Course 7
Labor Compliance and Wage Determinations
Teaches users how labor rules, wage determinations, fringe, classifications, payroll, and subcontractor labor compliance affect pricing and performance.
What This Course Helps You Do
- Understand service and construction wage requirements.
- Read wage determinations.
- Classify workers by actual duties.
- Price fringe, holidays, overtime, and payroll burden.
- Review subcontractor labor compliance and cash-flow risk.
Templates
Module 1Labor Mindset
2 lessons
Lesson 1
Labor Rules Are Pricing Rules
Labor compliance must be considered before bidding because required wages and fringe can change the true cost of performance. A federal contract may require higher compensation than a commercial job.
Lesson 2
The Bad Win Labor Trap
A contractor can win by underpricing labor, then lose money or violate labor rules after award. Labor-heavy contracts need wage/fringe, staffing, payroll, and turnover analysis before submission.
Module 2Service Contract Labor Standards
2 lessons
Lesson 1
SCLS in Plain English
Many federal service contracts include minimum wage and fringe obligations for covered service employees. Look for SCLS, SCA, FAR 52.222-41, wage determinations, health and welfare, and labor classifications.
Lesson 2
Service Employees and Classification
Classify workers by actual duties, not internal job titles. Supervisors, mixed duties, subcontractor employees, and missing classes require careful review.
Module 3Wage Determinations and Fringe
3 lessons
Lesson 1
Wage Determinations
A wage determination identifies prevailing wage and fringe requirements for labor categories in a locality. Confirm WD number, revision, location, classes, wage rates, fringe, vacation, holidays, and CBA information.
Lesson 2
Fringe, Vacation, and Holidays
Wage is not the same as fringe. Contractors must understand health and welfare, vacation, holiday, PTO, and nonproductive paid time cost.
Lesson 3
Missing or Unclear WD
If covered work appears likely but the WD is missing, wrong, or incomplete, ask a specific clarification question before the deadline when possible.
Module 4Construction Wages and Certified Payroll
2 lessons
Lesson 1
Construction Wage Requirements
Covered construction, alteration, and repair work may require prevailing wages and fringe for laborers and mechanics. Construction wage determinations and certified payroll can affect price and administration.
Lesson 2
Construction Classifications
Construction roles like laborer, carpenter, electrician, plumber, HVAC mechanic, painter, roofer, operator, and others must be mapped to the applicable wage determination.
Module 5Subcontractors, Options, and Payroll
3 lessons
Lesson 1
Subcontractor Labor Compliance
Prime contractors should verify subcontractor labor assumptions, flow down labor clauses, and collect required support such as certified payroll, classifications, and fringe treatment.
Lesson 2
Option Years and Adjustment Clauses
Labor costs can change over multi-year contracts. Review option pricing, wage revisions, and clauses such as service contract labor standards price adjustment where applicable.
Lesson 3
Payroll, Records, and Employee Notices
Payroll systems may need to track hours by contract/class, wage, fringe, deductions, vacation/holiday, certified payroll, and subcontractor records. Covered workers may require notification of minimum compensation.
Final Exercise
- Choose a labor-heavy opportunity.
- Map roles to wage classes.
- Build loaded labor rates.
- Review subcontractor labor compliance.
- Decide bid/no-bid based on labor risk.
Final Takeaway
If labor is the main cost, labor compliance is not a side issue. It is the contract.