37.107
Service Contract Labor Standards
Service Contract Labor Standards require minimum wages and benefits for certain service contracts, and applicability depends on statutory definitions and exceptions.
Overview
FAR 37.107 addresses the application of the Service Contract Labor Standards (SCLS), as established by 41 U.S.C. chapter 67, to certain service contracts. This statute mandates minimum wages, fringe benefits, and other working conditions for employees performing on covered federal service contracts. The applicability of these standards to a specific contract is determined by the definitions and exceptions outlined in the statute and its implementing regulations. Contractors and contracting officers must carefully review these criteria to determine if SCLS applies to their contract actions.
Key Rules
- Minimum Wages and Fringe Benefits
- Covered service contracts must provide employees with at least the minimum wages and fringe benefits specified by SCLS.
- Applicability Determination
- The decision on whether SCLS applies depends on statutory definitions and regulatory exceptions, not solely on contract type or value.
Responsibilities
- Contracting Officers: Must determine SCLS applicability for each service contract and ensure inclusion of appropriate clauses when required.
- Contractors: Must comply with wage, benefit, and working condition requirements if SCLS applies.
- Agencies: Oversee compliance and ensure proper application of SCLS provisions.
Practical Implications
- This section ensures fair labor standards for service contract workers and helps prevent wage undercutting in federal service contracts.
- Contractors must be vigilant in reviewing contract requirements and SCLS applicability to avoid noncompliance.
- Misapplication or omission of SCLS can result in legal and financial penalties.