Payroll FAQs

If an employee was employed by the predecessor contractor and hired by the successor, does the vacation time earned with the predecessor contractor continue, stop, or does the employee start accruing new vacation time with the new contractor?

The vacation time continues, as long as there is no break in service. The contractor by whom a worker is employed at the time the vacation right vests (i.e. on the employee’s anniversary date of employment) must provide the full benefit required by the wage determination which is applicable on that date, whether or not it is the predecessor or the successor contractor. This is described in Title 29, Part 4 of the Code of Federal Regulations, Section 4.173.


October 2018

Tags: Fringe Benefits: Vacation, Holidays, and Health & Welfare