WDWAGE (Determination)

What is WDWAGE (Determination)?

A WDWAGE (Wage Determination) is a document issued by the U.S. Department of Labor (DOL) that outlines the minimum wage rates and fringe benefits required to be paid to various classes of service employees performing work on federal service contracts exceeding $2,500. These determinations are essential for ensuring fair labor practices and compliance with the McNamara-O'Hara Service Contract Act (SCA).

Definition

A Wage Determination (WD) is essentially a minimum wage and benefit schedule established for a specific geographic area and type of service. It's incorporated into federal service contracts and dictates the legally mandated minimum compensation levels for service employees. The DOL issues two primary types of WDs: area-wide determinations, applicable to broad geographic regions, and collective bargaining agreement (CBA) determinations, which reflect wage rates and benefits established through union negotiations. These determinations ensure that service contractors pay employees a fair wage reflective of the local labor market and the nature of the work being performed. Ignoring WD requirements can lead to significant penalties, including back wage assessments, contract termination, and debarment from future government contracts.

Key Points

• Applicability: Wage Determinations apply to contracts where the primary purpose is to furnish services to the government through the use of service employees.
• DOL Responsibility: The U.S. Department of Labor (DOL) is responsible for issuing and updating Wage Determinations.
• Contractor Obligation: Contractors are legally obligated to adhere to the wage rates and fringe benefits outlined in the applicable Wage Determination.
• Compliance Monitoring: Government agencies and the DOL actively monitor contractor compliance with WD requirements through audits and employee complaints.

Practical Examples

1. Janitorial Services Contract: A government agency awards a contract for janitorial services at a federal building in Washington, D.C. The contract includes a Wage Determination specifying the minimum hourly wage and fringe benefits (e.g., health insurance, vacation time) for janitors in the D.C. area. The contractor is legally required to pay its janitorial staff no less than the rates outlined in the WD.
2. IT Support Services Contract: A contract for IT support services at a military base in San Antonio, TX, includes a Wage Determination for computer support specialists. The WD specifies different wage rates based on experience level and job classification. The contractor must ensure that its IT support staff are classified correctly and paid accordingly.
3. Food Service Contract: A contract for food service at a national park in Yosemite, CA, includes a Wage Determination for food service workers. This WD dictates the hourly wage and benefits that the food service contractor must provide to its employees, covering positions such as cooks, servers, and dishwashers.