The upward trend in the Department of Labor’s Wage and Hour Division (WHD) investigations continued at a record breaking rate in 2019. Also increasing were the number of investigations finding violations (1,571), the highest level since 2015. This trend serves our industry with a critical reminder to review your company’s compliance efforts.
In its 2019 report, the DOL revealed that it collected $322 million in back-wages owed to workers. “We are delivering more back wages for workers than ever before, and we are steadfastly eliminating any unfair economic advantage employers may try to gain by skirting the rules. We are protecting those who do the right thing, pay their employees what they have legally earned, and operate in compliance,” said the WHD’s new administrator, Cheryl Stanton.
The most alarming concern in the government contracting space is the record increase in violations found in Service Contract Act investigations. 2019 saw SCA investigation records recorded in total violations (56,042), number of employees receiving back wages (34,201), and total back wages being awarded ($64,861,303)!
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.
We Can Help
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 Act, contact us at firstname.lastname@example.org or call 1-800-250-2741 ext. 170.
Whether you are looking for a free phone consultation, a high-level Service Contract Act Lunch & Learn overview, or full day training custom-geared for your team, GSA National has a solution for you.
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