The Department of Labor's recent update to a paid sick leave mandate for certain federal contractors can reduce other benefits already offered to employees under the Service Contract Act (SCA). The update to SCA health and welfare benefits rates requires contractors to pay workers a designated benefits rate, either as a portion of their paychecks or through a separate benefits fund.
“Sick leave was viewed as a new benefit above and beyond the health and welfare benefit that was provided to contractor employees,” Government Contracts attorney Eric Crusius said. “This all-agency memorandum essentially takes away that added benefit” and “does so in a way that makes life more complicated for contractors, too.”
READ: Update to Obama Sick Leave Rule Revives Contractor Opposition (subscription required)
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