LATEST SERVICE CONTRACT ACT PROTEST SHOULD LEAD TO CONTRACTOR REVIEWS
A coalition of federal labor groups filed a complaint with the Department of Labor last week claiming that multiple federal contractors aren’t following the Services Contract Act. Although the complaint here dealt mainly with bus drivers, janitors and groundskeepers, the action should serve as a trigger for all providers of services to the government to take a look at their own SCA compliance. Many providers of services to the government have no idea what the Services Contract Act is or that it actually applies to their contracts. Hourly wage or “non-professional” services are usually covered by the SCA. The Act requires contractors to pay minimum wages and benefits based on a regionalized scale maintained by the Department of Labor. If your firm provides help desk services in Urbaba, IL, for example, the SCA has a rate for that. SCA compliance, of course, isn’t as simple as following a chart. Companies assume that because “John” is an exempt employee on today’s project, he’ll be exempt on the one next month. SCA coverage, however, depends on how “John” is used. If he’s a Systems Engineer I today, but an On-Site Tech Support IV next month, John could then be covered. If your firm isn’t sure about whether the SCA applies to your government contracts, its past time for a review. As with any other contract term, ignorance is no excuse. Make sure you do a review of your contracts so you know where you stand.