The Service Contract Act of 1965 (SCA) is a federal law that was enacted to ensure that employees who work on service contracts with the federal government are paid fairly and receive appropriate benefits. The SCA was enacted to prevent contractors from taking advantage of employees who work on government contracts by paying them less than they would receive in the private sector.
The SCA applies to all service contracts that are entered into with the federal government and have a value of more than $2,500. This includes contracts for janitorial services, maintenance, and food services, among others. The SCA requires that these contracts include provisions that guarantee employees will receive a minimum wage and benefits that are commensurate with those received by private sector employees.
Under the SCA, the Department of Labor is responsible for enforcing the law and ensuring that contractors comply with its requirements. The Department of Labor has the authority to investigate and determine whether a contractor is in violation of the SCA and may impose penalties or sanctions on contractors who violate the law.
The SCA also includes provisions that require contractors to maintain records and provide certain information to their employees. For example, contractors must maintain records of the hours worked by their employees and the wages and benefits paid to them. Contractors must also provide employees with a notice that informs them of their rights under the SCA.
The SCA has been amended several times since it was first enacted in 1965. In 2014, the Department of Labor issued final regulations that updated the SCA to align with modern employment practices. These regulations clarified the types of benefits that contractors must provide to their employees and established clearer requirements for recordkeeping and reporting.
In summary, the Service Contract Act of 1965 is an important federal law that protects the rights of employees who work on service contracts with the federal government. The SCA requires that these employees receive a minimum wage and benefits that are commensurate with those received by private sector employees. It is the responsibility of contractors to comply with the SCA and the Department of Labor to enforce its provisions.