The McNamara–O'Hara Service Contract Act of 1965 (SCA), codified at , is a

US labor law United States labor law sets the rights and duties for employees, labor unions, and employers in the United States. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "org ...

that requires government to use its bargaining power to ensure fair wages for workers when it buys services from private contractors.

The Act requires

general contractor A general contractor, main contractor or prime contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of ...

s and

subcontractor A subcontractor is an individual or (in many cases) a business that signs a contract to perform part or all of the obligations of another's contract. Put simply the role of a subcontractor is to execute the job they are hired by the contractor f ...

s performing services on prime contracts in excess of $2,500 to pay service

employee Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other ...

s in various classes no less than the

wage rate A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as '' minimum wage'', ''prevailing wage'', and ''yearly bonuses,'' and remun ...

s and

fringe benefit Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, or perks) include various types of non-wage compensation provided to employees in addition to their normal wages or salaries. Insta ...

s found prevailing in the locality as determined by the

United States Department of Labor The United States Department of Labor (DOL) is one of the executive departments of the U.S. federal government. It is responsible for the administration of federal laws governing occupational safety and health, wage and hour standards, unemploym ...

, or the rates contained in a predecessor contractor's

collective bargaining agreement A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company (or with an ...

. This is also known as the

prevailing wage In United States government contracting, a prevailing wage is defined as the hourly wage, usual benefits and overtime, paid to the majority of workers, laborers, and mechanics within a particular area. This is usually the union wage. Prevailing ...

. The SCA applies to every contract entered into by the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

or the

District of Columbia ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...

, 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 Safety is the state of being "safe", the condition of being protected from harm or other danger. Safety can also refer to risk management, the control of recognized hazards in order to achieve an acceptable level of risk. Meanings There are ...

and health standards also apply to such contracts.

External links

Bush: Suspend Wage Rules for Service Workers
Nathan Newman ''TPM Cafe'' September 14, 2005

Jim VandeHei and Jonathan Weisman Journal Gazette September 14, 2005
"McNamara–O'Hara Service Contract Act - Employee Fringe Benefit Requirements"
1965 in law United States federal government administration legislation United States federal labor legislation {{US-fed-statute-stub

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See also

External links