Health and welfare fringe

Definition

The hourly benefit a federal janitorial contract sets, paid in full to the worker when the plan costs less.

Why It Matters

The federal service contract rules name custodial and janitorial work among the contracts they cover, and the wage determination on one usually fixes a health and welfare payment per hour. It is due on every hour paid, holidays and vacation included, up to forty a week and 2,080 a year. A plan bought for less than the rate does not keep the difference, because the contractor must make it up to the worker in cash or equivalent benefits. A part-time worker the plan excludes is owed the same equivalent. So this line is the crew's money passing through the contract price, and none of it is margin. A violation ordinarily bars the firm from federal contracts for three years, along with any firm in which it has a substantial interest.