Overview: The McNamara-O'Hara Service Contract Act (SCA) regulates federal contracts of more than more than $2,500 to furnish services to the federal government. Contractors and subcontractors working under the SCA must pay their workers at least the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area, as determined by the US Department of Labor (DOL).
Trends: An Executive Order requires that employees of most federal contractors be paid a minimum wage of $10.20 per hour. This wage will be adjusted for inflation on January 1, 2018.
Author: Michael Cardman, Legal Editor
Updated to reflect an increase in the minimum wage for workers on federal contracts covered by Executive Order 13658, effective January 1, 2017.
HR guidance on complying with the McNamara-O'Hara Service Contract Act (SCA).