Fair Labor Standards Act and Service Contract Act-Price Adjustment (Multiple Year and Option Contracts Sample Clauses

Fair Labor Standards Act and Service Contract Act-Price Adjustment (Multiple Year and Option Contracts. (FAR 52.222-43, May 2014): 1. This clause applies to both Subcontracts subject to area prevailing wage determinations and Subcontracts subject to collective bargaining agreements. 2. The Subcontractor warrants that the prices in this Subcontract do not include any allowance for any contingency to cover increased costs for which adjustment is provided under this clause. 3. The wage determination, issued under the Service Contract Act of 1965, as amended, (41 U.S.C. 351, et seq.), by the Administrator, Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, current on the anniversary date of a multiple year Subcontract or the beginning of each renewal option period, shall apply to this Subcontract. If no such determination has been made applicable to this Subcontract, then the Federal minimum wage as established by section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended, (29 U.S.C. 206) current on the anniversary date of a multiple year Subcontract or the beginning of each renewal option period, shall apply to this Subcontract. 4. The Subcontract price, Subcontract unit price labor rates, or fixed hourly labor rates will be adjusted to reflect the Subcontractor’s actual increase or decrease in applicable wages and fringe benefits to the extent that the increase is made to comply with or the decrease is voluntarily made by the Subcontractor as a result of: a. The Department of Labor wage determination applicable on the anniversary date of the multiple year Subcontract, or at the beginning of the renewal option period. For example, the prior year wage determination required a minimum wage rate of $4.00 per hour. The SUBCONTRACTOR chose to pay $4.10. The new wage determination increases the minimum rate to $4.50 per hour. Even if the SUBCONTRACTOR voluntarily increases the rate to $4.75 per hour, the allowable price adjustment is $.40 per hour; b. An increased or decreased wage determination otherwise applied to the Subcontract by operation of law; or c. An amendment to the Fair Labor Standards Act of 1938 that is enacted after award of this Subcontract, affects the minimum wage, and becomes applicable to this Subcontract under law. 5. Any adjustment will be limited to increases or decreases in wages and fringe benefits as described in paragraph (d) of this clause, and the accompanying increases or decreases in social security and unemployment taxes and workers' compensation insurance, but shall not otherwise include a...
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Related to Fair Labor Standards Act and Service Contract Act-Price Adjustment (Multiple Year and Option Contracts

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