Overtime Requirements Of FLSA And CWHSSA

Overtime Pay On SCA Contracts

  1. The SCA does not require overtime pay, but FLSA and/or CWHSSA overtime pay requirements may apply to SCA contracts. 29 C.F.R. §§ 4.180 and 4.181.
  2. FLSA has the broadest application, and contractors/subcontractors performing on contracts subject to the SCA may be required to compensate their non-exempt employees working on or in connection with SCA-covered contracts for overtime work pursuant to the FLSA overtime pay standards.
  3. CWHSSA applies to any service contract in excess of $100,000 that may require or involve the employment of laborers, mechanics, guards, or watchmen.
  4. CWHSSA applies to laborers, mechanics, guards, and watchmen for the time spent on covered contract work only (i.e., all time each employee spent working on covered contracts - excluding all commercial, non-government work). (Service employees on the contract who are not laborers, mechanics, guards or watchmen, are not subject to CWHSSA).
  5. FLSA requires the payment of time and one-half the "regular rate of pay" for all hours worked in excess of 40 hours in a week. See 29 C.F.R. §§ 778.107-778.109.
  6. CWHSSA requires the payment of time and one-half the "basic rate of pay" for all hours worked in excess of 40 hours in a week. The "basic rate of pay" under CWHSSA is the individual's straight time hourly rate and cannot be less than the required "basic hourly rate" (generally listed in the "RATE" column) in an applicable SCA wage determination.
  7. In computing overtime obligations under the FLSA and CWHSSA, the contractor may exclude contributions to "bona fide" fringe benefit plans and/or cash payments made to meet fringe benefit requirements in an applicable SCA wage determination. 29 C.F.R.§§ 29 C.F.R. §§ 4.177(e) and 778.7.
  8. For example, for an employee who worked 44 hours on a covered contract as a janitor, where the wage determination rate for a janitor is $15.00 (basic hourly rate) plus cash payments of $3.71 in lieu of health and welfare fringe benefits per hour per employee, the correct computations under the FLSA and CWHSSA would be:
    1. 40 hours x $ 3.71            = $ 148.40 in fringe benefits
      44 hours x $15.00           = $ 660.00 for prevailing wages
      4 hours x $15.00 x ½       = $ 30.00 for FLSA and/or CWHSSA O/T
                                                 $ 838.40
    Note that for a wage determination including the "average cost" benefits the benefits would be computed for all hours worked ($3.71 x 44 = $163.24).
  9. CWHSSA and FLSA do not require premium pay or overtime compensation for work on holidays, weekends, or days of rest. 29 C.F.R. § 778.102.
  10. CWHSSA and FLSA overtime pay requirements do not apply to non-work hours, such as paid holidays and paid leave. Such hours are not counted in the computation of overtime pay required under these federal overtime laws. Their overtime pay requirements apply only to hours worked. 29 C.F.R. § 778.218. Rules concerning "Hours Worked" are at 29 C.F.R. § 785.

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