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Wage and Hour Division (WHD)

McNamara-O-Hara Service Contract Act (SCA)

Overview

The McNamara-O’Hara Service Contract 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 as provided in Section 6(a)(1) of the Fair Labor Standards Act.

For prime contracts in excess of $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards Act, as amended, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. The overtime provisions of the Fair Labor Standards Act may also apply to SCA-covered contracts.

Key News

  • The Issuance of the 2013 Service Contract Act Health and Welfare rate update will occur in mid-June this year. Calculation of this rate is based upon the Bureau of Labor Statistics (BLS) Employment Cost Index (ECI). The Wage and Hour Division will use BLS’s quarterly data that is published in mid-June. The e98 web page will be temporarily unavailable for a week during the update process. For information on policies, wage rates and/or benefits, please call (202) 693-0073 or email WHD-WDS-PolicySupport@dol.gov. (June 3, 2013)
  • The Wage and Hour Division has issued a Final Rule; notice of effective date and OMB approval of information to announce the effective date of its final rule published on August 29, 2011, to implement Executive Order 13495, Nondisplacement of Qualified Workers Under Service Contracts. The effective date is January 18, 2013. For more information, please visit the Nondisplacement Final Rule Webpage. (December 21, 2012)

Guidance

Posters

Fact Sheets

Forms

  • Standard Form (SF) 1444 — Request for Authorization of Additional Classification and Wage Rate

Applicable Laws and Regulations

E-Tools

Davis-Bacon Act and Service Contract Act Online Training For Government Contracting Officials

The Wage and Hour Division (WHD) is pleased to announce that online training is now available to assist all federal, state and local contracting agencies with information on federal rules concerning prevailing wages and other labor law requirements. The training modules, presented by WHD staff and its federal agency partners, provide contracting officials with information on the process of obtaining wage determinations; adding classifications to wage determinations (conformances); compliance principles, and enforcement process under both the Davis-Bacon Act (DBA) and the McNamara Service Contract Act (SCA).

Specifically, two training modules are currently being offered on line. A four hour session for the DBA and a second four hour session on the SCA. These training modules and accompanying power points presentations are available in their entirety at the following links:

  • Wage Determination Online Website Link
    This website provides a single location for federal contracting officers to use in obtaining appropriate Service Contract Act (SCA) and Davis-Bacon Act (DBA) wage determinations (WDs) for each official contract action. The website is available to the general public as well. Guidance in selecting WDs from this website is provided in the WDOL.gov User’s Guide.

 

 

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