The Service Contract Act and Davis Bacon Acts provide for an hourly fringe rate to be paid toward health and welfare benefits for government contractors providing services or construction to government facilities. The current hourly fringe for the SCA is $3.16 an hour and DBA fringe varies depending on the job and location but is ussually higher than the SCA fringe. The sad truth is that over 50% of SCA contractors and almost all DBA contractors choose to pay the fringe out in cash, which is alowed in lieu of benefits, the contractor must then pick up the additional payroll tax burden which is not compensated by the government. This option is a lose for all involved, and the loop hole needs to be closed. The employee is expected to purchase his or her benefits with the money or put it toward retirement, but it is more often then not used for regular expenses. with over 300,000 people working on these contracts the government is spending over $2,000,000,000 to ensure medical coverage is provided to this group, but the vast majority can be counted as the America's uninsured. Companies such as FCE Benefit Administrators, and the Boon Group speacialize in group plans geared to the hourly fringe for the responsible contractors.
Service Contract ActRead the text of the amended McNamara-O’Hara Service Contract Act of 1965 on the Department of Labor’s web site.
Labor Standards for the Service Contract ActFind out about labor standards as contained in Chapter 6, Title 41 of the United States Code. Access pertinent text by clicking on the appropriate code section.
Davis-Bacon ActThis Act was originally approved on March 3, 1931. It mandates that all federal government construction contracts and most contracts for federally assisted construction over $2,000.00 must contain the appropriate Davis-Bacon wage determinations. Read the text of this amended Act on the Department of Labor’s