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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:
Accurately classify employees according to the Department of Labor’s Directory of Occupation and/or Local Area Practice
Complete and submit conformance request documentation
Determine whether to use the accrual or vesting method for vacation entitlements
Verify employee holiday, sick, and vacation entitlements based on applicable wage determination and/or collective bargaining agreement
Verify usage of health and welfare/fringe benefit dollars per covered employee
Gain a competitive advantage
Avoiding bona fide fringe benefit funding deficiencies
Assess and prevent fringe benefit cost overruns
Provide bid support for prevailing wage contract pursuits
Assist with forward pricing analysis
Increase contract profitability as it relates to fringe benefits administration
Facilitate price adjustments
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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:
• Review your SCA employee occupational classifications
• Work with your team to provide a complete understanding of the Health & Welfare liability for your SCA covered contract(s)
• Conduct a full compliance analysis for prevailing wages, vacation, holiday, sick, bona fide fringe benefits, "cash in-lieu-of", underpayments, overpayments, and more
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.
Talk to an ExpertGet in touch with a representative.
Davis-Bacon Act (DBA) Compliance Auditing
Attendees learn the day-to-day application for ensuring compliance when managing government funded projects. Failure to perform any of the prevailing wage requirements can lead to serious consequences, including but not limited to back wage/fringe claims, fines, criminal charges, and debarment.
The target audience for these courses include:
• 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!
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.
Talk to an expertGet in touch with a representative.
Fair Labor Standards Act (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.
Get in touch with a representative.
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 marketplace.
Compliance Auditing FAQs
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If an employer has incorrectly classified an SCA employee as exempt, can he/she make changes to the employee's pay in order to come into compliance with the SCA?
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.
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Can an employer "promote" an employee to a salary exempt position in order to avoid paying Prevailing Wages and Health and Welfare?
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. -
DOL issued a new Wage Determination in the middle of my performance year, do I have to pay the new rates?
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. -
Can I create a "blended hourly rate" to pay employees who work in two (2) or more different classifications?
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.” -
What hour types are subject to the health and welfar / fringe benefit rates?
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 worked, including overtime hours, but 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 worked, including overtime hours, but not including paid leave hours such as holiday, vacation or sick leave.