EP 1180-1-1
1 Aug 01
c. The allowable hourly adjustment is the difference between the new hourly fringe benefit rate and
the hourly rate of the benefits actually provided by the contractor during the previous contract period.
d. Holidays. When the revised WD increases the number of required holidays, the contractor may
claim an adjustment for the increased cost. The adjustment is the SCA minimum wage rate for each
classification working on the contract, times the number of increased holiday hours (usually 8 hours per
specified new holiday). However, if in the preceding period, the contractor provided more holidays or
leave time than the revised WD required, an adjustment for the increase in SCA-required holidays is not
due.
e. Vacation. Area WDs usually list vacation benefits as a number of weeks earned per total years of
service. Total years of service include continuous employment on predecessor contracts. (Continuous
employment may include employment with more than one predecessor contractor if each performed
essentially the same services in the same location, with essentially no break in that service.) Unless the
WD states otherwise, vacation benefits become vested on the employee's anniversary date. The
anniversary date is the date of the month the employee was first employed on the contract. A vacation
adjustment is only applicable if the revised WD changes the original vacation benefit or entitlement
criteria. No adjustment is permitted merely because an individual employee's seniority has increased his
or her entitlement to an unchanged WD benefit.
Example: The original WD required one week vacation after one year of service,
two weeks vacation after three years, and three weeks vacation after five years.
The revised WD now changes the vacation requirement to: two weeks vacation
after one year, and three weeks vacation after five years (the three-year entitlement
was dropped and the five-year entitlement remains unchanged). An adjustment
equal to one week's pay at the new, revised WD wage rate may be claimed for each
employee who will reach their one-year or two-year anniversary date during the
next contract period. No adjustment is required for employees reaching their third
or greater anniversary date during the next contract period because there was no
change in their benefits or entitlement criteria.
f. Part-Time employees.
9-8
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