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October 3, 2008    DOL Home > Compliance Assistance > By Topic > Benefits >
Benefits under Federal Contracts
  

Benefits:

Benefits under Federal Contracts


 Frequently Asked Questions

OVERVIEW

For employees working under certain government contracts, holidays and vacation benefits may be required. In other instances, however, there is no such requirement. In those cases, the extent of the leave and whether it is paid in whole, in part, or not at all is generally a matter of agreement between an employer and an employee (or the employee's representative).

COMPLIANCE ASSISTANCE MATERIALS

BASIC INFORMATION

FACT SHEETS

POSTERS

RECORDKEEPING

  • Under the Davis-Bacon and Related Acts (DBRA), covered contractors must maintain payrolls and basic records and submit certified weekly payrolls. Although use of Form WH-347 is optional, the form will satisfy the requirements of Regulations, Parts 3 and 5 (29 CFR, Subtitle A), as to payrolls submitted in connection with contracts subject to the DBRA. Records to be maintained include:
    • Name, address, and social security number of each employee;
    • Each employee's work classification(s);
    • Hourly rate(s) of pay (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof);
    • Daily and weekly numbers of hours worked;
    • Deductions made; and
    • Actual wages paid.

    See 29 CFR 5.5(a)(3) for further information.
  • Each contractor and subcontractor performing work subject to the McNamara-O'Hara Service Contract Act (SCA) shall maintain certain records for each employee performing work on the covered contract. The following is a list of the basic records that must be maintained:
    • Name, address, and social security number of each employee;
    • Correct work classification(s), wage rate(s), and fringe benefits provided (or rate(s) of fringe benefit payments provided in lieu of fringe benefits);
    • The number of daily and weekly hours worked by each employee; and
    • Any deductions, rebates, or refunds from each employee's compensation.

    See 29 CFR 4.6(g) for further information.
  • The Contract Work Hours and Safety Standards Act (CWHSSA) requires each covered contractor or subcontractor to provide a weekly statement of the wages paid to each of its employees engaged in covered work. The statement shall be executed by the contractor or subcontractor or by an authorized officer or employee of the contractor or subcontractor who supervises the payment of wages and shall be on form WH-348, “Statement of Compliance,” or on an identical form on the back of WH-347 “Payroll (For Contractors Optional Use”) or on any form with identical wording. Within seven days after the regular pay date for the pay period the statement shall be delivered to a representative of the federal or state agency in charge at the site of the building or work.

APPLICABLE LAWS AND REGULATIONS

  • The McNamara-O'Hara Service Contract Act (SCA) - Requires contractors and subcontractors performing services on federal or District of Columbia contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement.
  • The Davis-Bacon and Related Acts (DBRA) - Requires that all contractors and subcontractors performing work on federal or District of Columbia construction contracts in excess of $2,000, pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits for corresponding classes of laborers and mechanics employed on similar projects in the area. The prevailing wage rates and fringe benefits are determined by the Secretary of Labor.
  • 29 CFR 4.170 to 4.177 - Regulations concerning benefit payment obligations of employers covered by the SCA.
  • 29 CFR 5.25 to 5.29 - Regulations concerning benefit payment obligations of employers subject to the DBRA.

DOL CONTACTS*

  • Employment Standards Administration (ESA)
    Wage and Hour Division
    200 Constitution Avenue, NW
    Room S-3502
    Washington, DC 20210
    Contact WHD
    Tel: 1-866-4USWAGE (1-866-487-9243)
    TTY: 1-877-889-5627
    Local Offices

  • For questions on other DOL laws,
    please call DOL's Toll-Free Help Line at 1-866-4-USA-DOL. Live assistance is available in English and Spanish, Monday through Friday from 8:00 a.m. to 8:00 p.m. Eastern Time. Additional service is available in more than 140 languages through a translation service.
    Tel: 1-866-4-USA-DOL
    TTY: 1-877-889-5627

*Pursuant to the U.S. Department of Labor's Confidentiality Protocol for Compliance Assistance Inquiries, information provided by a telephone caller will be kept confidential within the bounds of the law. Compliance assistance inquiries will not trigger an inspection, audit, investigation, etc.



Phone Numbers