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November 5, 2004    DOL Home > ESA > WHD > Government Contracts > SCA   

Compliance Assistance —
McNamara-O'Hara Service Contract Act (SCA)

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Synopsis of Law

The Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. The Department of Labor issues wage determinations on a contract-by-contract basis in response to specific requests from contracting agencies. These determinations are incorporated into the contract.

For contracts equal to or less than $2,500, contractors are required to pay the federal minimum wage of $5.15 an hour (as of September 1, 1997) as provided in Section 6(a)(1) of the Fair Labor Standards Act. Contractors must also, under the provisions of the Contract Work Hours and Safety Standards Act and the Fair Labor Standards Act, pay employees at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek.

Compliance Assistance Materials

Workplace Poster    Memo    FAQ    Guides    Fact Sheet

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Workplace Posters 
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Memo
  • Memo 196
    A Memo From the Administrator to All Contracting Agencies of the Federal Government and Contracting Agencies of the District of Columbia on Service Contract Act Health and Welfare Fringe Benefit Changes
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FAQ
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Guides   
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Fact Sheet

 



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