Service Contract Act Basics
The Service Contract Act (SCA), formally known as the McNamara-O’Hara Service Contract Act of 1965, is a U.S. labor law that applies to federal service contracts. The SCA ensures that service employees working on federal contracts are paid fair wages and benefits. This includes contracts for services such as janitorial work, maintenance, security, and food services. Its primary mode of operation is through the use of Wage Determinations for workers working contract covered by the Service Contract Act. The Department of Labor issues wage determinations that specify the minimum wages and fringe benefits that must be paid to employees based on the prevailing rates in the locality. The SCA applies to service contracts over $2,500. For contracts under this amount, the federal minimum wage applies. Contractors must comply with wage and safety standards, and they are required to maintain certain records. Violations can result in penalties, including withholding contract funds and debarment from future Government contracts.
Service Contract Act & Wage Determination Training
A Wage Determination under the Service Contract Act (SCA) is an official document issued by the U.S. Department of Labor. It specifies the minimum wages and fringe benefits that must be paid to service employees working on federal contracts. To ensure that employees on federal service contracts are paid wages and benefits that are comparable to those prevailing in the locality. Wage determinations include hourly wage rates and fringe benefits such as health insurance, retirement plans, and paid leave. They apply to federal service contracts exceeding $2,500 and must be included in the contract documents. There are two main types of wage determinations:
- Prevailing in the locality wage determinations: These are based on wage data for specific geographic areas and occupations.
- Section 4(c) wage determinations: These are based on collective bargaining agreements from predecessor contractors.
Join a Training on the Service Contract Act – Recorded, Live, or Customized!
PCI has recorded a training on the service contract act – if you would like to view the recording and learn more about the Service Contract Act, view the recording by clicking here. Alternatively, we are offering a live service contract act & wage determination training soon – learn more here. PCI offer customized training on the Service Contract Act and Wage Determinations as well – email [email protected] for more information!
Service Contract Act Training
