1. Home
  2. |Insights
  3. |Department of Labor Issues New Health & Welfare Fringe Benefits Rates for Contracts Covered by the Service Contract Act

Department of Labor Issues New Health & Welfare Fringe Benefits Rates for Contracts Covered by the Service Contract Act

Client Alert | 1 min read | 08.08.17

On July 25, 2017, the Department of Labor issued its annual memorandum increasing the health and welfare fringe benefits rate (H&W rate) for contracts covered by the Service Contract Act from $4.27 per hour to $4.41 per hour, with corresponding increases from $1.78 per hour to $1.91 per hour for Hawaii. In a new measure, the DOL set the H&W rate for contracts covered by Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors, at $4.13 per hour ($ 1.63 per hour in Hawaii) to account for the additional paid sick leave benefits covered contractors must provide under E.O. 13706. These new H&W rates must be included in all bids or other service contracts awarded after August 1, 2017, but the rates do not automatically apply to existing contracts until contracting agencies modify the contracts with an updated wage determination.

Insights

Client Alert | 4 min read | 07.02.25

FTC Orders Divestitures in Retail Fuel Outlet Deal and Signals a Return to More Standard Remedy Discussions

Merger consent orders are back at the FTC, and the FTC’s most recent action showcases how the current leadership is analyzing divestiture proposals. Last week, the FTC approved a proposed consent agreement in Alimentation Couche-Tard Inc.’s (ACT) acquisition of retail fuel outlets from Giant Eagle, Inc. that paired standard retail divestitures with a “prior notice” requirement that ACT notify the agency of future acquisitions in certain markets regardless of size. This FTC has signaled greater acceptance of remedies than the prior administration, and this most recent consent puts that on display, with Commissioner Meador providing merging parties guidance on designing effective remedies....