Federal Contractors · One Question

Predecessor service can count toward vacation.

Under the Service Contract Act, vacation eligibility generally requires one year of continuous service, and that service can include time with a predecessor contractor at the same facility.

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The Detail

The short answer, then the detail.

How it works

  • Absences for sickness, injury or other reasons beyond the employee’s control are not a break in service.
  • Quitting, firing for cause or termination other than temporary layoff is a break, even if the employee is rehired.

What to watch

  • Vacation vests on the anniversary date but must be given or paid before the next anniversary, the end of the contract, or termination.
  • The contractor employing the worker on the vesting date provides the full benefit.
  • Holiday eligibility generally cannot be denied for short tenure.

What CFH does

  • Maps plan and leave transitions before the award, not after the first payroll.
  • Lines up eligibility waiting periods with predecessor service.

General information, not legal advice. Your wage determination and contract clauses govern, and contracts counsel decides how they apply to you. We bring counsel in.

Let’s Get to Work

Send us your renewal.

We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.

What to send

The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier

Four documents, two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.

CFH Insurance Consultants

An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.

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