Difference between revisions of "Service Contract Act of 1965"
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==Introduction== | ==Introduction== | ||
| − | The Service Contract Act (also referred as the McNamara-O'Hara Service Contract Act) protects worker's on federal contracts when the contract's principal purpose is to provide services in the United States using service employees. Minimum wages and fringe benefits must be based on rates that the Secretary of Labor determines as prevailing for service employees.<ref>codified at 41 U.S.C. §§ 6701–6707</ref> | + | The Service Contract Act (also referred as the McNamara-O'Hara Service Contract Act) protects worker's on federal contracts when the contract's principal purpose is to provide services in the United States using '''service employees'''. Minimum wages and fringe benefits must be based on rates that the Secretary of Labor determines as prevailing for service employees.<ref>codified at 41 U.S.C. §§ 6701–6707</ref> |
| + | ==Definitions== | ||
| + | |||
| + | A “service employee” is an employee, excluding an executive, administrative, or exempt professional employee under 29 CFR Part 541, who is actively working in performance of a service pursuant to contract covered by the SCA. | ||
| + | |||
| + | ==Regulatory Responsibility== | ||
| + | |||
| + | The Secretary of Labor is tasked with enforcing the provision of the SCA by issuing regulations, orders, conducting hearings, deciding disputes and taking other action as appropriate. Wage determinations are specific to each contract. The Department of Labor has made many regulations implementing the SCA into practice. These regulations involve various matters from procedure to compensation and safety standards, all of which can be found in various parts of Title 29 of the Code of Federal Regulations. | ||
| + | |||
| + | As the requirement to be in compliance with the SCA are very detailed, the Secretary of Labor, through the Wage and Hour Division of the Employment Standards Administration, provides assistance to contractors to learn and navigate the SCA. This assistance consists of publishing brochures and other explanatory literature, copies of which may be found at local Wage and Hour Division offices. The Wage and Hour Division also provides much information on its website. There is also the Wage and Hour Division helpline which is reached toll free by dialing 1-866-4USWAGE. | ||
| + | |||
| + | The Department of Labor may request reports on the costs of employee pay and benefit per contract so the contractor should keep meticulous records tracking this information to that it is readily produced when requested. | ||
| + | |||
| + | ==Requirements== | ||
| + | |||
| + | For prime contracts exceeding $2,500, contractors and subcontractors performing work are required to pay their employees at least at the wage rate and with the benefits of private employers in the locality at which the work is being performed. If there was a prior contactor with a collective bargaining agreement, the new contractor must pay the rates set forth in that agreement. | ||
Revision as of 18:21, 7 December 2022
Contents |
Introduction
The Service Contract Act (also referred as the McNamara-O'Hara Service Contract Act) protects worker's on federal contracts when the contract's principal purpose is to provide services in the United States using service employees. Minimum wages and fringe benefits must be based on rates that the Secretary of Labor determines as prevailing for service employees.[1]
Definitions
A “service employee” is an employee, excluding an executive, administrative, or exempt professional employee under 29 CFR Part 541, who is actively working in performance of a service pursuant to contract covered by the SCA.
Regulatory Responsibility
The Secretary of Labor is tasked with enforcing the provision of the SCA by issuing regulations, orders, conducting hearings, deciding disputes and taking other action as appropriate. Wage determinations are specific to each contract. The Department of Labor has made many regulations implementing the SCA into practice. These regulations involve various matters from procedure to compensation and safety standards, all of which can be found in various parts of Title 29 of the Code of Federal Regulations.
As the requirement to be in compliance with the SCA are very detailed, the Secretary of Labor, through the Wage and Hour Division of the Employment Standards Administration, provides assistance to contractors to learn and navigate the SCA. This assistance consists of publishing brochures and other explanatory literature, copies of which may be found at local Wage and Hour Division offices. The Wage and Hour Division also provides much information on its website. There is also the Wage and Hour Division helpline which is reached toll free by dialing 1-866-4USWAGE.
The Department of Labor may request reports on the costs of employee pay and benefit per contract so the contractor should keep meticulous records tracking this information to that it is readily produced when requested.
Requirements
For prime contracts exceeding $2,500, contractors and subcontractors performing work are required to pay their employees at least at the wage rate and with the benefits of private employers in the locality at which the work is being performed. If there was a prior contactor with a collective bargaining agreement, the new contractor must pay the rates set forth in that agreement.
References
- ↑ codified at 41 U.S.C. §§ 6701–6707
