Who Is Covered under the Service Contract Act

The Service Contract Act (SCA) is a federal law that was enacted in 1965 to protect the wages and benefits of employees working on government contracts. The law requires that federal contractors and subcontractors pay their employees a minimum wage and provide them with certain benefits. However, not all employees are covered under the SCA. In this article, we will discuss who is covered under the Service Contract Act.

The SCA applies to all contracts entered into by the federal government that are for services other than construction. This includes contracts for janitorial services, security services, food services, and many others. However, not all employees working on these contracts are covered under the SCA.

The SCA only applies to employees who are working on a covered contract. This means that if an employee is working on a contract that is not covered under the SCA, they are not entitled to the minimum wage and benefits required by the law.

The SCA also has specific requirements for the type of work that is covered. For example, the law only applies to work that is directly related to the performance of the contract. This means that if an employee is performing work that is not related to the contract, they may not be covered under the SCA.

Another factor that determines whether an employee is covered under the SCA is their job classification. The law provides specific classifications for different types of work, and employees must be classified correctly to be covered under the SCA. For example, if an employee is classified as a janitor, they must be paid the minimum wage and provided with benefits under the SCA.

It is important to note that there are exemptions to the SCA. For example, some contracts may be exempt from the law if they are for less than $2,500. Additionally, employees who are covered under a collective bargaining agreement may be exempt from the SCA if their wages and benefits are already covered under the agreement.

In conclusion, the Service Contract Act is an important law that protects the wages and benefits of employees working on government contracts. However, not all employees are covered under the law. To determine whether an employee is covered under the SCA, employers must consider the type of contract, the work being performed, and the employee`s job classification. By understanding who is covered under the SCA, employers can ensure that they are complying with federal law and providing their employees with the wages and benefits they deserve.