CHAPTER 6 —SERVICE CONTRACT LABOR STANDARDS
Chapter Referred to in Other Sections
This chapter is referred to in title 25 section 450j; title 29 sections 206, 653.
§351. Required contract provisions; minimum wages
(a) Every contract (and any bid specification therefor) entered into by the United States or the District of Columbia in excess of $2,500, except as provided in
(1) A provision specifying the minimum monetary wages to be paid the various classes of service employees in the performance of the contract or any subcontract thereunder, as determined by the Secretary, or his authorized representative, in accordance with prevailing rates for such employees in the locality, or, where a collective-bargaining agreement covers any such service employees, in accordance with the rates for such employees provided for in such agreement, including prospective wage increases provided for in such agreement as a result of arm's length negotiations. In no case shall such wages be lower than the minimum specified in subsection (b) of this section.
(2) A provision specifying the fringe benefits to be furnished in the various classes of service employees, engaged in the performance of the contract or any subcontract thereunder, as determined by the Secretary or his authorized representative to be prevailing for such employees in the locality, or, where a collective-bargaining agreement covers any such service employees, to be provided for in such agreement, including prospective fringe benefits increases provided for in such agreement as a result of arm's-length negotiations. Such fringe benefits shall include medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, unemployment benefits, life insurance, disability and sickness insurance, accident insurance, vacation and holiday pay, costs of apprenticeship or other similar programs and other bona fide fringe benefits not otherwise required by Federal, State, or local law to be provided by the contractor or subcontractor. The obligation under this subparagraph may be discharged by furnishing any equivalent combinations of fringe benefits or by making equivalent or differential payments in cash under rules and regulations established by the Secretary.
(3) A provision that no part of the services covered by this chapter will be performed in buildings or surroundings or under working conditions, provided by or under the control or supervision of the contractor or any subcontractor, which are unsanitary or hazardous or dangerous to the health or safety of service employees engaged to furnish the services.
(4) A provision that on the date a service employee commences work on a contract to which this chapter applies, the contractor or subcontractor will deliver to the employee a notice of the compensation required under paragraphs (1) and (2) of this subsection, on a form prepared by the Federal agency, or will post a notice of the required compensation in a prominent place at the worksite.
(5) A statement of the rates that would be paid by the Federal agency to the various classes of service employees if section 5341 or
(b)(1) No contractor who enters into any contract with the Federal Government the principal purpose of which is to furnish services through the use of service employees and no subcontractor thereunder shall pay any of his employees engaged in performing work on such contracts less than the minimum wage specified under
(2) The provisions of
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Amendments
1976—Subsec. (a).
Subsec. (a)(5).
Subsec. (b)(1).
1972—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(5).
Effective Date
Section 9 of
Short Title
Section 1 of
Section Referred to in Other Sections
This section is referred to in
§352. Violations
(a) Liability of responsible party; withholding payments due on contract; payment of underpaid employees from withheld payments
Any violation of any of the contract stipulations required by section 351(a)(1) or (2) or of
(b) Enforcement of section
In accordance with regulations prescribed pursuant to
(c) Cancellation of contract; contracts for completion of original contract; liability of original contractor for additional cost
In addition, when a violation is found of any contract stipulation, the contract is subject upon written notice to cancellation by the contracting agency. Whereupon, the United States may enter into other contracts or arrangements for the completion of the original contract, charging any additional cost to the original contractor.
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Section Referred to in Other Sections
This section is referred to in
§353. Law governing authority of Secretary
(a) Enforcement of chapter
(b) Limitations and regulations allowing variations, tolerances, and exemptions
The Secretary may provide such reasonable limitations and may make such rules and regulations allowing reasonable variation, tolerances, and exemptions to and from any or all provisions of this chapter (other than
(c) Predecessor contracts; employees' wages and fringe benefits
No contractor or subcontractor under a contract, which succeeds a contract subject to this chapter and under which substantially the same services are furnished, shall pay any service employee under such contract less than the wages and fringe benefits, including accrued wages and fringe benefits, and any prospective increases in wages and fringe benefits provided for in a collective-bargaining agreement as a result of arm's-length negotiations, to which such service employees would have been entitled if they were employed under the predecessor contract: Provided, That in any of the foregoing circumstances such obligations shall not apply if the Secretary finds after a hearing in accordance with regulations adopted by the Secretary that such wages and fringe benefits are substantially at variance with those which prevail for services of a character similar in the locality.
(d) Duration of contract
Subject to limitations in annual appropriation Acts but notwithstanding any other provision of law, contracts to which this chapter applies may, if authorized by the Secretary, be for any term of years not exceeding five, if each such contract provides for the periodic adjustment of wages and fringe benefits pursuant to future determinations, issued in the manner prescribed in
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Amendments
1972—Subsec. (b).
Subsecs. (c), (d).
Section Referred to in Other Sections
This section is referred to in
§354. List of violators; prohibition of contract award to firms appearing on list; actions to recover underpayments; payment of sums recovered
(a) The Comptroller General is directed to distribute a list to all agencies of the Government giving the names of persons or firms that the Federal agencies or the Secretary have found to have violated this chapter. Unless the Secretary otherwise recommends because of unusual circumstances, no contract of the United States shall be awarded to the persons or firms appearing on this list or to any firm, corporation, partnership, or association in which such persons or firms have a substantial interest until three years have elapsed from the date of publication of the list containing the name of such persons or firms. Where the Secretary does not otherwise recommend because of unusual circumstances, he shall, not later than ninety days after a hearing examiner has made a finding of a violation of this chapter, forward to the Comptroller General the name of the individual or firm found to have violated the provisions of this chapter.
(b) If the accrued payments withheld under the terms of the contract are insufficient to reimburse all service employees with respect to whom there has been a failure to pay the compensation required pursuant to this chapter, the United States may bring action against the contractor, subcontractor, or any sureties in any court of competent jurisdiction to recover the remaining amount of underpayments. Any sums thus recovered by the United States shall be held in the deposit fund and shall be paid, on order of the Secretary, directly to the underpaid employee or employees. Any sum not paid to an employee because of inability to do so within three years shall be covered into the Treasury of the United States as miscellaneous receipts.
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Amendments
1972—Subsec. (a).
Section Referred to in Other Sections
This section is referred to in
§355. Exclusion of fringe benefit payments in determining overtime pay
In determining any overtime pay to which such service employees are entitled under any Federal law, the regular or basic hourly rate of pay of such an employee shall not include any fringe benefit payments computed hereunder which are excluded from the regular rate under the Fair Labor Standards Act [
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References in Text
The Fair Labor Standards Act, referred to in text, is act June 25, 1938, ch. 676,
§356. Exemptions
This chapter shall not apply to—
(1) any contract of the United States or District of Columbia for construction, alteration and/or repair, including painting and decorating of public buildings or public works;
(2) any work required to be done in accordance with the provisions of the Walsh-Healey Public Contracts Act [
(3) any contract for the carriage of freight or personnel by vessel, airplane, bus, truck, express, railway line or oil or gas pipeline where published tariff rates are in effect;
(4) any contract for the furnishing of services by radio, telephone, telegraph, or cable companies, subject to the Communications Act of 1934 [
(5) any contract for public utility services, including electric light and power, water, steam, and gas;
(6) any employment contract providing for direct services to a Federal agency by an individual or individuals; and
(7) any contract with the United States Postal Service, the principal purpose of which is the operation of postal contract stations.
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References in Text
The Walsh-Healey Public Contracts Act, referred to in par. (2), probably means act June 30, 1936, ch. 881,
The Communications Act of 1934, as amended, referred to in par. (4), is act June 19, 1934, ch. 652,
Change of Name
In par. (7), "United States Postal Service" substituted for "Post Office Department" pursuant to
Section Referred to in Other Sections
This section is referred to in
§357. Definitions
For the purposes of this chapter—
(a) "Secretary" means Secretary of Labor.
(b) The term "service employee" means any person engaged in the performance of a contract entered into by the United States and not exempted under
(c) The term "compensation" means any of the payments or fringe benefits described in
(d) The term "United States" when used in a geographical sense shall include any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf lands as defined in the Outer Continental Shelf Lands Act, American Samoa, Guam, Wake Island, Eniwetok Atoll, Kwajalein Atoll, Johnston Island, and Canton Island, but shall not include any other territory under the jurisdiction of the United States or any United States base or possession within a foreign country.
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References in Text
The Outer Continental Shelf Lands Act, referred to in subsec. (d), is act Aug. 7, 1953, ch. 345,
Amendments
1976—Subsec. (b).
1973—Subsec. (d).
Effective Date of 1973 Amendment
Section 2 of
§358. Wage and fringe benefit determinations of Secretary
It is the intent of the Congress that determinations of minimum monetary wages and fringe benefits for the various classes of service employees under the provisions of paragraphs (1) and (2) of section 351 1 of this title should be made with respect to all contracts subject to this chapter, as soon as it is administratively feasible to do so. In any event, the Secretary shall make such determinations with respect to at least the following contracts subject to this chapter which are entered into during the applicable fiscal year:
(1) For the fiscal year ending June 30, 1973, all contracts under which more than twenty-five service employees are to be employed.
(2) For the fiscal year ending June 30, 1974, all contracts, under which more than twenty service employees are to be employed.
(3) For the fiscal year ending June 30, 1975, all contracts under which more than fifteen service employees are to be employed.
(4) For the fiscal year ending June 30, 1976, all contracts under which more than ten service employees are to be employed.
(5) On or after July 1, 1976, all contracts under which more than five service employees are to be employed.
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Amendments
1976—Par. (5).
Section Referred to in Other Sections
This section is referred to in