In addition to the familiar laws enforced by the Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) – namely Executive Order 11246, the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act – some federal contractors are also subject to the requirements of the McNamara-O’Hara Service Contract Act (SCA).
The SCA is a wage and hour law that is enforced by the Department of Labor’s (DOL) Wage and Hour Division (WHD). It regulates wages, health and welfare benefits, vacation and holiday time, and health and safety standards applicable to covered government contractors that provide services through so-called “service employees.” Wages are set by occupation and location according to a wage determination issued by DOL. Covered contractors also must provide health and welfare benefits equal to or greater than a separate fringe benefit rate, also set out by DOL in the wage determination.
Given the complexities of the SCA, we prepared a primer to explain the basics of the law, the rights it confers, and the obligations it imposes on covered contractors. To further assist the reader, we present our primer in a user-friendly question and answer format.
Please note that this primer is designed to be informational only, and is not intended to convey legal advice. Specific issues regarding SCA compliance should be referred to legal counsel.
Members of the Center for Workplace Compliance (CWC) can read more here.