McNamara O’Hara Service Contract Act of 1965

The McNamara-O’Hara Service Contract Act of 1965 (SCA)

This Act of legislation applies to contracts over $2,500 entered into with the United States or the District of Columbia for the purpose of furnishing services (e.g., security, janitorial, or cafeteria services) through the use of service employees. The definition of a “service employee” includes any employee engaged in performing services on a covered contract other than a bona fide executive, administrative, or professional employee.1 The main tenet of the SCA requires contractors and subcontractors to pay their service employees no less than the minimum monetary wages and fringe benefits found prevailing in a particular locality in accordance with the applicable wage determination or collective bargaining agreement.

5-Easy Steps to Fringe Benefit Compliance

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