Department of Labor Memorandum Number 250 (Amendment 3).pdf

This document is an All Agency Memorandum from the U.S. Department of Labor's Wage and Hour Division, dated July 7, 2025, addressing the 2025 Service Contract Act (SCA) Health and Welfare Fringe Benefit rates. The memorandum establishes a new health and welfare fringe benefit rate of $5.55 per hour, which applies to federal government contractors under the McNamara-O'Hara Service Contract Act, effective July 7, 2025.

The memorandum also details requirements under Executive Order 13706 for paid sick leave, specifying that certain employers with federal government contracts must provide up to 56 hours of paid sick leave annually. For contracts subject to EO 13706, the SCA health and welfare fringe benefits rate will be $5.09 per hour for employees performing work on covered contracts. Additionally, the document provides specific guidance for health and welfare fringe benefit rates in Hawaii, noting different rates for employers providing health care benefits under the Hawaii Prepaid Health Care Act (HPHCA), with rates ranging from $2.42 to $96.80 per week depending on the specific contractual and healthcare benefit circumstances.