The Importance of SCA Compliance and Recent DOL Violations

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  • February 5, 2019

Department of Labor (DOL) wage and hour investigations are on the rise. This trend serves our industry with a critical reminder to review your company’s Service Contract Act (SCA) and Davis-Bacon Act (DBA) compliance efforts.

On September 13, 2018, the US DOL announced that it found that a California-based contractor and five of its subcontractors had violated federal contract provisions of the McNamara-O’Hara Service Contract Act (SCA). Its investigation determined that the contractor owed over $3.5 million to 1,416 workers for failing to pay federal prevailing wages and required health and welfare benefits to workers. There is also a separate DOL investigation for SCA violations regarding a federal contract to move military cargo that was stored at the contractors warehouse site.
https://www.prnewswire.com/news-releases/justice-for-port-drivers-leading-logistics-company-at-ports-of-lalong-beach-with-long-track-record-of-breaking-labor-and-safety-laws-resulting-in-7-disruptive-labor-strikes-chooses-to-abandon-workers-rather-than-reach-agreement–300779963.html

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 National 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.

If you have questions or concerns about your organizations operations as they relate to the Service Contract or Davis-Bacon and Related Acts, contact us at sca@gsanational.com or phone 1-800-250-2741 ext. 170.

Whether you are looking for a free phone consultation, a short-version Service Contract Act Lunch & Learn overview, or full day SCA training for your practitioners, GSA National has a solution for you.

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