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An employer with a contract entered into by the United States, or the
District of Columbia, the principal purpose of which is to furnish services
through the use of service employees, is covered under the McNamara-O’Hara
Service Contract Act (SCA). This includes employers who operate work centers.
All contracts in excess of $2,500, or for an indefinite amount, require
a wage determination specifying the prevailing wages and fringe benefits that
must be paid to various classes of service employees, including those with
disabilities, who perform the contracted work. Service employees performing on
SCA contracts that are $2500 or less must receive at least the
federal minimum wage.
The SCA allows an employer to pay service employees who have
disabilities special minimum wages—wages less than the prevailing wage
required by the wage determination—in a manner similar to that authorized
by FLSA Section 14(c). However, contractors are still required to pay the
full fringe benefits, or the equivalent cash payment in lieu of
providing the benefits, to service employees with disabilities who perform the
contracted work.
All laborers, mechanics, guards, and watchmen—with or without
disabilities— performing as service employees on SCA contracts in excess
of $100,000 are also entitled to overtime pay under the Contract Work Hours
Safety Standards Act (CWHSSA).
Fact Sheet No.
39F, The Payment of Special Minimum Wages to Workers with
Disabilities Who Are Employed on Federal Service Contracts Subject to the
McNamara-O'Hara Service Contract Act, provides more general information
about the employment of workers with disabilities on contracts subject to the
SCA.
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FLSA Section 14(c) Advisor |
Wage and Hour Division
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