As we previously reported last week, the Department of Labor announced an increase in the prevailing health and welfare fringe benefits rate under the Service Contract Act. The increase, $4.41 per hour from $4.27, is effective August 1, 2017. A significant item of note in this year’s All Agency Memorandum 225 (AAM 225) is the introduction of a special reduced health and welfare fringe benefit rate of $4.13 per hour for employees performing on contracts covered by Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors. GSA’s counsel is working to provide official guidance on this new wrinkle in the memorandum and will be released upon completion. If you have questions about these changes and how they impact your contract(s), contact us at solutions@gsanational.com or 1-800-250-2741 ext. 170.