29 CFR 4.147-4.153

Service Contract Act

Title 29, Code of Federal Regulations, Part 4
Labor Standards for Federal Service Contracts

(29CFR 4.147-4.153)

29 CFR 4.147 - 4.149 (Reserved)

29 CFR 4.150 - Employee coverage, generally.

The Act, in section 2(b), makes it clear that its provisions apply
generally to all service employees engaged in performing work on a
covered contract entered into by the contractor with the Federal
Government, regardless of whether they are the contractor's employees or those of any subcontractor under such contract. All service employees who, on or after the date of award, are engaged in working on or in connection with the contract, either in performing the specific services called for by its terms or in performing other duties necessary to the performance of the contract, are thus subject to the Act unless a specific exemption (see Secs. 4.115 et seq.) is applicable. All such employees must be paid wages at a rate not less than the minimum wage specified under section 6(a)(1) of the Fair Labor Standards Act (29 U.S.C. 206(a)(1)), as amended. Payment of a higher minimum monetary wage and the furnishing of fringe benefits may be required under the contract, pursuant to the provisions of sections 2 (a)(1), (2), and 4(c) of the Act.

29 CFR 4.151 - Employees covered by provisions of section 2(a).

The provisions of sections 2(a) and 4(c) of the Act prescribe labor
standards requirements applicable, except as otherwise specifically
provided, to every contract in excess of $2,500 which is entered into by
the United States or the District of Columbia for the principal purpose
of furnishing services in the United States through the use of service
employees. These provisions apply to all service employees engaged in the performance of such a contract or any subcontract thereunder. The Act, in section 8(b) defines the term service employee. The generalscope of the definition is considered in Sec. 4.113(b) of this subpart.

29 CFR 4.152 - Employees subject to prevailing compensation provisions of sections 2(a)(1) and (2) and 4(c).

(a) Under sections 2(a)(1) and (2) and 4(c) of the Act, minimum
monetary wages and fringe benefits to be paid or furnished the various
classes of service employees performing such contract work are
determined by the Secretary of Labor or his authorized representative in accordance with prevailing rates and fringe benefits for such employees in the locality or in accordance with the rates contained in a
predecessor contractor's collective bargaining agreement, as
appropriate, and are required to be specified in such contracts and
subcontracts thereunder. All service employees of the classes who
actually perform the specific services called for by the contract (e.g.,
janitors performing on a contract for office cleaning; stenographers
performing on a contract for stenographic reporting) are covered by the
provisions specifying such minimum monetary wages and fringe benefits for such classes of service employees and must be paid not less than the applicable rate established for the classification(s) of work performed. Pursuant to section4.6(b)(2), conforming procedures are required to be observed for all such classes of service employees not listed in the wage determination incorporated in the contract.

(b) The duties which an employee actually performs govern the
classification and the rate of pay to which the employee is entitled
under the applicable wage determination. Some job classifications listed in an applicable wage determination are descriptive by title and have commonly understood meanings (e.g., janitors, security guards, pilots, etc.). In such situations, detailed position descriptions may not be included in the wage determination. However, in cases where additional descriptive information is needed to inform users of the scope of duties included in the classification, the wage determination will generally contain detailed position descriptions based on the data source relied upon for the issuance of the wage determination.

(c)(1) Some wage determinations will list a series of classes within
a job classification family, e.g., Computer Operators, Class A, B, and
C, or Electronic Technicians, Class A, B, and C, or Clerk Typist, Class
A and B. Generally, the lowest level listed for a job classification
family is considered to be the entry level and establishment of a lower
level through conformance (Sec. 4.6(b)(2)) is not permissible. Further,
trainee classifications cannot be conformed. Helpers in skilled
maintenance trades (e.g., electricians, machinists, automobile
mechanics, etc.) whose duties constitute, in fact, separate and distinct
jobs, may also be used if listed on the wage determination, but cannot
be conformed. Conformance may not be used to artificially split or
subdivide classifications listed in the wage determination. However,
conforming procedures may be used if the work which an employee performs under the contract is not within the scope of any classification listed on the wage determination, regardless of job title.

(2) Subminimum rates for apprentices, student learners, and
handicapped workers are permissible under the conditions discussed in Sec. 4.6 (o) and (p).

29 CFR 4.153 - Inapplicability of prevailing compensation provisions to some employees.

There may be employees used by a contractor or subcontractor in
performing a service contract in excess of $2,500 which is subject to
the Act, whose services, although necessary to the performance of the
contract, are not subject to minimum monetary wage or fringe benefit
provisions contained in the contract pursuant to section 2(a) because
such employees are not directly engaged in performing the specified
contract services. An example might be a laundry contractor's billing
clerk performing billing work with respect to the items laundered. In
all such situations, the employees who are necessary to the performance of the contract but not directly engaged in the performance of the specified contract services, are nevertheless subject to the minimum wage provision of section 2(b) (see Sec. 4.150) requiring payment of not less than the minimum wage specified under section 6(a)(1) of the Fair Labor Standards Act to all employees working on a covered contract, unless specifically exempt.

However, in situations where minimum monetary wages and fringe benefits for a particular class or classes of service employees actually performing the services called for by the contract have not been specified in the contract because the wage and fringe benefit determination applicable to the contract has been made only for other classes of service employees who will perform the contract work, the employer will be required to pay the monetary wages and fringe benefits which may be specified for such classes of employees pursuant to the conformance procedures provided in Sec. 4.6(b).