2019 Year-in-review for prevailing wage contractors

2019 updates for prevailing wage and fringe benefits


The Department of Labor implemented major changes in 2019 which will affect government contractors and their prevailing wage workforces for years to come. At Archer Jordan we thought it worthwhile to put together a concise re-cap of the more significant shifts which contractors will find most critical.

Big changes around overtime benefits and bonuses
In December the Department of Labor issued its first significant update around benefits, bonus compensation and overtime pay in 50 years. This ruling frees employers to offer a wider range of benefits to workers.
More on that here.

New beta.sam.gov website roll-out
In June the DOL began unifying over a dozen websites and portals into their new flagship “beta.sam.gov” website. This will be the GSA’s acquisition systems portal and THE primary U.S. government website hub for both Davis Bacon and Service Contract Act contracts.

Annual fringe rate and minimum wage rate changes
In September the U.S. Department of Labor announced the federal contractors minimum wage would move to $10.80 as of January 1st 2020. In July of 2019 the fringe rate under Service Contract Act adjusted to $4.54.
Service Contract At Rate Change
Federal Contractors Minimum Wage

Non-displacement no-more
October 31 of 2019 President Trump revoked Executive Order 13495. This order mandated that when a service contract expires and a follow-on contract is awarded to a new contractor for the same service (at the same location) the new contractor must make good faith employment offers to all previously covered employees.
More on that here. 

Big cyber security changes on the horizon
In September of 2019 the Department of Defense unveiled a new draft of the Cybersecurity Maturity Model Certification (CMMC). The model is set to “go-live” and integrate with open RFP’s in June of 2020. From that point every defense contract will use the CMMC in determining a company’s ability to bid for contracts.
More on that here.

With all of these changes and updates it is more critical than ever for government contractors to stay on top of prevailing wage regulations and policies. At Archer Jordan we are experts at building and administering fringe benefit solutions that ensure government compliance, increase bid competitiveness and protect workforces.

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