DOL Audits
Over the past year a number of contractors have been subjected to audits by Department Of Labor (DOL) Investigators. ARRA (American Recovery and Reinvestment Act) funding has reinvigorated enforcement activities. It has also become apparent that these audits are becoming more complicated to resolve.
In some cases the audits have increased in complexity; with the DOL Investigators asking for a myriad of company records, and then leaving for several weeks or months without finalizing the audit. This leaves the contractor in limbo and causes apprehension with their various customers. We recommend that in these cases the contractor send a letter to the DOL Investigator’s Supervisor and include a copy to the Regional Wage Specialist, asking for closure on the audit.
Some DOL Investigators threaten to withhold contract funds if compliance is in question. On Form WH-56 “Summary of Unpaid Wages”, the investigator will list all of the employees whom the investigator determines are due back wages. Investigators may also threaten debarment if contractors do not pay all the employees noted in the Summary of Unpaid Wages.
The Professional Service Council met with DOL officials last December at The Wage and Hour Division in Washington, DC due to the vast number of complaints regarding DOL Audits. The DOL agreed to send some representatives from their Wage and Hour staff to the PSC- SCA Training program in Wash DC. This program was held in March 2013 and has an upcoming session in October.
Any contractors, who do not have experienced personnel capable of handling DOL audits, may benefit by sending some of their employees to the next SCA training class that covers DOL audits.
If you would like additional information on SCA training programs, you may contact Albert Corvigno at acorvigno@marallc.com or call him directly at 252-312-4853.
For additional information relating to SCA compliance please click here to read “Avoiding the Compliance Pitfalls of the Service Contract Act” co-authored by Al Corvigno.
SCA Update
Effective June 19, 2013, the SCA health and welfare benefit increased to $3.81. Please click here to read the All Agency Memorandum Number 214.
At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your fringe-benefit obligations and provides your employees with valuable benefits.