If you’re a government contractor, then you know all about the Service Contract Act (SCA). This act requires contractors to pay their employees fair wages and benefits, and is definitely a good thing. However, keeping track of compliance can get a little messy sometimes. In fact, there’s a chance you don’t actually know if you’re currently compliant.
If you’re not sure if your company is maintaining SCA compliance, don’t worry. We’ve put together 5 tips that will help you stay in-bounds and off the naughty list.
Make Sure You Understand the SCA
This should go without saying, but make sure you keep yourself brushed up on the SCA. The law changes from time to time, and you don’t want to be caught unaware.
For instance, on January 30, 2022, the minimum hourly wage for non-tipped DBA and SCA workers was increased to $15.00 an hour. If you’re not paying attention, you can find yourself on the other side of SCA compliance because of a change in the rules.
The best way to stay on top of the SCA is by reading the Department of Labor’s website on a regular basis. We recommend bookmarking it so you can easily check in and see if anything has changed.
Create a System for Tracking Compliance
Compliance isn’t always easy to track, but it’s important that you have some sort of system in place. This could be as simple as keeping a spreadsheet with all the pertinent information.
Your system should include:
- The name of each employee
- Their hourly wage (SCA and DBA)
- How many hours they work each week
- Any fringe benefits offered
This will help you keep track of everything in one place, and make sure you’re not missing anything important.
Regularly Review Your System
Once you have a system in place, it’s important that you review it on a regular basis. This will help ensure that everything is still accurate and up-to-date.
We recommend doing this at least once a month, but more often if possible. The last thing you want is to be caught off guard by an audit because your records were out of date.
Keep Good Documentation
In the event of an audit, good documentation can be your best friend. Make sure you keep track of everything related to SCA compliance, including:
- Copies of all employee contracts
- Payroll records
- Emails and correspondence with employees
If you have good documentation, it will be much easier to show that you’re in compliance if there’s ever any question.
Don’t Wait Until the Last Minute
This is probably the most important tip on this list. Don’t wait until the last minute to start thinking about SCA compliance. It should be something that you’re always aware of and working towards.
By following these tips, you can help make sure your company is always in compliance with the SCA. And trust us, staying compliant is a lot easier than dealing with the consequences of non-compliance. So do yourself a favor and stay on top of it.
We Can Help You With Compliance and More
Regulations are always going to be a part of the GovCon life. There’s just no way around that. And it’s not always easy keeping track of everything your company needs to be in compliance with. This is especially true for small to mid-sized government contractors.
That’s what BOOST is here for. We want your business to succeed, so we’re here to help you stay in compliance while you focus on the bigger things.
We’re experts in working with GovCon clients, and we understand that things are just different when your boss is the government. We’re more than happy to lend that expertise to help you grow and focus on success.
If you’re a government contractor who’s looking for help with back-office issues, contact us today, and let’s talk about how we can work together.