Service Contracts

Editor's Note: Employers that enter into service contracts with the federal government must pay their workers prevailing wages and fringe benefits.

Michael CardmanOverview: 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: President Obama has issued an Executive Order requiring that employees working under the Service Contract Act be paid a minimum wage of $10.10 per hour starting January 1, 2015.

Author: Michael Cardman, Legal Editor

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HR guidance on complying with the McNamara-O'Hara Service Contract Act (SCA).