Service_Contract_Act_of_1965.docx

Service Contract Act of 1965, as amended (Nov 2007), 52.222.41 This subcontract is subject to the following provisions and to all applicable provision of the Act and regulations of the Secretary of Labor (29 CFR Part 4). This clause does not apply to contracts or subcontracts administratively exempted by the Secretary of Labor or exempted by 41 U.S.C. 356, as interpreted in Subpart C of 29 CFR Part 4.

The McNamara-O'Hara Service Contract Act (SCA) applies to every contract entered into by the United States or the District of Columbia, the principal purpose of which is to furnish services to the United States through the use of service employees. The SCA requires contractors and subcontractors performing services on covered federal or District of Columbia contracts in excess of $2,500 to pay service employees in various classes no less than the monetary wage rates and to furnish fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. Safety and health standards also apply to such contracts.

· 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.

The compensation requirements of the SCA are enforced by the Employment Standards Administration's Wage and Hour Division (WHD) within the U.S. Department of Labor (DOL). The SCA safety and health requirements are enforced by the Occupational Safety and Health Administration (OSHA) within DOL.

RECORDKEEPING

Each contractor and subcontractor performing work subject to the McNamara-O'Hara Service Contract Act (SCA) shall maintain certain records for each employee performing work on the covered contract. The following is a list of the basic records that must be maintained for three years from completion of the work include:

· Name, address, and social security number of each employee;

· The correct work classification(s), wage rate(s), and fringe benefits provided (or cash equivalent payments provided in lieu of fringe benefits);

· The total daily and weekly compensation of each employee;

· The number of daily and weekly hours worked by each employee;

· Any deductions, rebates, or refunds from each employee's compensation; and

· Any list of a predecessor contractor's employees which had been furnished showing employees' length of service information.

· See 29 CFR 4.6(g) and 29 CFR 4.185 for further information.