Overview
This section defines the scope of the Service Contract Labor Standards (formerly the Service Contract Act), identifying which categories of service employees are entitled to fair compensation protections under federal law.
Key Rules
- Legal Codification: The Service Contract Act of 1965 is currently codified at 41 U.S.C. chapter 67.
- Covered Workers: The standards apply to blue-collar service workers and certain white-collar service workers.
- Specific Exemptions: The Act does not apply to "bona fide executive, administrative, or professional employees" (often referred to as EAP exemptions).
- Legislative Intent: The primary purpose is to ensure that contractors provide fair compensation to service employees working on government contracts.
Practical Implications
- Contractors must perform accurate labor mapping to distinguish between "service employees" (subject to Department of Labor wage determinations) and exempt professional staff.
- Misclassification of employees can lead to significant financial liability, including back-pay requirements and potential debarment.