that the appropriate area-wide wage determination can be issued for those classes of employees.
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