The Importance of SCA Compliance and Recent DOL Violations

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  • August 26, 2014

Department of Labor (DOL) wage and hour investigations continue to be on the rise in 2014. This trend serves our industry with an important reminder that now is the time to review your company’s Service Contract Act (SCA) and Davis-Bacon Act (DBA) compliance.

A recent wage and hour investigation found a federal prison subcontractor in violation of the Service Contract Act by failing to pay proper prevailing wages, health and welfare benefits, overtime and holiday pay. As a result, the subcontractor must pay more than $8 million in back wages and fringe benefits to 362 current and former prison guards, maintenance workers and administrative personnel employed at California City Correctional Center. http://www.dol.gov/whd/media/press/whdpressVB3.asp?pressdoc=Western/20140819.xml

Are you Compliant?

Industry experts estimate that at least 50% of Contractors are currently out of compliance. Did you know that Contractors are also subject to fines and penalties, both civil and criminal, if their subcontractors are out of compliance with the DOL requirements?

Not knowing your duties is not a defense against compliance deficiencies! With penalties and sanctions becoming more frequent and often substantial, now is the time to put a strategic partner to work for you and your bottom line.

GSA understands the bid implications of SCA compliance and can help you navigate the ever changing and complex compliance landscape. Let our team of compliance experts be the asset that increases your ability to submit winning proposals.

To learn how GSA training could help you on your path to SCA and DBA compliance, or how to be prepared for a DOL audit, contact us at 1.800.250.2741 or sca@gsanational.com.

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