Empowering Employees and Upholding Standards: Aldevra’s Commitment Under the Service Contract Labor Standards Act

At Aldevra, we pride ourselves on not just being a Service-Disabled Veteran-Owned Small Business (SDVOSB) and an 8(a) Small Disadvantaged Business, but also on our unwavering commitment to our employees. This dedication is reflected in our adherence to the Service Contract Labor Standards Act (SCLSA), a federal statute ensuring fair labor standards for employees working on federal contracts.

Understanding the Service Contract Labor Standards Act (SCLSA)

The SCLSA is a federal statue that plays a pivotal role in mandating safe working conditions, fair wages and rights for workers employed by government contractors like us.

Key Provisions of the Act:

• Minimum Wage and Fringe Benefits: We ensure our employees are paid no less than the wage rates and fringe benefits prevailing in their locality. This commitment is reflected in our rigorous adherence to wage determinations set forth by the federal government.
• Safe Working Conditions: Beyond fair compensation, we prioritize creating and maintaining a safe and healthy work environment, understanding its importance for our employees.
• Application: This Act applies to our service contracts exceeding $2,500, encompassing a significant portion of our operations.
• Compliance: We maintain stringent compliance with these provisions, keeping accurate payroll records and ensuring our subcontractors also uphold these standards.

Impact on Employees

Our employees are the backbone of our operations, and we ensure they are supported and valued. See below to see the different areas of impact SCLSA coverage has:

• Wage Security: By following the SCLSA, we guarantee that our employees who meet this classifcation, receive wages and benefits at least equal to the prevailing standards. Exact amounts are found on SAM.gov under Wage Determinations and vary by city and state.
• Benefit Plans: We establish comprehensive benefit plans, including health insurance, retirement benefits, and paid time off, to meet and often exceed the Act’s requirements.
• Enforcement and Redress: Employees can rest assured that any concerns regarding compliance can be addressed through established channels, including the Department of Labor (DOL).

Example of Benefits Breakdown for Heating, Ventilation and Air Conditioning (HVAC) Mechanic in New Orleans, LA (as of 12/26/23): 

• Wage Determination #: 2015-5189, available here.
• Minimum amount of base wage: $24.23 per hour.
• Health & Welfare: Additional $4.57 per hour, up to 40 hours per week.
  • (Note: Healthcare, insurance, 401k contributions and other benefits are subtracted from this amount and amounts vary based on coverages elected.)
• Sick Leave: 1 hour of paid sick leave for every 30 hours they work, up to 56 hours of paid sick leave each year.
• Vacation: 2 weeks paid vacation after 1 year of service with a contractor or successor, 3 weeks after 8 years, and 4 weeks after 15 years.
• Holidays: A minimum of eleven paid holidays per year:  New Year’s Day, Martin Luther King Jr.’s Birthday, Washington’s Birthday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day, and Christmas Day.

Determining Your Coverage Under the SCLSA as an Employee
It’s essential for our team to know if their roles fall under the SCLSA. Here’s a quick guide to help you determine this:

• Contract Type and Value: The SCLSA typically applies to federal service contracts exceeding $2,500. If you’re working on a service-oriented federal project, you may be covered.
• Job Classification: If your job title or title with similar duties appears in the wage determination for the contract, it’s a strong indicator that the SCLSA applies to your position.
• SCLSA References in Employment Materials: Check your job description, offer letter or other HR documents for mentions of the SCLSA or Service Contract Act (SCA).
• SCLSA -Related Benefits: Receiving benefits like health and welfare, as outlined under the SCLSA , suggests coverage.
• Ask HR or Your Supervisor: When in doubt, reach out to the HR team or your supervisor for clarification.

What if Your Position Isn’t SCLSA Covered?
If you find that your specific job title or position is not listed on the Wage Determination (WD) attached to the contract, this typically means that your role does not fall under the SCLSA coverage. Here’s what you should know:

• SCLSA Applicability: The SCLSA applies to specific job classifications determined by the Department of Labor (DOL). If your role is not included, it suggests that the SCLSA’s wage and benefit requirements do not govern your position.
• Alternative Regulations or Standards: Even if the SCA does not cover your role, Aldevra is committed to fair and competitive compensation and benefits for all our employees. Our policies ensure that every team member is valued and receives equitable treatment. Aldevra adheres to all applicable local, state, and federal laws and standards.
• Further Clarification: For any concerns or questions about how this affects your employment, our HR team is readily available to provide assistance and clarification.

For Contractors: Aldevra’s Approach

As a federal service contractor, we understand the importance of diligence in complying with the SCLSA. This includes:

• Wage Determinations: We regularly review and adhere to the latest wage determinations, ensuring our compensation packages remain competitive and fair.
• Record Keeping: Accurate payroll records are essential not just for compliance, but for transparency and trust.
• Subcontractor Compliance: We hold our subcontractors to the same high standards, ensuring a fair and ethical supply chain.

Conclusion

At Aldevra, adhering to the Service Contract Labor Standards Act (SCLSA) is more than a legal requirement; it’s a reflection of our values. As an employee-focused company, this commitment to fair and safe work practices is part of our broader mission to empower and support our staff. We are dedicated to providing an environment where our employees can thrive, mirroring the respect and integrity they deserve.