Wage and Hour Division (WHD)
McNamara-O-Hara Service Contract Act (SCA)
Overview
The McNamara-O’Hara Service Contract Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. The Department of Labor issues wage determinations on a contract-by-contract basis in response to specific requests from contracting agencies. These determinations are incorporated into the contract.
For contracts equal to or less than $2,500, contractors are required to pay the federal minimum wage as provided in Section 6(a)(1) of the Fair Labor Standards Act.
For prime contracts in excess of $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards Act, as amended, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. The overtime provisions of the Fair Labor Standards Act may also apply to SCA-covered contracts.
Key News
The Wage and Hour Division has issued a final rule to implement Executive Order 13495, Nondisplacement of Qualified Workers Under Service Contracts. This final rule will be effective once the Federal Acquisition Regulatory Council (FARC) issues regulations for the inclusion of the nondisplacement contract clause in covered Federal solicitations and contracts, as required by the Executive Order. For more information, please visit the Nondisplacement Final Rule Webpage. (August 29, 2011)
General Guidance
- Frequently Asked Questions
- Conformances Under the Service Contract Act
- All Agencies Memorandum (AAMs)
- Cross-Index for Contract Labor Standards
- State Labor Laws
Guides
- Employment Law Guide – Prevailing Wages in Service Contracts (PDF)
- Department of Labor (DOL) Prevailing Wage Resource Book
- Service Contract Act - Conformance Guide (PDF)
- Service Contract Act Directory of Occupations, 4th Edition
- Service Contract Act Directory of Occupations, 5th Edition (PDF)
Fact Sheets
- Fact Sheet 39 The Payment of Special Minimum Wages to Workers with Disabilities Who Are Employed on Federal Service Contracts Subject to the McNamara-O'Hara Service Contract Act (PDF)
- Fact Sheet 17a Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (PDF)
- Fact Sheet 22 Hours Worked Under the Fair Labor Standards Act (PDF)
- Fact Sheet 23 Overtime Pay Requirements of the FLSA (PDF)
- Fact Sheet 44 Visits to Employers (PDF)
- Additional Fact Sheets
E-Tools
- Prevailing Wage Conference Videos
- Wage Determinations OnLine.gov
- Standard Form 98 Electronic Version “e98”
- Standard Form (SF) — 1444 Request for Authorization of Additional Classification and Wage Rate
- elaws Poster Advisor Poster requirements of several laws administered by the department of Labor
Workplace Posters
- Service Contract Act/Walsh-Healey Public Contracts Act
- Notice to Workers with Special Disabilities/Special Minimum Wage
- Other Workplace Posters
Forms:
- Standard Form (SF) 1444 Request for Authorization of Additional Classification and Wage Rate
Interpretive Guidance
- Field Operations Handbook
- Chapter 14 The McNamara-O'Hara Service Contract Act (PDF)
- Chapter 64 Employment of Workers with Disabilities at Special Minimum Wages under Section 14(c)
Applicable Laws and Regulations
- Laws
- McNamara-O’Hara Service Contract Act of 1965, as Amended 41 U.S.C. 351 et seq. (PDF)
- Fair Labor Standards Act of 1938, as Amended 29 U.S.C. 201 et seq. (PDF)
- Contract Work Hours and Safety Standards Act, as Amended 40 U.S.C. 3701 et seq. (PDF)
- The Davis Bacon Act 40 U.S.C. 3141 et seq.
- Walsh-Healey Public Contracts Act 41 U.S.C. 35 et seq.
- Regulations
- SCA
- 29 C.F.R. Part 4 Labor Standards for Federal Service Contracts
- 29 C.F.R. Part 6 Rules of Practice for Administrative Proceedings Enforcing Labor Standards In Federal and Federally Assisted Construction Contracts and Federal Service Contracts
- 29 C.F.R. Part 8 Practice Before the Administrative Review Board With Regard to Federal Service Contracts
- FLSA
- 29 C.F.R. 525 Employment of Workers With Disabilities Under Special Certificates
- 29 C.F.R. Part 541 Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Computer and Outside Sales Employees
- 29 C.F.R. 778 Overtime Compensation
- 29 C.F.R. 785 Hours Worked
- Other Fair Labor Standards Act Regulations
- CWHSSA
- 29 C.F.R. Part 5 Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction (Also Labor Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act.
- 29 C.F.R. Part 6 Rules of Practice for Administrative Proceedings Enforcing Labor Standards In Federal and Federally Assisted Construction Contracts and Federal Service Contracts
- 29 C.F.R. Part 8 Practice Before the Administrative Review Board With Regard to Federal Service Contracts
- PCA
- 41 C.F.R. Part 50-201 General Regulations
- 41 C.F.R. Part 50-202 Minimum Wage Determinations
- 41 C.F.R. Part 50-203 Rules of Practice
- 41 C.F.R. Part 210 Statements of General Policy and Interpretation Not Directly Related to Regulations