Recent DOL Violations and the Importance of Compliance

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  • June 25, 2015

Compliance with the Service Contract Act and Davis Bacon and Related Acts is receiving more attention than ever from the Department of Labor (DOL). The DOL Wage and Hour Division’s continued commitment to investigations is underscored by aggressive hiring of new investigators, who now constitute 60% of their workforce.

Southern California contractor to pay more than $92K in back wages, fringe benefits to 27 workers

The DOL’s Wage and Hour Division recently recovered $92,912 in unpaid wages and fringe benefits for 27 workers employed by Christian Brothers Mechanical Services Inc., a Mira Loma-based subcontractor. An investigation found that the heating, ventilation and air conditioning subcontractor violated the prevailing wage and fringe benefits requirements under the Davis-Bacon and Related Acts while servicing two U.S. Army Corp of Engineers’ contracts at the March Air Reserve Base in Riverside between 2011 and 2014.

The DBA requires that all contractors and subcontractors performing work on federal and certain federally funded construction projects pay their laborers and mechanics at least the prevailing wage rates associated with their occupation, as determined by the secretary of labor.

Read the details of this violation here, http://www.dol.gov/opa/media/press/whd/WHD20151115.htm

Dallas contractor to pay more than $288K in fringe benefits, prevailing wages to 58 Dallas workers following DOL investigation

Deval LLC, a federal contractor for loan servicing support, did not pay its employees the prevailing wages or fringe benefits they rightfully earned under the McNamara-O’Hara Service Contract Act. The company has a contract with the U.S. Department of Housing and Urban Development.

The SCA requires contractors and subcontractors performing services on prime 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.

Read more about this violation here, http://www.dol.gov/opa/media/press/whd/WHD20150845.htm


Will your employee benefit plan stand the test of a DOL audit?

GSA has been partnering with government contractors since 1991 to design compliant fringe benefit solutions. We offer custom tailored products to meet the designated health and welfare fringe rate for any government contract.

We can help! A GSA compliance review is a detailed and thorough analysis of your fringe benefit costs for compliance with DOL requirements. Call us today at 1-800-250-2741, or email us at solutions@gsanational.com with questions or for a free consultation.

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