The Service Contract Act Program (SCA/SCLS) is for contractors with employees working exclusively (or nearly so) on federal Service Contract Act (SCA/SCLS) contracts. SCA Fringe Benefit requirements, such as Health & Welfare (H&W) rates, Vacation, and paid Holidays, are often defined by each contract. There are also federal sick leave requirements.
One monetary advantage any SCA contractor may have is how the Health & Welfare rate fringe requirement is addressed. The guidelines to be in compliance and receive the maximum allowable credit for the fringes paid are definite and defined.
Service Contract Act (SCA/SCLS) employees are unique simply due to how an employee become an employee. New contracts often bring the contractor an inherited set of new employees. A contractor may be an employee’s fourth or fifth employer, even though it is the same job to the worker. Because of this, the SCA worker’s mindset is truly different than a typical company hire.
How a contractor incorporates inherited SCA/SCLS workers as part of their company is key to contract success.
