A guide to the McNamara-O'Hara service contract act of 1965

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Title:
A guide to the McNamara-O'Hara service contract act of 1965
Series Title:
WHPC publication ;
Portion of title:
McNamara-O'Hara service contract act of 1965
Physical Description:
6 p. : tables. ;
Language:
English
Creator:
United States -- Wage and Hour and Public Contracts Divisions
Publisher:
U.S. Dept. of Labor, Wage and Hour and Public Contracts Divisions
Place of Publication:
Washington?
Publication Date:

Subjects

Subjects / Keywords:
Officials and employees -- Salaries, etc -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
"Printed March 1966."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004955784
oclc - 84025320
System ID:
AA00009173:00001


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A Guide

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UNITED S1
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WAGE AND HOL
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WHPC Publication 1149
Printed March 1966


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FATES DEPARTMENT OF LABOR
SWillard Wirtz, Secretary

JR AND PUBLIC CONTRACTS DIVISIONS
nce T. Lundquist, Administrator

















THE McNAMARA-O'HARA SERVICE CONTRACT ACT


This Guide provides general information concerning the application
of the Service Contract Act of 1965. It is not to be considered in the
same light as official statements of position as contained in the regula-
tions, interpretative bulletins and other such releases, formally
adopted by the Divisions and published in the Federal Register.
Copies of such publications may be obtained free from the Divisions'
nearest office. A listing of offices is on page 5.


of 1965

EFFECTIVE

JANUARY 20, 1966

is administered by the

Wage and Hour and Public Contracts Divisions

of the

United States Depa.rtment of Labor












HANDY GUIDE
to the
Service Contract Act of 1965

GENERAL PROVISIONS
The McNamara-O'Hara Service Contract. Act of 1965 applies gen-
erally to Government contracts, the principal purpose of which is to
furnish services in the United States through the use of service em-
ployees. It is effective as to contracts entered into pursuant to nego-
tiations concluded or invitations for bids issued on or after January 20,
1966.
Contractors and subcontractors performing work under such con-
tracts are required to observe minimum standards of compensation for
employees employed in the contract work. Compensation in accord-
ance with that prevailing in the locality and safe and sanitary working
conditions are required for service employees engaged in work under
contracts in excess of $2,500.
The act applies to contracts to furnish services in any State, the
District of Columbia, Puerto Rico, the Virgin Islands, Outer Con-
tinental Shelf Lands, American Samoa, Guam, Wake Island, Eniwetok
Atoll, Kwajalein Atoll, and Jolmston Island.
SERVICE EMPLOYEES
As defined in the act, service employees include guards, watchmen,
and any person engaged in a recognized trade or craft, or other
skilled mechanical craft, or in unskilled, or semiskilled, or skilled
manual labor occupations; and any other employee including a fore-
man or supervisor in a position having trade, craft, or laboring experi-
ence as the paramount requirement. All such persons are included
regardless of any contractual relationship that may be alleged to exist
between a contractor or subcontractor and such persons.
MINIMUM WAGE FOR ALL COVERED CONTRACTS
Every contractor who enters into any contract with the Federal
Government the principal purpose of which is to furnish services
through the use of service employees and every subcontractor under
such a contract is required to pay employees engaged in performing
the contract work not less than the minimum wage specified under
section 6(a) (1) of the Fair Labor Standards Act.





LABOR STANDARDS FOR COVERED CONTRACTS IN EXCESS OF $2,500
Contractors and subcontractors performing work under any contract
entered into by the United States or the District of Columbia in excess
of $2,500 which is subject to the act must observe the following addi-
tional requirements:
Minimum Wage
Service employees engaged in the performance of the contract or
any subcontract thereunder shall be paid the applicable minimum
monetary wage specified in the contract and in any bid specification
therefore, which in no case shall be lower than the Fair Labor Stand-
ards Act minimum provided for all covered contracts. The act pro-
vides for determination by the Secretary of Labor or his authorized
representative of such minimum monetary wages for the va rious classes
of service employees in accordance with prevailing rates for such
employees in the locality, and requires that they be specified in the
contract and any bid specification therefore.

Fringe Benefits
Service employees engaged in the performance of the contract or
any subcontract thereunder shall be furnished such fringe benefits as
have been determined by the Secretary of Labor or his authorized
representative to be prevailing for such employees in the locality and
which are specified in the contract and any bid specification therefore
as applicable to such employees.
As required by the act, provisions specifying fringe benefits to be
furnished to a class or classes of service employees performing work
on the contract will be included in the contract documents whenever
the Secretary or his authorized representative determines the furnish-
ing of benefits such as the following to be prevailing for such em-
ployees in the locality: Medical or hospital care, pensions on retire-
ment or death, compensation for injuries or illness resulting from
occupational activity, or insurance to provide any of the foregoing,
unemployment benefits, life insurance, disability and sickness in-
surance, accident insurance, vacation and holiday pay, costs of ap-
prenticeship or other similar programs and other bona fide fringe
benefits not otherwise required by Federal, State, or local law to be
provided by the contractor or subcontractor.
The obligation of a contractor or subcontractor to furnish any
specified fringe benefits may be discharged by furnishing any equiva-
lent combinations of benefits, or by making equivalent or differential
payments in cash, in accordance with regulations of the Administrator
of the Wage and Hour and Public Contracts Divisions, Department
of Labor.






Safe and Healthful Working Conditions


Contractors and subcontractors are obligated to assure that no part
of the services covered by the act will be performed in buildings or
surroundings or under working conditions, provided by or under the
control or supervision of the contractor or any subcontractor, which
are unsanitary or hazardous or dangerous to the health or safety of
service employees engaged to furnish the services.

Notice to Employees
The contractor or subcontractor must provide a service employee,
when he commences work on a contract subject to the act, with a
notice of the compensation required by the act or shall post such
notice in a location where it may be seen by all employees performing
on the contract, using such poster as may be provided by the Depart-
ment of Labor.
Recordkeeping Requirements
The contractor or subcontractor must make, and maintain for a
period of 3 years from the completion of the work, the following
records for each service employee performing work under the contract:
(1) Name and address.
(2) Work classification or classifications, rate or rates of mone-
tary wages and fringe benefits provided, rate or rates of fringe
benefit payments in lieu thereof, and total daily and weekly
compensation.
(3) Daily and weekly hours so worked.
(4) Any deductions, rebates, or refunds from the employee's
total daily or weekly compensation.
These records shall be made available for inspection and transcrip-
tion by authorized representatives of the Wage and Hour and Public
Contracts Divisions.
Notice in Subcontracts
Each contractor under a contract subject to the act is required to
insert clauses relating to the Service Contract Act in all his subcon-
tracts, as prescribed by regulations of the Administrator.
EXEMPTIONS
The McNamara-O'Hara Service Contract Act of 1965 does not
apply to the following:
(1) Any contract of the United States or District of Columbia
for construction, alteration, and/or repair, including painting and
decorating of public buildings or public works;
(2) Any work required to be done in accordance with the pro-
visions of the Walsh-Healey Public Contracts Act;





(3) Any contract for the carriage of freight or personnel by
vessel, airplane, bus, truck, express, railway line, or oil or gas
pipeline where published tariff rates are in effect;
(4) Any contract for the furnishing of services by radio, tele-
phone, telegraph, or cable companies, subject to the Communica-
tions Act of 1934;
(5) Any contract for public utility services, including electric
light and power, water, steam, and gas;
(6) Any employment contract providing for direct services to
a Federal agency by an individual or individuals;
(7) Any contract with the Post Office Department, the princi-
pal purpose of which is the operation of postal contract stations;
(8) Any services to be furnished outside the United States as
defined in the act; and
(9) Any contract exempted by the Secretary of Labor under
section 4(b) of the act. This section authorizes the Secretary to
provide such reasonable limitations, variations, tolerances, and
exemptions to and from any or all provisions of the act as he
may find necessary and proper in the public interest or to avoid
serious impairment to the conduct of Government business.
VIOLATIONS AND PENALTIES
In the event of violations, the act authorizes the withholding of
accrued payments due on the contract to the extent necessary to pay
covered workers the difference between the wages and benefits re-
quired by the contract and those actually paid. The Government may
also bring court action against the contractor, subcontractor, or surety
to recover any remaining amount of the underpayment. In addition,
the contract may be terminated because of violations and the con-
tractor may be held liable for any resulting cost to the Government.
The Government will not award another contract for 3 years to a
person or firm responsible for violations, unless the Secretary of
Labor recommends otherwise.
ENFORCEMENT
Authorized representatives of the WHPC Divisions investigate for
compliance with the Service Contract Act. Anyone can request the
Divisions' assistance if he thinks a firm is violating the act. Com-
plaints, records, and other information from employers and em-
ployees are treated confidentially.
OTHER OBLIGATIONS
Observance of the labor standards of the Service Contract Act does
not relieve the employer of any obligation he may have under any
other laws or agreements providing for higher labor standards.






ASSISTANCE AVAILABLE

Whether contracts and particular employees are covered by the
McNamara-O'Hara Service Contract Act depends on the facts in each
case. If you want to know about the application of the law in a
particular case, contact the nearest office of the WHPC Divisions.
Give information on the name of the contractor, the Government
agency that. issued the contract, the contract number, the amount of the
contract, what service the firm furnishes under the contract, the method
and rate of pay, the hours of work, and any other details you think
will be needed for an adequate reply.

WHERE INFORMATION CAN BE OBTAINED

Inquiries a bout the Fair Labor Standards Act, Walsh-Healey Pub-
lic Contracts Act, McNamara-O'Hara Service Contract Act and their
application will be answered by mail, telephone, or personal interview
at any regional or field office of the Wage and Hour Public Contracts
Divisions of the U.S. Department of Labor. These offices also supply
publications free of charge.


State
Alabama -------

Alaska_-----------
Arizona_------ ---
Arkansas----------
California--------



Colorado----------
Connecticut. ------
Delaware----------
District of
Columbia_------
Florida_-----------

Georgia----------

Hawaii_---------
Idaho_------------
Illinois------------
Indiana ---------
Iowa_--- ----- --
Kansas_--------
Kentucky--. --
Louisiana __


Regional Office
Birmingham -__-----

San Francisco, Calif -
San Francisco, Calif -----
Birmingham, Ala -_-_---
San Francisco -------



Kansas City, Mo_---
Boston, Mass -------
Chambersburg, Pa ------

Chambersburg, Pa ------
Atlanta, Ga _-------

Atlanta ------------

San Francisco, Calif -----
San Francisco, Calif -----
Chicago_--------
Chicago, Ill------------
Kansas City, Mo --------
Kansas City, Mo---------
Nashville, Tenn_ ----
Birmingham, Ala --------


* Field station.


Field Office
Birmingham, Mobile,
Montgomery.
Anchorage.*
Salt Lake City, Utah.
Little Rock.
Hollywood, Long Beach,
Los Angeles, Oakland,
Sacramento, San Fran-
cisco, Whittier.
Denver.
Hartford.
Philadelphia, Pa.

College Park, Md.
Jacksonville, Miami, North
Miami, Tampa.
Atlanta, Columbus,
Hapeville, Savannah.
Honolulu.
Portland, Oreg.
Chicago, Springfield.
Indianapolis, South Bend.
Des Moines.
Wichita.
Lexington, Louisville.
Baton Rouge, New Orleans,
Shreveport.






State
Maine-----------
Maryland _-----
Massachusetts -----
Michigan --------
Minnesota--------
Mississippi -------
Missouri---------
Montana -----
Nebraska---------
Nevada_------
New Hampshire ---
New Jersey -------
New Mexico----
New York-----


North Carolina----

North Dakota ----
Ohio -------

Oklahoma ------
Oregon __------
Pennsylvania- ---


Rhode Island -____
South Carolina ----
South Dakota -----
Tennessee ----

Texas--------



Utah------
Vermont ---
Virginia -- ---
Washington ___-__-
West Virginia -----
Wisconsin ____
Wyoming ----


Regional Office
Boston, Mass_------
Chambersburg, Pa .-----
Boston ----------
Cleveland, Ohio_ ----
Chicago, Ill -----
Birmingham, Ala --------
Kansas City ------
San Francisco, Calif- -
Kansas City, Mo -------
San Francisco, Calif -----
Boston, Mass -------
New York, N.Y__---
Dallas, Tex_-------
New York_ _______


Atlanta, Ga --------

Kansas City, Mo_ -------
Cleveland __------

Dallas, Tex -------
San Francisco, Calif ---
Chambersburg --- --


Boston, Mass-------
Atlanta, Ga___------
Kansas City, Mo_----
Nashville----- ----

Dallas------------------



San Francisco, Calif -----
Boston, Mass_------
Nashville, Tenn ---------
San Francisco, Calif -----
Nashville, Tenn _----_--
Chicago, Ill__-----
Kansas City, Mo --------


Field Office
Portland.
Baltimore, College Park.
Boston, Springfield.
Detroit, Grand Rapids.
Minneapolis.
Jackson.
Kansas City, St. Louis.
Seattle, Wash.
Omaha.
Oakland, Calif.
Manchester.
Newark, Paterson, Trenton.
Albuquerque.
Bronx, Brooklyn, Buffalo,
Hempstead, New York,
Syracuse.
Charlotte, Greensboro,
Raleigh.
Sioux Falls, S. Dak.
Cincinnati, Cleveland,
Columbus.
Oklahoma City, Tulsa.
Portland.
Harrisburg, McKeesport,
Philadelphia, Pittsburg,
Wilkes-Barre.
Providence.
Columbia.
Sioux Falls.
Knoxville, Memphis,
Nashville.
Corpus Christi, Dallas,
El Paso, Fort Worth,
Houston, San Antonio,
Waco.
Salt Lake City.
Springfield, Mass.
Richmond, Roanoke.
Seattle.
Charleston, Clarksburg.
Madison, Milwaukee.
Denver, Colo.


Puerto Rico---
Virgin Islands -----
Guam --------
Wake Island ---
American Samoa- -


Santurce ---------
Santurce, P.R--------
San Francisco, Calif- ----
San Francisco, Calif -----
San Francisco, Calif -----


Santurce, Mayaguez.

Honolulu, Hawaii.
Honolulu, Hawaii.


U.S. GOVERNMENT PRINTING OFFICE: 1966 0-206-344













































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