U.S. DEPARTMENT OF LABOR
EMPLOYMENT STANDARDS ADMINISTRATION
Wage and Hour Division
WASHINGTON, D.C. 20210
November 30, 1976
MEMORANDUM NO. 127
TO: All Government Contracting Agencies of the
Federal Government and the District of Columbia
SUBJECT: Service Contract Act Amendments of 1976
(PL 94-489)
The President has signed amendments to the Service Contract
Act, effective on October 13, 1976.
These amendments were enacted for the purpose of clarifying
Congressional intent that the term "service employee" as
defined in section 8(b) of the Act encompasses all persons
engaged in the performance of a contract entered into by the
United States, the principal purpose of which is the fur-
nishing of services, other than those individuals employed
in a bona fide executive, administrative, or professional
capacity as those terms are defined and delimited in
Title 29, Code of Federal Regulations, Part 541. Thus,
Congress has made it clear that both so-called "white collar"
and "blue collar" workers are subject to the Act and that
Federal service contracts utilizing white collar workers
(such as clerical, computer, technical, and most engineering
contracts) are subject to the Act.
The other major amendment requires the Department of Labor
to give "due consideration" to Federal "white collar" (GS)
wage rates and fringe benefits in issuing prevailing wage
determinations under the Act. Additional instructions
affecting the preparation and submission of SF-98s (Notice
of Intention to Make a Service Contract) will be issued
shortly.
A copy of the amendments is attached.
Ray J. Dolan
Assistant Administrator





















GRAPHIC “PUBLIC LAW 94-489-OCT. 13, 1976”