EP 1180-1-1
1 Aug 01
(1) Part-time employees are entitled to fringe benefits unless specifically excluded by the WD.
Therefore, the contractor is allowed to claim appropriate adjustments for these employees as well as full-
time employees. The amount of holiday and vacation adjustment is prorated on their normal schedule of
hours worked.
Example: An employee who regularly works 17 hours per week on the contract
would receive 17/40ths of the full-time benefit for a holiday or vacation. If the
revised WD authorized an additional holiday, the contractor would be entitled to
an adjustment for that employee equal to the WD wage rate multiplied by 8 hours
multiplied by 17/40ths.
(2) Part-time employees working on an irregular schedule are entitled to holiday pay based on the
number of hours worked in the workweek preceding the holiday. Vacation for irregularly scheduled
employees is based on the number of hours worked in the year preceding their anniversary date.
g. Overtime. Some cost increases associated with overtime hours are reimbursable and some are
not. Generally, overtime hours are paid at a premium rate of time and one-half or double time. The
straight time portion of WD or FLSA wage increases are properly reimbursable under a price adjustment
claim, but the premium portion of such wages are not. The contractor has the ability to manage his work
force so that overtime hours do not occur by rescheduling of employees and/or hiring additional workers.
Therefore, the overtime premium payments are viewed as within the contractor's control. An exception
may be considered in the rare instance that the overtime hours were actually required and/or authorized
by the contract.
Example: The contractor's employees work a total of 12,000 hours in a given labor
Category of which 1,000 hours were considered overtime and paid at time and one-half
the regular rate of pay. The WD increased the wage rate for that classification by $.30
per hour. The contractor would be entitled to a price adjust ment of ,600 ($.30 x 12,000),
but would not be entitled to the additional premium of 0 ($.30 x .5 x 1,000) that
occurred due to 1,000 of the hours being overtime.
9-8. Wage Determinations Based on Collective Bargaining Agreements (CBAs). The wage rates and
monetary fringe benefits in an incumbent contractor's CBA, provided to the contract agency in a timely
manner (FAR 22.1012), will become applicable as SCA minimum compensation for the following
9-9
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