sca compliance checklist part 3 - labor categories

LABOR CATEGORIES

Are your employees correctly classified under the contract?

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

Admin

I simplified the visual some, so we can use the info in the next slide. Think we can find a more SCA version?

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/

Admin

I think we need to show a "timecard" for Jane Doe with mulitple classifications, from the chart on the last page and a few that are not on it. Then show through breakouts Mulitple duties, non-sca, and non-traditional categories.

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

Misclassifications can lead to labor law violations which can impact future contract considerations

It can follow you around like a shadow

ComplianceViolation

Admin

Right idea, but the compliance violation needs to be part of the shadow.

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)

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

Thanks for Watching!

With Axim Fringe Solutions Group, LLC

Labor Categories

Your Partner in Contract Profitability

(240) 720-0313Axim Fringe Solutions Group

www.aximfsg.com [email protected]

@AximFSG

sca compliance checklist part 3 - labor categories

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