SCA H&W Rate Increases to $4.02 per hour Effective July 2014

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The prevailing health and welfare (H&W) fringe benefit rate was increased effective July 22, 2014 to $4.02 per hour, with the exception that the benefit rate in Hawaii will be $1.66. The new H&W rate  applies to “all invitation for bids opened, or other service contracts awarded on or after July 22, 2014.” The contracting agency must include a new wage determination reflecting the new H&W rate to trigger the contractor’s obligation to pay the higher H&W rate. The contracting agency may make “pen and ink” changes to the current wage determinations received for contracts beginning on or after July 22, 2014 and for which the updated rates were not included. 

Once the contracting agency provides a new wage determination, contractors must submit any claim for equitable adjustment as a result of increased costs attributable to wage determination rate changes within 30 days of the change. 

Topics:  Fringe Benefits, Health and Welfare Plans, Wages

Published In: Government Contracting Updates, Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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