How is COMPA meeting the contracted Wage Determination which stipulates of $3.24 for Health & Welfare by only offering $2.72 per employee if an employee opts out of Medical Benefits?
Under the guidelines of the US DOL Wage and Hour Division, COMPA exercised its right to meet its the Health & Welfare Wage Determination obligation via a combination of Bona Fide Fringe Benefits and predetermined cash payments in a published systematic method. According to the guidelines, COMPA is allowed the discretion of determining the exact dollar amount of the payout as long as the total payout in combination with paid out Bona Fide Fringe Benefits equals the total amount required by the Wage Determination. The determined cash payments are to be paid out per hour of compensation up to 40 Hours per payroll period. The Bona Fide Fringe Benefits are paid out over time, but not less than quarterly. COMPA will contribute these Bona Fide Fringe Benefit amounts to third party administrators per BI-Weekly payroll and reconciled with actual amounts due, quarterly. It should be noted that COMPA developed the COMPA LANS VMS Health & Welfare Compensation Program in accordance with the Service
