What is the Service Contract Act?

The Service Contract Act (SCA) is a federal law that applies to certain contracts entered into by the United States government for the acquisition of services. The law applies to contracts that are expected to exceed a certain dollar amount and are between private entities and the federal government. The purpose of this law is to promote fairness in employment and ensure that employees working on contracts for the federal government are paid fair wages and receive benefits that are equivalent to those of other workers in the same region. In Pennsylvania, the SCA applies to contracts that exceed $2,500 and are expected to last more than 30 days. The law requires employers to pay wages and benefits that are equal to those established by the Department of Labor or those that are professionally recognized in the area. There are various wage and benefit standards that the employer must meet, such as paying the prevailing minimum wage, providing overtime pay, and providing fringe benefits like vacation pay and health insurance. The SCA also requires that certain records be kept by the employer. These records include information about the work performed, wages paid, employee hours, and other important information about labor costs. By following the guidelines of the SCA, employers can ensure that their employees are being treated fairly, and that the federal government is getting its money’s worth.

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What is the Service Contract Act?

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