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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter I  

Office of the Secretary of Labor

 

 

Part 4  

Labor Standards for Federal Service Contracts

 

 

 

Subpart C  

Application of the McNamara-O'Hara Service Contract Act


29 CFR 4.105 - The Act as amended.

  • Section Number: 4.105
  • Section Name: The Act as amended.

    (a) The provisions of the Act (see Secs. 4.102-4.103) were amended, 
effective October 9, 1972, by Public Law 92-473, signed into law by the 
President on that date. By virtue of amendments made to paragraphs (1) 
and (2) of section 2(a) and the addition to section 4 of a new 
subsection (c), the compensation standards of the Act (see Secs. 4.159-
4.179) were revised to impose on successor contractors certain 
requirements (see Sec. 4.1b) with respect to payment of wage rates and 
fringe benefits based on those agreed upon for substantially the same 
services in the same locality in collective bargaining agreements 
entered into by their predecessor contractors (unless such agreed 
compensation is substantially at variance with that locally prevailing 
or the agreement was not negotiated at arm's length). The Secretary of 
Labor is to give effect to the provisions of such collective bargaining 
agreements in his wage determinations under section 2 of the Act. A new 
paragraph (5) added to section 2(a) of the Act requires a statement in 
the government service contract of the rates that would be paid by the 
contracting agency in the event of its direct employment of those 
classes of service employees to be employed on the contract work who, if 
directly employed by the agency, would receive wages determined as 
provided in 5 U.S.C. 5341. The Secretary of Labor is directed to give 
due consideration to such rates in determining prevailing monetary wages 
and fringe benefits under the Act's provisions. Other provisions of the 
1972 amendments include the addition of a new section 10 to the Act to 
insure that wage determinations are issued by the Secretary for 
substantially all service contracts subject to section 2(a) of the Act 
at the earliest administratively feasible time; an amendment to section 
4(b) of the Act to provide, in addition to the conditions previously 
specified for issuance of administrative limitations, variations, 
tolerances, and exemptions (see Sec. 4.123), that administrative action 
in this regard shall be taken only in special circumstances where the 
Secretary determines that it is in accord with the remedial purpose of 
the Act to protect prevailing labor standards; and a new subsection (d) 
added to section 4 of the Act providing for the award of service 
contracts for terms not more than 5 years with provision for periodic 
adjustment of minimum wage rates and fringe benefits payable thereunder 
by the issuance of wage determinations by
the Secretary of Labor during the term of the contract. A further 
amendment to section 5(a) of the Act requires the names of contractors 
found to have violated the Act to be submitted for the debarment list 
(see Sec. 4.188) not later than 90 days after the hearing examiner's 
finding of violation unless the Secretary recommends relief, and 
provides that such recommendations shall be made only because of unusual 
circumstances.
    (b) The provisions of the Act were amended by Public Law 93-57, 87 
Stat. 140, effective July 6, 1973, to extend the Act's coverage to 
Canton Island.
    (c) The provisions of the Act were amended by Public Law 94-489, 90 
Stat. 2358, approved October 13, 1976, to extend the Act's coverage to 
white collar workers. Accordingly, the minimum wage protection of the 
Act now extends to all workers, both blue collar and white collar, other 
than persons employed in a bona fide executive, administrative, or 
professional capacity as those terms are used in the Fair Labor 
Standards Act and in part 541 of title 29. Public Law 94-489 
accomplished this change by adding to section 2(a)(5) of the Act a 
reference to 5 U.S.C. 5332, which deals with white collar workers, and 
by amending the definition of service contract employee in section 8(b) 
of the Act.
    (d) Included in this part 4 and in parts 6 and 8 of this subtitle 
are provisions to give effect to the amendments mentioned in this 
section.
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