Statutory and Executive order requirements
FAR 22.1002 mandates that contractors on covered service contracts comply with statutory wage standards and executive orders establishing minimum wage and paid leave requirements for service employees.
Overview
FAR 22.1002 outlines the statutory and executive order requirements that apply to service contracts under the Service Contract Labor Standards (SCLS), formerly known as the Service Contract Act (SCA). This section provides the legal foundation for wage determinations, the application of prevailing wage rates, and the integration of various executive orders that set minimum wage and leave requirements for service employees working on federal contracts. It references the need to comply with both statutory mandates and executive orders, ensuring that contractors pay service employees no less than the prevailing wage rates or those established by collective bargaining agreements, and adhere to federal minimum wage and paid sick leave requirements where applicable.
Key Rules
- General Requirements
- Contractors must comply with statutory wage and benefit requirements for service employees on covered contracts.
- Prevailing Wage Determinations
- Wage rates are determined based on prevailing local rates or collective bargaining agreements.
- Minimum Wage Application
- The Fair Labor Standards Act (FLSA) minimum wage applies unless a higher rate is required by other regulations or executive orders.
- Executive Orders
- Executive Orders 13658, 14026, and 13706 establish higher minimum wages and paid sick leave requirements for certain federal contracts.
Responsibilities
- Contracting Officers: Ensure contracts include appropriate wage determinations and clauses reflecting statutory and executive order requirements.
- Contractors: Pay service employees at least the prevailing wage or minimum wage as required, and provide paid sick leave if applicable.
- Agencies: Monitor compliance and enforce wage and benefit standards.
Practical Implications
- This section ensures fair compensation and benefits for service employees on federal contracts.
- Contractors must stay updated on wage determinations and executive order changes to remain compliant.
- Noncompliance can result in penalties, contract termination, or debarment.