This blog goes back-to-basics explains the origin of and requirements to set up a so-called “Belo plan” for overtime compensation. Belo plans are a form of guaranteed overtime compensation. Failed Belo plans, which don’t meet the legal requirements, are still guaranteed fixed salaries for the scheduled hour paid, and thus may be eligible for half-time coefficient premium treatment.

On July 7, 2025, the U.S. Department of Labor (“DOL”) Wage and Hour Division (“WHD”) issued its annual All Agency Memorandum (“AAM”) that sets the health and welfare (“H&W”) fringe benefit rates for Service Contract Act (“SCA”) covered contracts. The update went into effect upon its issuance and has been incorporated into DOL Wage Determinations (“WDs”).

How often employers must run their payroll for federal government contract work is dependent on the contract terms and where you are performing the work. The requirement usually varies from weekly to monthly, but employers need to review both your contract and state and local wage laws and regulations. The answer is that “it depends.”