FAR 52.222-41 — Service Contract Labor Standards (Service Contract Act)
Implements the McNamara-O'Hara Service Contract Act — requires contractors performing federal service contracts to pay prevailing wages and fringe benefits per Department of Labor Wage Determinations.
When This Clause Applies
Required in service contracts over $2,500 where service employees are used. Excluded for construction (FAR 22.4 Davis-Bacon), commercial item services (FAR 52.212-4 alt I in some cases), and certain professional employees.
What This Means for Contractors
Contractors must pay each service employee no less than the wage and fringe rate listed on the applicable DOL Wage Determination for the contract's locality and labor category. Wage Determinations are incorporated by reference and update annually. Failure to pay triggers back-wages, contract termination, and potential DOL debarment.
Common Pitfalls
- 1Using outdated Wage Determinations after annual updates
- 2Misclassifying employees as exempt to avoid coverage
- 3Failing to provide health & welfare fringe in cash or qualified benefits
- 4Not tracking labor by category and locality
Related Topics
Related Clauses
Fair Labor Standards Act and Service Contract Labor Standards — Price Adjustment (Multiple Year and Option Contracts)
Provides for price adjustments to Service Contract Act covered contracts when DOL Wage Determinations are updated during option exercises on multi-year contracts.
Fair Labor Standards Act and Service Contract Labor Standards — Price Adjustment
Counterpart to 52.222-43 for single-year SCA contracts — provides price adjustments when DOL Wage Determinations are updated during contract performance.
Continue Your Research
NAICS 518210 — Data Processing, Hosting, and Related Services
Find federal contracts under NAICS 518210. Common agencies, set-asides, contract values.
NAICS 541330 — Engineering Services
Find federal contracts under NAICS 541330. Common agencies, set-asides, contract values.
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