SCA Health and Welfare Fringe Benefit Changes

The prevailing health and welfare fringe benefit issued under SCA increased on June 17, 2011. The U.S. Department of Labor sent a memo dated June 10, 2011 to all contracting agencies of the Federal Government and the District of Columbia titled DOL ALL AGENCY MEMORANDUM NUMBER 210.

Effective June 17, 2011 the SCA health and welfare benefit increased from $3.50 to $3.59 per hour. You can find the updated postings on the Wage Determination and Wage and Hour Division (WHD) websites.

The agency memo includes a history of wage determinations, what contracts are affected and the wage determination for the state of Hawaii. If you have any questions about this memo, please feel free to contact Maral, LLC.

Many contractors have called us recently stating that their contracts have both fringe benefit rates in their respective wage determinations, and wondering if it is a mistake? We advised them that the “high” rate is only used for grandfathered contracts. Unless a new contract is issued which should have the “low” rate, there can only be one fringe rate on your contract for all sites under that procurement.

Please remember to have the contracting officer modify the new Health and Welfare rate in your contract before you begin paying it!