Compliance Auditing

Not sure if you are compliant? Let us help minimize your risk! Onsi Group stays up to date on the latest changes and provisions to federal regulations so that you can focus on growing your business

Are you prepared for a DOL Investigation?

When it comes to Federal Contracting, Onsi’s Team of subject matter experts specialize in navigating and interpreting the complex provisions of the Service Contract Act (SCA), Davis-Bacon Act (DBA), Davis-Bacon Related Acts (DBRA), and the Fair Labor Standards Act (FLSA). Compliance violations can derail your business and/or limit your eligibility to compete for new contract opportunities.

Onsi Group can help your company:

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Compliance violations may result in SEVERE penalties

You could incur financial liabilities such as backpay, penalties, interest, and possible liquidated damages in an amount equal to any backpay owed!

Your contract could be terminated and/or payments withheld, including cross withholding from other federal contracts!

You could face debarment from future contracts for both the company and management team member(s) for up to 3 years!

Service Contract Act (SCA) Compliance Auditing

Are you certain your government contracts are in compliance with the Service Contract Act (SCA)?

Do you have SCA labor categories that you are not sure are correctly classified?

Misclassification is the number one violation cited in a Department of Labor investigation!

When Onsi Group audits your contracts we will:

Once completed, Onsi Group will provide insights into the management of your company’s prevailing wage contracts and guidance to improve profitability, fringe benefit administration, and future competitiveness

Davis-Bacon Act (DBA) Compliance Auditing

Davis-Bacon Act (DBA) and Davis-Bacon Related Acts (DBRA) often come under a DOL investigation due to misclassification and conformance process mistakes. Accurate and current wage rates are the cornerstone of the DBA’s protections, they provide the framework around which prevailing wage requirements protect contractors, employees, and local economies.

Similar to our SCA audit process, Onsi Group will conduct a comprehensive compliance examination of your records, working in tandem with your team to ensure your DBA/DBRA workforce employees are classified, and compensated correctly. Once the audit is complete, Onsi Group will provide findings and recommendations such as: 

  • How to correct positions improperly classified 
  • Identify fringe benefit deficiencies or overpayments 
  • How to improve contract profitability as it relates to fringe benefit administration 
  • How to increase contract competitiveness 
  • And so much more!

FLSA Compliance Auditing

Onsi Group’s FLSA Compliance audits include a comprehensive review and analysis of employee wages, exemptions, duties, and responsibilities. We conduct a review of your company employment policies, procedures, practices, and documentation to ensure that they follow the FLSA and its regulations. This includes minimum wage requirements, overtime pay, recordkeeping and, if applicable, child labor standards.

Onsi Group can help your organization ensure that your business is in line with all FLSA rules. Employers are encouraged to participate in regular internal FLSA audits to ensure compliance. Once complete, Onsi Group will provide a comprehensive compliance status analysis and recommendations regarding any requirements or regulations that your company’s practices may not currently meet.

Our company's growth, in part, is secure due to Onsi's direct involvement. Our future expansion has been driven, also in part, by Onsi's ability to help position us in a changing market place.

MICHAEL P.
SDV INTERNATIONAL

Compliance Auditing FAQs

Yes. An employer should make changes to its pay practices whenever non-compliant areas are discovered. Additionally, the employer is highly encouraged to make retroactive restitution for the time employees were paid in violation. Failure to do so may result in potential back wages and/or debarment proceedings brought against the employer by the Department of Labor (DOL). The typical investigation period for a DOL investigation is 2 years.

29 CFR 541.100; 29 CFR 541.200; 29 CFR 541.300; 29 CFR 541.400

No. An employer cannot simply promote an employee, pay him/her on a salary and call him/her exempt, thereby relieving the company from the requirements of the SCA/DBA. For an employee to be considered an exempt employee and therefore not subject to the SCA/DBA’s compensation requirements, the employee must meet the requirements of 29 CFR Part 541, which defines and delimits the exemptions for executive, administrative, professional, computer and outside sales employees.

No. An employer is only bound by a Wage Determination after the Contracting Officer has incorporated it, officially, as part of the contract. Typically, the Wage Determination incorporated at the time of award or extension remains in effect for the entire period of performance, regardless of whether a new revision is issued by DOL in the middle of the period*.

*Only if an applicable wage determination itself, requires that the hourly wage rate be increased during the period of the contract, will a rate increase be required.

29 CFR 4.169 Wage payments – work subject to different rates

No. “If an employee during a workweek works in different capacities in the performance of the contract and two (2) or more rates of compensation are applicable to the work which he or she performs, the employee must be paid the highest of such rates for all hours worked in the workweek unless it appears from the employer’s records […] which […] hours were […] spent in each class of work.”

29 CFR 4.175(a)

For SCA:

Odd-numbered Wage Determinations (e.g. 2005-2531) – Unless otherwise specified in the applicabe Wage Determination (WD), health and welfare payments are due for all hours paid for, including paid vacation, sick leave, and holiday hours, up to a maximum of 40 hours per week and 2,080 hours per year on each contract.

Even-numbered Wage Determinations (e.g. 2005-2531) – Unless otherwise specificed on the applicable Wage Determination (WD), health and welfare payments are due for all hours workedincluding overtime hoursbut not including paid leave hours such as holiday, vacation or sick leave.

For DBA:

Unless, otherwise specified in the applicable Wage Determination (WD) or Collective Bargaining Agreement (CBA), fringe benefit payments are due for all hours workedincluding overtime hoursbut not including paid leave hours such as holiday, vacation or sick leave.