Following a five year hiatus, DOL has announced it will commence issuing new SCA wage determinations containing wage increases since it has now agreed on what surveys to use.  In light of uncertainty for service contract employees and to avoid potential catastrophic impacts on budgets of procuring agencies two limitations will be set:  (1) DOL will not reduce existing SCA wage rates and (2) DOL will “cap” annual increases in SCA wage determinations at 15 percent.  So, if an existing rate is $10 per hours and the survey data indicates a $14 per hour rate, then this year’s new wage rate will increase to $11.50 (15% higher only) while next year’s wage rate will likely be $13.23 (15% higher than the previous year’s $11.50).

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