Skip to page content
Wage and Hour Division
Bookmark and Share

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)

The Wage and Hour Division has issued a final rule to implement Executive Order 13495, Nondisplacement of Qualified Workers Under Service Contracts. This final rule will be effective once the Federal Acquisition Regulatory Council (FARC) issues regulations for the inclusion of the nondisplacement contract clause in covered Federal solicitations and contracts, as required by the Executive Order. For more information, please visit the Nondisplacement Final Rule Webpage. (August 29, 2011)

Caption
General Guidance

General Guidance

LEARN MORE

Fact Sheets

Fact Sheets

LEARN MORE

 E-Tools

E-tools

LEARN MORE

Posters

Posters

LEARN MORE

Forms

Forms

LEARN MORE

Interpretive Guidance

Interpretive Guidance

LEARN MORE

Laws & Regulations

Applicable Laws and Regulations

LEARN MORE

 

m"-->