52.222-42
Statement of Equivalent Rates for Federal Hires
FAR 52.222-42 requires contractors to provide an informational statement comparing contract service employee compensation to equivalent federal rates, but it does not establish actual wage requirements.
Overview
FAR 52.222-42, Statement of Equivalent Rates for Federal Hires, requires contractors to provide information on the classes of service employees expected to be employed under the contract and to state the wages and fringe benefits those employees would receive if they were federal employees. This clause is informational only and does not constitute a wage determination. It is intended to help contractors and employees understand the equivalent federal pay rates for comparison purposes, in compliance with the Service Contract Labor Standards statute and Department of Labor regulations (29 CFR Part 4).
Key Rules
- Identification of Employee Classes
- Contractors must list the classes of service employees expected to work under the contract.
- Statement of Equivalent Wages and Benefits
- Contractors must provide the monetary wage and fringe benefits each class would receive if employed by the contracting agency as federal employees.
- Informational Purpose Only
- The statement is not a wage determination and does not set actual pay rates for contract employees.
Responsibilities
- Contracting Officers: Must include this clause in applicable solicitations and contracts.
- Contractors: Must complete the statement, listing employee classes and corresponding equivalent federal wages and benefits.
- Agencies: Ensure compliance with the Service Contract Labor Standards and proper clause inclusion.
Practical Implications
- This clause helps ensure transparency regarding how contractor employee compensation compares to federal rates.
- It does not replace or override wage determinations issued by the Department of Labor.
- Contractors should not use this statement as the basis for setting actual pay rates but must complete it accurately for informational purposes.