If you`re working as a consultant or a contractor, you might be wondering what the term “covered contract employee” means. This term is used to describe a specific category of workers who are employed by federal contractors.
Covered contract employees are individuals who work for a company that has a federal contract or sub-contract of more than $2,500. These employees are covered by the Service Contract Act (SCA) or the Davis-Bacon Act (DBA).
The SCA covers employees working on service contracts for the federal government, while the DBA covers workers on construction contracts. These acts provide various protections for workers, including minimum wage, overtime pay, and benefits.
Covered contract employees are required to receive the prevailing wage for their position, which is determined by the Department of Labor. This means that they must be paid the same rate as other workers in the area doing the same job. In addition, they are entitled to fringe benefits, such as health insurance, retirement plans, and paid time off.
It`s important to note that not all contractors are covered contract employees. Only those who work for companies with federal contracts that meet the threshold mentioned above fall under this category. If you`re unsure whether you`re a covered contract employee, you can check with your employer or consult the Department of Labor`s website.
In conclusion, a covered contract employee is a worker who is employed by a federal contractor and is covered by the Service Contract Act or the Davis-Bacon Act. These employees are entitled to minimum wage, overtime pay, and benefits, including the prevailing wage and fringe benefits. If you`re working as a contractor for a federal contractor, it`s important to understand your rights and protections under these acts.