|
An employer with a contract entered into by the United States, or the
District of Columbia, the principal purpose of which is to furnish services
through the use of service employees, is covered under the McNamara-O’Hara
Service Contract Act (SCA). This includes employers who operate work centers.
All contracts in excess of $2,500, or for an indefinite amount, require a wage
determination specifying the prevailing wages and fringe benefits that must be
paid to various classes of service employees, including those with
disabilities, who perform the contracted work. Service employees performing on
SCA contracts that are $2500 or less must receive at least the
federal minimum wage.
The SCA, like the FLSA, allows an employer to pay service
employees who have disabilities for the work to be performed an SMW less than
the prevailing wage required by the wage determination. Regulations 29 CFR Part
4.6(o) instructs the contractor to follow the same “conditions and
procedures” required for the employment of workers with disabilities under
FLSA Section 14(c). However, this exception is from the prevailing wage only.
Contractors are still required to pay the full fringe benefits, or the
equivalent dollar cash payment in lieu of providing the benefits, to service
employees who have disabilities for the work performed.
It is important to note that Section 6(e) of the FLSA
requires an employer who is either a prime contractor or a subcontractor on an
SCA contract to pay all employees working at the establishment where the SCA
work is performed, including staff and employees not working on the service
contract, at least the FLSA minimum wage. Employers who have obtained the
proper certification under FLSA Section 14(c) may pay an SMW to SCA service
employees and other employees not working on the contract who have disabilities
for the work being performed.
For general information about determining SMWs under the
SCA, read Fact Sheet No.
39F, The Payment of SMWs to Workers with Disabilities Who Are
Employed on Federal Service Contracts Subject to the SCA.
I would like to:
FLSA Section 14(c) Advisor |
Wage and Hour Division
|
