What is the Service Contract Act?

The Service Contract Act (SCA) is a law that requires certain employers in California to pay their service employees a minimum wage and to provide them with health and welfare benefits, if any. It applies to workers who have their own business, contract with others to provide services, or are employed by a service contractor. The purpose of the law is to ensure that service employees are paid fairly and to provide them with benefits that are designed to help them and their families. Under the SCA, the minimum wage for services employees is equal to or higher than the state minimum wage, and they must be provided with health and welfare benefits if the employer pays more than a certain amount for their services. The benefits may include vacation, sick pay, and healthcare. In California, the law applies to employers with more than $15,000 in annual receipts from service contracts. It does not apply to domestic service employees, such as household employees or farm workers. The law also protects service employees from discrimination and requires employers to post a notice in the workplace detailing the requirements of the SCA. The California Department of Industrial Relations enforces the SCA and investigates complaints related to the law. Employers who violate the SCA can face civil penalties, including back wages and damages.

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What is the Service Contract Act?

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