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Can a exempt employee, work on an SCA -covered contract (in a WD labor category)? and what are the implications of them doing so ?

Isn't it less complicated (cleaner) from an accounting standpoint if non-exempt workers/employees work on SCA covered contracts in the the appropriate WD labor categories ? (in other words, having company classifed non-exempt hourly workers only charge to the WD labor categories?)

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"Can an exempt employee, work on an SCA -covered contract (in a WD labor category)?""

Yes

"and what are the implications of them doing so ?"

It depends.

See 29 CFR Part 541 for info on the exemptions. http://www.dol.gov/w...regulations.pdf

And although I find the reasoning provided in the case linked below does not seem to provide for the conclusion that was reached, you can look to this case to see that GAO's position in 1975 was that sole proprietors can perform work under WD labor categories and not pay themselves the minimum wages:

http://www.gao.gov/a.../400/394356.pdf

I don't follow the questions in your 2nd paragraph.

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Guest Vern Edwards
Can a exempt employee, work on an SCA -covered contract (in a WD labor category)? and what are the implications of them doing so ?

Yes. However, I believe that coverage depends on the work the person is doing. If they are doing the work of a service employee, and not an exempt employee, then they are covered by the Act during the time they are doing that work. I do not know the implications, because I don't know the facts of your situation, e.g., what the ordinarily exempt employee earns, etc. (And I don't want to know.)

Isn't it less complicated (cleaner) from an accounting standpoint if non-exempt workers/employees work on SCA covered contracts in the the appropriate WD labor categories ? (in other words, having company classifed non-exempt hourly workers only charge to the WD labor categories?)

Accounting convenience is not what counts. The law and its implementing regulations are what counts.

This is something you can look up for your self. It's not all that complicated. Read 29 CFR Part 4.

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