EP 1180-1-1
1 Aug 01
c. Sick Leave, Jury Duty, or Bereavement Leave. If such leave is a CBA requirement, the
adjustment should be based upon the difference between the new requirement and the amount actually
paid in the prior contract period. Again, only the contractor's costs are to be considered when impacted
by any revised CBA provisions. Revisions which reduce the contractor's share (cost) for plan benefits
should be considered a reduction in SCA-required benefits and adjusted accordingly.
Example: The contractor's previous CBA calls for 5 sick days per year with an annual
`cash out' provision for any unused sick leave at the end of the year. The new agreement
changes the sick leave provisions to 10 sick days per year with no `cash out' provision,
but does permit employees to accumulate sick leave in the same manner as Federal civil
service employees. The contractor's claim for reimbursement of the difference between
5 days per year per employee and 10 days per year per employee is not appropriate for
reimbursement unless the contractor can reasonably demonstrate that all this sick leave
will actually be used and therefore the cost will be incurred.
d. Overtime. Many CBAs provide overtime compensation for hours worked in excess of a
standard schedule (i.e., time and one-half rates for hours worked over 8 hours per day, or double-time
pay for Sunday or holiday work). Such overtime provisions (premium payments) are not required by
SCA, nor are they considered fringe benefits under SCA. Any increases to such compensation
requirements would not be subject to adjustment under the Clause.
e. Retirement and Pension Plans, Health or Life Insurance. If such plans are a CBA requirement the
adjustment should be based upon the difference between the new requirement and the amount actually
paid in the prior contract period. Only the contractor's portion of the costs are to be considered when
these plans are affected by CBA provisions. Revisions which reduce the contractor's contribution to a
benefits plan should be considered a reduction in SCA-required benefits and adjusted accordingly.
f. Other Premium Payments. Payments made as a result of CBA provisions for work conditions or
rules are not enforceable under SCA, and therefore are not subject to adjustments under the Clause.
Examples: Show-up or Call-in payment. CBA requires an employee to be paid a
minimum of 4 hours wages if called to work on their regularly scheduled day off.
The employee may work only 1 hour, but is paid 4 hours. The three non-work
hours are not an SCA-required benefit, nor are they included in the hours adjusted
9-12
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