Service
Contract Act
Title 29, Code of Federal Regulations,
Part 4
Labor Standards for Federal Service Contracts
29 CFR 4.105 - The Act
as amended.
(a) The provisions of the
Act (see Secs. 4.102-4.103) were amended,
effective October 9, 1972, by Public Law 92-473, signed into law by
the
President on that date. By virtue of amendments made to paragraphs (1)
and (2) of section 2(a) and the addition to section 4 of a new subsection
(c), the compensation standards of the Act (see Secs. 4.159-4.179) were
revised to impose on successor contractors certain requirements (see
Sec. 4.1b) with respect to payment of wage rates and fringe benefits
based on those agreed upon for substantially the same services in the
same locality in collective bargaining agreements entered into by their
predecessor contractors (unless such agreed compensation is substantially
at variance with that locally prevailing or the agreement was not negotiated
at arm's length).
The Secretary of Labor is
to give effect to the provisions of such collective bargaining agreements
in his wage determinations under section 2 of the Act. A new paragraph
(5) added to section 2(a) of the Act requires a statement in the government
service contract of the rates that would be paid by the contracting
agency in the event of its direct employment of those
classes of service employees to be employed on the contract work who,
if
directly employed by the agency, would receive wages determined as
provided in 5 U.S.C. 5341. The Secretary of Labor is directed to give
due consideration to such rates in determining prevailing monetary wages
and fringe benefits under the Act's provisions. Other provisions of
the
1972 amendments include the addition of a new section 10 to the Act
to
insure that wage determinations are issued by the Secretary for
substantially all service contracts subject to section 2(a) of the Act
at the earliest administratively feasible time; an amendment to section
4(b) of the Act to provide, in addition to the conditions previously
specified for issuance of administrative limitations, variations, tolerances,
and exemptions (see Sec. 4.123), that administrative action in this
regard shall be taken only in special circumstances where the Secretary
determines that it is in accord with the remedial purpose of the Act
to protect prevailing labor standards; and a new subsection (d) added
to section 4 of the Act providing for the award of service contracts
for terms not more than 5 years with provision for periodic adjustment
of minimum wage rates and fringe benefits payable thereunder by the
issuance of wage determinations bythe Secretary of Labor during the
term of the contract. A further amendment to section 5(a) of the Act
requires the names of contractors found to have violated the Act to
be submitted for the debarment list (see Sec. 4.188) not later than
90 days after the hearing examiner's finding of violation unless the
Secretary recommends relief, and
provides that such recommendations shall be made only because of unusual
circumstances.
(b) The provisions of the
Act were amended by Public Law 93-57, 87
Stat. 140, effective July 6, 1973, to extend the Act's coverage to Canton
Island.
(c) The provisions of the
Act were amended by Public Law 94-489, 90
Stat. 2358, approved October 13, 1976, to extend the Act's coverage
to
white collar workers. Accordingly, the minimum wage protection of the
Act now extends to all workers, both blue collar and white collar, other
than persons employed in a bona fide executive, administrative, or
professional capacity as those terms are used in the Fair Labor Standards
Act and in part 541 of title 29. Public Law 94-489 accomplished this
change by adding to section 2(a)(5) of the Act a reference to 5 U.S.C.
5332, which deals with white collar workers, and by amending the definition
of service contract employee in section 8(b) of the Act.
(d) Included in this part
4 and in parts 6 and 8 of this subtitle are provisions to give effect
to the amendments mentioned in this section.