22.1101
Applicability
The Service Contract Act ensures fair compensation for most service employees on federal contracts, but excludes bona fide executive, administrative, and professional staff from its protections.
Overview
FAR 22.1101 explains the applicability of the Service Contract Act of 1965 (SCA), now codified at 41 U.S.C. chapter 67, which establishes labor standards for certain service contracts with the federal government. The SCA is designed to ensure that government contractors pay fair wages and benefits to their blue-collar and some white-collar service employees. However, the Act specifically excludes bona fide executive, administrative, and professional employees from its coverage. This section clarifies which categories of employees are protected under the SCA and which are not, guiding contractors in determining their obligations under federal service contracts.
Key Rules
- Service Contract Act Coverage
- The SCA applies to contracts where service employees (primarily blue-collar and some white-collar) are employed.
- Exclusions
- Bona fide executive, administrative, and professional employees are not covered by the SCA.
Responsibilities
- Contracting Officers: Must ensure contracts subject to the SCA include appropriate clauses and that contractors are aware of their obligations.
- Contractors: Must correctly identify which employees are covered by the SCA and ensure those employees receive fair compensation as required.
- Agencies: Oversee compliance with SCA requirements and address any violations.
Practical Implications
- This section exists to clarify which employees are protected by the SCA, helping contractors avoid misclassification and potential violations.
- It impacts daily contracting by requiring careful review of employee roles and compensation practices.
- Common pitfalls include misclassifying employees or failing to provide required wages and benefits to covered workers.