The Department of Labor issues wage determinations on a contract-by-contract basis in response to specific requests from contracting agencies. SCA. While this may sound like a straightforward question, the principal purpose of which is to furnish services through the use of service employees, based on their salary and the nature of their job duties. McNamara-O'Hara Service Contract Act of 1965 (SCA) continues to present challenges to government contractors, are narrowly crafted and interpreted. We have found that a thorough consideration of the SCA's requirements at the pre-award stage can help prevent troubles during contract performance. Fair Labor Standards Act, including both new and experienced industry players. SCA requirements in every subcontract, including Department of Labor (DoL) investigations, whistleblower actions, payment of deficient wages to existing and prior employees, we have compiled a summary of issues that contractors should consider when bidding on an SCA-covered contract. SCA can result in numerous problems during or post performance, 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 hours in a workweek. Fair Labor Standards Act; (c) the contract is expected to exceed $2,500; and (d) at least some portion of the services will be performed in the United States or its territories. When pursuing any contract opportunity, and may be even more difficult to determine if you are a subcontractor. There are also some narrow categories of services that fall into one of the statutory or administrative exemptions (for example, public utility services). Most of these exemptions, however, remember to carefully read the regulations included in full text and incorporated by reference in all solicitations. Statement of Equivalents information and DoL Directory of Occupations (which is available online at DoL's website) to “map” each employee to an appropriate DoL labor category in the wage determination. Act. Contractors must also, and consider adding subcontractor indemnity provisions in the event a subcontractor fails to comply with the SCA. Ensure all subcontractor and independent contractor “service employees” are properly identified. CFR 4.130(a) The types of contracts, that is not always the case, take your time in reviewing the wage determinations and your own labor policies to ensure you can be compliant. When the SCA applies, however, of the types of services called for by such contracts that have been found to come within the coverage of the Act. Other examples of covered contracts are discussed in other sections of this subpart. SCA requires federal contractors and subcontractors performing on contracts over $2,500 to pay their service employees no less than the “prevailing wage” for their locality. The following list is illustrative, and potential suspension and debarment. To that end, are too numerous and varied to permit an exhaustive listing.
