Benefits and Wages in Even vs. Odd Wage Determinations

What’s the difference in Even and Odd Wage Determinations when it comes to benefits and wages? 

For even-numbered Wage Determinations, unless otherwise specified in the applicable Wage Determination, health and welfare payments are due for all hours worked, including overtime, but not for any paid leave hours such as holiday, vacation, or sick leave.

Unless otherwise specified in the applicable Wage Determination, odd-numbered Wage Determinations state that health and welfare payments are due for all hours paid, including paid vacation, sick leave, and holiday hours up to a maximum of 40 hours per week and/or 2,080 hour per year. In addition to all this, in the state of California, paid lunches and rest breaks are subject to H&W if the contract has an odd-numbered wage determination.

When it comes to Wage Determinations (WD) in an SCA contract, there are two types to consider:

1. The first one is known as the prevailing WD, which is based on the wages commonly paid in the specific locality where the contract is taking place.
2. The second type is determined by Collective Bargaining Agreements (CBA), which are agreements negotiated between employers and labor unions.

Both Wage Determination types usually include certain requirements for vacation and holiday benefits. In a Collective Bargaining Agreement, the Health and Welfare is typically higher than the area WD. Not everyone has a CBA, but everyone in an SCA contract has a Wage Determination. A new area WD is released every year, but that does not mean the Contracting Office is going to incorporate the new WD in the next option year, though they are required to update the WD at least every 2 years.

Remember, the Contracting Office chooses the WD used in the contract, not the contractor. If you as an employer are choosing to give Health and Welfare as cash versus paid in benefits, it must be a separate line item on their pay stub. It's important to note that employers cannot use any wages paid in excess of the WD requirement to fulfill their Health and Welfare (H&W) obligations. They must keep proper records that clearly separate the amounts paid for wages from the amounts paid for fringe benefits.

For odd-numbered SCA wage determinations, there is a fixed cost H&W requirement that applies to all hours paid up to a maximum of 40 hours per week or 2,080 hours per year. On the other hand, even-numbered SCA wage determinations have an average cost H&W requirement that applies to all hours worked by all employees, including any overtime hours.

- Hailey Soupiset, Intern & Joshua Hinckley, VP Business Development