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LABOR CATEGORIES
Are your employees correctly classified under the contract?
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The Concept Seems Straightforward…
Employees who work under multiple labor categories or that have duties that tough to put into a category will complicate things.
Technician III
Personal Assistant IV
Drafter II
Personal Assistant I
Personal Assistant II
Technician I
Technician II
Drafter III
Drafter IV
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It Is Not Easy for Anyone.
In reality, it can become much more painful
“Lockheed Martin overbilled for work performed by employees who lacked required job qualifications
but whose work was billed at the rate for qualified ones.”
*http://www.govexec.com/contracting/2014/12/lockheed-martin-unit-forfeits-275-million-overbilling/101844/
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DoL Rule: Employee without divided classified hours gets paid the highest rate for all hours
worked
Supervisor: $20/hr. x 40 hrs.
= $800
Carpenter II:
$18/hr.
Carpenter I:
$16/hr.
The DoL’s “Lost Toll Ticket” System
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Misclassifications can lead to labor law violations which can impact future contract considerations
It can follow you around like a shadow
ComplianceViolation
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Your OptionsEliminating cross-classification
• This means employees only works one Labor Category
• This can add to inefficiency (increased head count)
• Costly (direct labor dollars)
Doing More with Less, Correctly (Strategic Partner)
• Let us handle your compliance burden and liability
• Prevent time-consuming DOL audits
Dedicated Man Hours (Doing more with less)
• Training office staff to monitor this information
• Still may not be correct
• Costly (increased indirect labor dollars)
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Axim FSG Your Strategic Partner
• Reduce HR costs &
workload
• As an SDVOSB, our
services are at no
cost to your bottom
line
• Allocate resources to
more efficiently
manage compliance
& fringe benefits
• Auditable Record
Keeping
An Expert to Navigate Labor Categories for you
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Thanks for Watching!
With Axim Fringe Solutions Group, LLC
Labor Categories
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Your Partner in Contract Profitability
(240) 720-0313Axim Fringe Solutions Group
www.aximfsg.com [email protected]
@AximFSG