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DOL Provides Guidance Regarding FFCRA and SCA/DBRA Interaction

On August 3, 2020, the U.S. Department of Labor’s Wage and Hour Division published two FAQs for employers that have a service contract with the federal government covered by the Service Contract Act (“SCA”) or a federal construction contract covered by the Davis-Bacon and related Acts (“DBRA”). The FAQs help explain when fringe benefits must be provided to employees taking paid leave under the Families First Coronavirus Response Act (“FFCRA”).

According to the FAQs from the DOL, the health and welfare rate (i.e., the monetary equivalent of health and welfare benefits) under SCA and DBRA is not included in the regular rate of pay for purposes of FFCRA.

The guidance establishes that fringe benefits would NOT need to be paid unless the employee is taking FFCRA leave concurrently with leave provided under SCA/DBRA or Executive Order 13706 (EO 13706). Specifically, if the employee is using existing paid vacation, sick leave, holiday hours or sick leave dictated by EO 13706 concurrently with FFCRA leave, then a health and welfare fringe payment would be required.

The DOL guidance is available at

Cosmo Insurance Agency is a full-service independent insurance agency based in Hackensack (Bergen County) and Lakewood (Ocean County), New Jersey that offers an all-encompassing range of insurance options for both individuals and businesses. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating our knowledge of the insurance guidelines for healthcare, employee benefits, life insurance, self-insurance, dental, disability, and long term care insurance, we keep our clients up-to-date with affordable plans that cover all their specific insurance needs.


Source: Emerson Reid