McNamara-O’Hara Service Contract Act USA

The McNamara-O’Hara Service Contract Act (SCA) is a federal law in the United States that was enacted in 1965. The act requires that contractors and subcontractors performing services on federal contracts in excess of $2,500 pay their service employees at least the prevailing wage and fringe benefits for similar work in the area where the contract is performed. The act also requires that contractors and subcontractors comply with certain labor standards, such as the minimum wage, overtime pay, and safe working conditions.

The McNamara-O’Hara Service Contract Act has several provisions that contractors and subcontractors must follow when performing services on federal contracts:

1. Paying Prevailing Wages: Contractors and subcontractors are required to pay their service employees at least the prevailing wage and fringe benefits for similar work in the area where the contract is performed.
2. Complying with Labor Standards: Contractors and subcontractors are required to comply with certain labor standards, such as the minimum wage, overtime pay, and safe working conditions.
3. Keeping Records: Contractors and subcontractors are required to keep records of the wages and benefits paid to their employees, and to make them available for inspection by the Department of Labor upon request.
4. Posting Requirements: Contractors and subcontractors are required to post a copy of the wage determination and a notice of the Act’s provisions on the job site.
5. Compliance: Contractors and subcontractors are required to ensure compliance with all provisions of the McNamara-O’Hara Service Contract Act and any regulations issued by the Department of Labor to implement the act.
6. The Department of Labour’s Wage and Hour Division is responsible for enforcing the provisions of the act, and for determining the prevailing wage rates for different types of work in each area.

McNamara-O’Hara Service Contract Act History and Amendment

The McNamara-O’Hara Service Contract Act (SCA) was signed into law by President Lyndon B. Johnson on October 22, 1965. It is named after its sponsors, Robert McNamara, the Secretary of Defense, and Peter J. O’Hara, the Assistant Secretary of Labor. It was enacted in response to concerns about low wages and poor working conditions on federal service contracts and to ensure that service workers on federal contracts are paid fairly and receive the same benefits as their counterparts in the private sector.

The act has been amended several times since its passage in 1965. Some of the notable amendment includes:

1. In 1974, the SCA was amended to include service employees of state and local government agencies as covered workers under the act.
2. In 1978, the SCA was amended to include provisions requiring contractors to provide notice to employees of their rights under the act, and to include a prohibition on discrimination against employees for asserting their rights under the act.
3. In 1985, the SCA was amended to include provisions requiring contractors to provide training and apprenticeship programs for service employees.
4. In 1990, the SCA was amended to include provisions requiring contractors to provide notice of the termination of a contract and to provide a right of first refusal of employment to affected employees.
5. In 2009, The SCA was amended by the National Defense Authorization Act for Fiscal Year 2010, which expanded the definition of “service employee” to include certain employees of contractors who provide services on military bases.

McNamara-O’Hara Service Contract Act Responsibilities and Accountabilities

The McNamara-O’Hara Service Contract Act (SCA) imposes specific responsibilities and accountabilities on contractors and subcontractors performing services on federal contracts. These include:

1. Paying Prevailing Wages: Contractors and subcontractors are responsible for paying their service employees at least the prevailing wage and fringe benefits for similar work in the area where the contract is performed, as required by the SCA.
2. Complying with Labor Standards: Contractors and subcontractors are responsible for complying with certain labor standards, such as the minimum wage, overtime pay, and safe working conditions, as required by the SCA.
3. Keeping Records: Contractors and subcontractors are responsible for keeping records of the wages and benefits paid to their employees, and for making them available for inspection by the Department of Labor upon request, as required by the SCA.
4. Posting Requirements: Contractors and subcontractors are responsible for posting a copy of the wage determination and a notice of the Act’s provisions on the job site, as required by the SCA.
5. Compliance: Contractors and subcontractors are responsible for ensuring compliance with all provisions of the McNamara-O’Hara Service Contract Act and any regulations issued by the Department of Labor to implement the act.
6. Right of first refusal of employment: Contractors are responsible to provide a right of first refusal of employment to affected employees when a contract terminates.
7. The Department of Labor’s Wage and Hour Division is responsible for enforcing the provisions of the act and for determining the prevailing wage rates for different types of work in each area.
8. State attorney general may also bring a civil action on behalf of its residents in federal court, to enforce compliance with the act.

McNamara-O’Hara Service Contract Act Sanctions and Remedies

The McNamara-O’Hara Service Contract Act (SCA) provides for a range of sanctions and remedies for violations of the Act’s provisions. These include:

1. Civil Penalties: The Act authorizes the U.S. Department of Labor to bring civil actions against contractors and subcontractors who violate the Act’s provisions, and to seek civil penalties of up to $10,000 for each violation.
2. Injunctions: The Act authorizes the U.S. Department of Labor to seek injunctions to prevent or remedy violations of the Act’s provisions.
3. Suspension and Debarment: The Act allows the U.S. Department of Labor to suspend or debar contractors and subcontractors who violate the Act’s provisions, which prohibits them from bidding on or working on federal service contracts for a specified period of time.
4. Back Pay and Damages: The Act allows for reimbursement of lost wages and benefits to service employees who were paid less than the prevailing wage rates, and to recover damages for any damages suffered as a result of the violations.
5. Court of Law: The Act also provides that any person aggrieved by a violation of the act may bring a civil action in an appropriate United States district court or in any other court of competent jurisdiction.
6. The Department of Labor’s Wage and Hour Division is responsible for enforcing the provisions of the act and determining the prevailing wage rates for different types of work in each area.
7. State attorney general may also bring a civil action on behalf of its residents in federal court, to enforce compliance with the act.

In summary, The McNamara-O’Hara Service Contract Act (SCA) is a federal law that requires contractors and subcontractors performing services on federal contracts to pay their service employees at least the prevailing wage and fringe benefits for similar work in the area where the contract is performed. The act also requires contractors to comply with certain labor standards, such as the minimum wage, overtime pay, and safe working conditions. As a result, contractors and subcontractors are responsible for complying with these requirements and for ensuring that their service employees are paid fairly and receive the same benefits as their counterparts in the private sector.