Paid Time Off (Holiday and Vacation Pay) differs between Davis Bacon / Davis Bacon Related Acts (DBA/DBRA) and the Service Contract Act (SCA).
For DBA/DBRA, Holiday and Vacation Pay is specifically allowed by law if calculated and funded in a way that complies with other listed requirements. One of these requirements is that the benefits program must be administered by a trustee or a third party, not affiliated with the employer, subject to an enforceable commitment. This is frequently a very large expense incurred by the employer where no Prevailing Wage credit is taken.
For SCA, a Holiday and Vacation schedule is often defined in the contract’s wage determination. Eligibility for holiday pay, seniority date considerations, and calculations for part-time employees are specific and detailed. Vacation requirements must be complied with in full on an annual basis.
Where there is a mixture of federal, state, and private work, the most restrictive rule applies. It is vital for a contractor to have a Paid Time Off program that explains to the necessary level of detail.
