-CITE-

41 USC CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-

CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-MISC1-

Sec.

351. Required contract provisions; minimum wages.

352. Violations.

(a) Liability of responsible party; withholding

payments due on contract; payment of underpaid

employees from withheld payments.

(b) Enforcement of section.

(c) Cancellation of contract; contracts for

completion of original contract; liability of

original contractor for additional cost.

353. Law governing authority of Secretary.

(a) Enforcement of chapter.

(b) Limitations and regulations allowing

variations, tolerances, and exemptions.

(c) Predecessor contracts; employees' wages and

fringe benefits.

(d) Duration of contract.

354. List of violators; prohibition of contract award to

firms appearing on list; actions to recover

underpayments; payment of sums recovered.

355. Exclusion of fringe benefit payments in determining

overtime pay.

356. Exemptions.

357. Definitions.

358. Wage and fringe benefit determinations of Secretary.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 25 section 450j; title 29

sections 206, 653; title 39 section 410.

-End-

-CITE-

41 USC Sec. 351 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-

Sec. 351. Required contract provisions; minimum wages

-STATUTE-

(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 section 356 of this title, whether

negotiated or advertised, the principal purpose of which is to

furnish services in the United States through the use of service

employees, shall contain the following:

(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 section 5332 of title 5 were applicable to them. The

Secretary shall give due consideration to such rates in making

the wage and fringe benefit determinations specified in this

section.

(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

section 206(a)(1) of title 29.

(2) The provisions of sections 352 to 354 of this title shall be

applicable to violations of this subsection.

-SOURCE-

(Pub. L. 89-286, Sec. 2, Oct. 22, 1965, 79 Stat. 1034; Pub. L.

92-473, Secs. 1, 2, Oct. 9, 1972, 86 Stat. 789; Pub. L. 94-489,

Secs. 1, 2, Oct. 13, 1976, 90 Stat. 2358.)

-MISC1-

AMENDMENTS

1976 - Subsec. (a). Pub. L. 94-489, Sec. 1(a), struck out "as

defined herein" after "use of service employees".

Subsec. (a)(5). Pub. L. 94-489, Sec. 2, inserted "or section

5332" after "section 5341".

Subsec. (b)(1). Pub. L. 94-489, Sec. 1(b), struck out "as defined

herein" after "use of service employees".

1972 - Subsec. (a)(1). Pub. L. 92-473, Sec. 1(a), provided for

minimum monetary wages to be paid service employees where

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.

Subsec. (a)(2). Pub. L. 92-473, Sec. 1(b), provided for fringe

benefits to be furnished service employees where

collective-bargaining agreement covers any such service employees,

to be provided for in such agreement, including prospective fringe

increases provided for in such agreement as a result of

arm's-length negotiations.

Subsec. (a)(5). Pub. L. 92-473, Sec. 2, added par. (5).

EFFECTIVE DATE

Section 9 of Pub. L. 89-286 provided that: "This Act [enacting

this chapter] shall apply to all contracts entered into pursuant to

negotiations concluded or invitations for bids issued on or after

ninety days from the date of enactment of this Act [Oct. 22,

1965]."

SHORT TITLE

Section 1 of Pub. L. 89-286 provided that: "This Act [enacting

this chapter] may be cited as the 'Service Contract Act of 1965'."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 352, 353, 357, 358 of

this title; title 38 section 1720.

-End-

-CITE-

41 USC Sec. 352 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-

Sec. 352. Violations

-STATUTE-

(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 section 351(b) of this title shall

render the party responsible therefor liable for a sum equal to the

amount of any deductions, rebates, refunds, or underpayment of

compensation due to any employee engaged in the performance of such

contract. So much of the accrued payment due on the contract or any

other contract between the same contractor and the Federal

Government may be withheld as is necessary to pay such employees.

Such withheld sums shall be held in a deposit fund. On order of the

Secretary, any compensation which the head of the Federal agency or

the Secretary has found to be due pursuant to this chapter shall be

paid directly to the underpaid employees from any accrued payments

withheld under this chapter.

(b) Enforcement of section

In accordance with regulations prescribed pursuant to section 353

of this title, the Federal agency head or the Secretary is hereby

authorized to carry out the provisions of this section.

(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.

-SOURCE-

(Pub. L. 89-286, Sec. 3, Oct. 22, 1965, 79 Stat. 1035.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 351 of this title.

-End-

-CITE-

41 USC Sec. 353 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-

Sec. 353. Law governing authority of Secretary

-STATUTE-

(a) Enforcement of chapter

Sections 38 and 39 of this title shall govern the Secretary's

authority to enforce this chapter, make rules, regulations, issue

orders, hold hearings, and make decisions based upon findings of

fact, and take other appropriate action hereunder.

(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 section 358 of this title), but only in

special circumstances where he determines that such limitation,

variation, tolerance, or exemption is necessary and proper in the

public interest or to avoid the serious impairment of government

business, and is in accord with the remedial purpose of this

chapter to protect prevailing labor standards.

(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

section 351 of this title no less often than once every two years

during the term of the contract, covering the various classes of

service employees.

-SOURCE-

(Pub. L. 89-286, Sec. 4, Oct. 22, 1965, 79 Stat. 1035; Pub. L.

92-473, Sec. 3, Oct. 9, 1972, 86 Stat. 789.)

-MISC1-

AMENDMENTS

1972 - Subsec. (b). Pub. L. 92-473, Sec. 3(a), excluded section

358 of this title from being subject to Secretary's authority to

provide limitations and to make regulations respecting application

of provisions of this chapter, substituted "but only in special

circumstances where he determines that such limitation, variation,

tolerance, or exemption is necessary and proper" for "as he may

find necessary and proper", and authorized administrative action in

accord with the remedial purpose of this chapter to protect

prevailing labor standards.

Subsecs. (c), (d). Pub. L. 92-473, Sec. 3(b), added subsecs. (c)

and (d).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 351, 352 of this title.

-End-

-CITE-

41 USC Sec. 354 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-

Sec. 354. List of violators; prohibition of contract award to firms

appearing on list; actions to recover underpayments; payment of

sums recovered

-STATUTE-

(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.

-SOURCE-

(Pub. L. 89-286, Sec. 5, Oct. 22, 1965, 79 Stat. 1035; Pub. L.

92-473, Sec. 4, Oct. 9, 1972, 86 Stat. 790.)

-MISC1-

AMENDMENTS

1972 - Subsec. (a). Pub. L. 92-473 authorized award of contracts

to violators because of unusual circumstances and required the

Secretary to forward names of violators to Comptroller General

within ninety days of hearing examiner's finding of a violation

where the Secretary does not recommend awards because of unusual

circumstances.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 351 of this title.

-End-

-CITE-

41 USC Sec. 355 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-

Sec. 355. Exclusion of fringe benefit payments in determining

overtime pay

-STATUTE-

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 [29 U.S.C. 201 et

seq.] by provisions of section 7(d) thereof [29 U.S.C. 207(d)].

-SOURCE-

(Pub. L. 89-286, Sec. 6, Oct. 22, 1965, 79 Stat. 1035.)

-REFTEXT-

REFERENCES IN TEXT

The Fair Labor Standards Act, referred to in text, is act June

25, 1938, ch. 676, 52 Stat. 1060, as amended, known as the Fair

Labor Standards Act of 1938, which is classified generally to

chapter 8 (Sec. 201 et seq.) of Title 29, Labor. For complete

classification of this Act to the Code, see section 201 of Title 29

and Tables.

-End-

-CITE-

41 USC Sec. 356 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-

Sec. 356. Exemptions

-STATUTE-

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 [41 U.S.C. 35

et seq.];

(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 [47 U.S.C. 151 et seq.];

(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.

-SOURCE-

(Pub. L. 89-286, Sec. 7, Oct. 22, 1965, 79 Stat. 1035; Pub. L.

91-375, Secs. 4(a), 6(o), Aug. 12, 1970, 84 Stat. 773, 783.)

-REFTEXT-

REFERENCES IN TEXT

The Walsh-Healey Public Contracts Act, referred to in par. (2),

probably means act June 30, 1936, ch. 881, 49 Stat. 2036, as

amended, known as the Walsh-Healey Act, which is classified

generally to sections 35 to 45 of this title. For complete

classification of this Act to the Code, see Short Title note under

section 35 of this title and Tables. See also section 262 of Title

29, Labor.

The Communications Act of 1934, as amended, referred to in par.

(4), is act June 19, 1934, ch. 652, 48 Stat. 1064, as amended,

which is classified principally to chapter 5 (Sec. 151 et seq.) of

Title 47, Telegraphs, Telephones, and Radiotelegraphs. For complete

classification of this Act to the Code, see section 609 of Title 47

and Tables.

-CHANGE-

CHANGE OF NAME

In par. (7), "United States Postal Service" substituted for "Post

Office Department" pursuant to Pub. L. 91-375, Secs. 4(a), 6(o),

Aug. 12, 1970, 84 Stat. 773, 783, which are set out as notes

preceding section 101 of Title 39, Postal Service, and under

section 201 of Title 39, respectively, which abolished Post Office

Department, transferred its functions to United States Postal

Service, and provided that references in other laws to Post Office

Department shall be considered a reference to United States Postal

Service.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 351, 357 of this title.

-End-

-CITE-

41 USC Sec. 357 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-

Sec. 357. Definitions

-STATUTE-

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 section 356 of this title, whether negotiated

or advertised, the principal purpose of which is to furnish

services in the United States (other than any person employed in

a bona fide executive, administrative, or professional capacity,

as those terms are defined in part 541 of title 29, Code of

Federal Regulations, as of July 30, 1976, and any subsequent

revision of those regulations); and shall include all such

persons regardless of any contractual relationship that may be

alleged to exist between a contractor or subcontractor and such

persons.

(c) The term "compensation" means any of the payments or fringe

benefits described in section 351 of this title.

(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.

-SOURCE-

(Pub. L. 89-286, Sec. 8, Oct. 22, 1965, 79 Stat. 1036; Pub. L.

93-57, Sec. 1, July 6, 1973, 87 Stat. 140; Pub. L. 94-489, Sec. 3,

Oct. 13, 1976, 90 Stat. 2358.)

-REFTEXT-

REFERENCES IN TEXT

The Outer Continental Shelf Lands Act, referred to in subsec.

(d), is act Aug. 7, 1953, ch. 345, 67 Stat. 462, as amended, which

is classified generally to subchapter III (Sec. 1331 et seq.) of

chapter 29 of Title 43, Public Lands. For complete classification

of this Act to the Code, see Short Title note set out under section

1331 of Title 43 and Tables.

-MISC1-

AMENDMENTS

1976 - Subsec. (b). Pub. L. 94-489 substituted provision defining

service employees to include all employees, but excluding bona fide

executive, administrative, and professional employees, for

provision defining service employees as guards, watchmen, any

person engaged in a recognized trade or craft, or in unskilled,

semiskilled, or skilled manual labor occupations; and any other

employee including a foreman or supervisor in a position having

trade, craft, or laboring experience as the paramount requirement.

1973 - Subsec. (d). Pub. L. 93-57 defined "United States" to

include Canton Island.

EFFECTIVE DATE OF 1973 AMENDMENT

Section 2 of Pub. L. 93-57 provided that: "The amendment made

hereby [amending this section] shall be effective with respect to

all contracts entered into at any time after the date of enactment

[July 6, 1973]."

-End-

-CITE-

41 USC Sec. 358 01/06/03

-EXPCITE-

TITLE 41 - PUBLIC CONTRACTS

CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-

Sec. 358. Wage and fringe benefit determinations of Secretary

-STATUTE-

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.

-SOURCE-

(Pub. L. 89-286, Sec. 10, as added Pub. L. 92-473, Sec. 5, Oct. 9,

1972, 86 Stat. 790; amended Pub. L. 94-273, Sec. 29, Apr. 21, 1976,

90 Stat. 380.)

-MISC1-

AMENDMENTS

1976 - Par. (5). Pub. L. 94-273 substituted "On or after July 1,

1976" for "For the fiscal year ending June 30, 1977, and for each

fiscal year thereafter".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 353 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be section "351(a)".

-End-