Lately, we seem to be constantly reminded of the necessity of accurately identifying contracts which are (or should be) covered by the Service Contract Act (SCA) (aka Service Labor Contract Standards (SCLS)) and the subsequent labor category mapping. Unfortunately, these reminders tend to come at quite a cost, not only financially but also as an extreme burden on your staff. With this in mind, we decided to share some common issues and suggestions, in hopes of encouraging you to kick off the New Year with a resolution to be proactive in your compliance efforts.
What is the Service Contract Labor Standards (SCLS)?
The McNamara-O’Hara Service Contract Act (41 U.S.C. §§ 351-358) (SCA) requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to provide service employees certain minimum wage and fringe benefits when performing work on those awarded federal service contracts. The Department of Labor is responsible for enforcing SCLS.