The McNamara–O'Hara Service Contract Act of 1965 (SCA), codified at , is a US labor law 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 contractor (North American English) or builder (British English), 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 c ...

s and

subcontractor A subcontractor is a person or business which undertakes to perform part or all of the obligations of another's contract, and a subcontract is a contract which assigns part of an existing contract to a subcontractor. A general contractor, prime ...

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

employee Employment is a relationship between two party (law), parties Regulation, regulating the provision of paid Labour (human activity), labour services. Usually based on a employment contract, contract, one party, the employer, which might be a cor ...

s in various classes no less than the wage rates and fringe benefits 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, unemp ...

, 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 (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

or the

District of Columbia Washington, D.C., formally the District of Columbia and commonly known as Washington or D.C., is the capital city and Federal district of the United States, federal district of the United States. The city is on the Potomac River, across from ...

, 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 protected from harm or other danger. Safety can also refer to the control of recognized hazards in order to achieve an acceptable level of risk. Meanings The word 'safety' entered the English language in the 1 ...

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 American law United States federal government administration legislation United States federal labor legislation {{US-fed-statute-stub

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See also

External links