Service Contract Labor Standards: Basics and Pricing Implications

Service Contract Labor Standards, formerly known as The Service Contract Act (SCA) of 1965, sets minimum wage and fringe benefit standards for workers covered by the act. The SCA, which outlines various operational requirements for service contracts over $2,500, can be a compliance nightmare for government contractors caught unaware.

The SCA’s core requirement is that contractors and subcontractors performing services on prime contracts involving more than $2,500 pay service employees no less than the wage rates and fringe benefits prevailing in the locality, or the rates contained in a predecessor contractor’s collective bargaining agreement. Determining what these rates are and who they apply to can be confusing to say the least.

Violating the SCA carries stiff penalties. The SCA provides authority for the government to withhold contract funds to reimburse underpaid employees, terminate the contract, hold the contractor liable for associated costs to the government, and debar the contractor and its principal managers and employees from future government contracts for a period of three years.

A participant who completes the webinar will:

• Learn when the SCA applies to contracts,
• Understand what employees are covered,
• Explore how the SCA can impact pricing,
• Understand what benefits satisfy health and welfare requirements,
• Learn how to implement SCA compliance programs,
• Discuss impacts of labor-related Executive Orders, including Fair Pay and Safe Workplaces
• And more!

Got questions? Connect with an experienced Aprio advisor today. 
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