Certain federal laws require contractors and subcontractors to pay some employees wages in excess of minimum wage. Most notably, the Davis-Bacon Act (“DBA”) and the McNamara-O'Hara Service Contract Act (“SCA”) impose wage requirements related to nearly all construction and service contracts with the U.S. or District of Columbia governments.
The DBA requires contractors to pay laborers and mechanics prevailing wages as determined and published by the Department of Labor (“DOL”). The Act applies to contracts with the U.S. government and District of Columbia for the construction, alteration, or repair of public buildings or public works (provided that the contract sum is at least $2,000). The term “prevailing wages” means the locally prevailing wages and fringe benefits paid on similar projects as determined by the DOL. In addition to the Act, there are approximately 60 other statutes whose intent is to assist construction projects through grants, loans, loan guarantees, and insurance include prevailing wage requirements. These "related Acts" involve construction in transportation, housing, air and water pollution reduction, and health.
The SCA applies to every contract entered into by the United States or the District of Columbia, the principal purpose of which is to furnish services to the United States through the use of service employees. The definition of "service employee" includes any employee engaged in performing services on a covered contract (other than a bona fide executive, administrative, or professional employee who meets the exemption criteria).
The SCA requires contractors and subcontractors performing services on covered federal or District of Columbia contracts in excess of $2,500 to pay service employees in various classes no less than the monetary wage rates and to furnish fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. Safety and health standards also apply to such contracts.
The DOL maintains a website, http://www.wdol.gov/, that provides a single location to use in obtaining appropriate SCA and DBA wage determinations for each official contract action.
The DBA requires contractors to pay laborers and mechanics prevailing wages as determined and published by the Department of Labor (“DOL”). The Act applies to contracts with the U.S. government and District of Columbia for the construction, alteration, or repair of public buildings or public works (provided that the contract sum is at least $2,000). The term “prevailing wages” means the locally prevailing wages and fringe benefits paid on similar projects as determined by the DOL. In addition to the Act, there are approximately 60 other statutes whose intent is to assist construction projects through grants, loans, loan guarantees, and insurance include prevailing wage requirements. These "related Acts" involve construction in transportation, housing, air and water pollution reduction, and health.
The SCA applies to every contract entered into by the United States or the District of Columbia, the principal purpose of which is to furnish services to the United States through the use of service employees. The definition of "service employee" includes any employee engaged in performing services on a covered contract (other than a bona fide executive, administrative, or professional employee who meets the exemption criteria).
The SCA requires contractors and subcontractors performing services on covered federal or District of Columbia contracts in excess of $2,500 to pay service employees in various classes no less than the monetary wage rates and to furnish fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. Safety and health standards also apply to such contracts.
The DOL maintains a website, http://www.wdol.gov/, that provides a single location to use in obtaining appropriate SCA and DBA wage determinations for each official contract action.
For more information contact J. Nicole Windsor at Windsor@bowie-jensen.com or 410-583-2400. Ms. Windsor concentrates her practice on employment law.
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