The Service Contract Act Timeline

The Service Contract Act (SCA) is a federal law enacted in the United States to ensure that workers on contracts with the federal government receive fair wages and benefits. Here's a brief history highlighting key dates:

• 1936: The Service Contract Act finds its roots in the Davis-Bacon Act of 1931, which required contractors on federally funded construction projects to pay prevailing wages and benefits. In 1936, the Walsh-Healey Public Contracts Act extended similar protections to workers on contracts for the manufacturing or furnishing of goods to the federal government.
• 1965: The Service Contract Act as we know it today was enacted by Congress as part of the McNamara-O'Hara Service Contract Act of 1965. It extended prevailing wage protections to workers on service contracts with the federal government. This act aimed to prevent contractors from undercutting wages and benefits to win government contracts, thereby maintaining fair labor standards.
• 1972: Significant amendments were made to the Service Contract Act in 1972. These amendments expanded coverage to include service contracts exceeding $2,500 and added provisions related to safety and health standards, as well as equal employment opportunity requirements.
• 1984: Further amendments in 1984 adjusted the coverage thresholds for inflation and introduced the requirement for contractors to provide wage and fringe benefit statements to employees performing under covered contracts.
• 2004: The Department of Labor (DOL) issued revised regulations in 2004, which updated and clarified various provisions of the Service Contract Act. These revisions aimed to streamline compliance and enforcement processes.
• 2014: President Barack Obama signed Executive Order 13658 in February 2014, which raised the minimum wage for workers on federal service and construction contracts to $10.10 per hour. This executive order applied to contracts issued after January 1, 2015, and subsequent years adjusted the minimum wage based on inflation.
• 2020: The Trump administration issued Executive Order 13897, titled "Improving Federal Contractor Operations by Revoking Executive Order 13495," which revoked Obama's Executive Order 13658. This move effectively rescinded the minimum wage increase for federal contractors.
• 2021: The Biden administration issued Executive Order 14026 in April 2021, titled "Increasing the Minimum Wage for Federal Contractors." This order reinstated and expanded the minimum wage for federal contractors, setting it at $15 per hour and indexing it to inflation beginning January 1, 2022.

Throughout its history, the Service Contract Act has undergone several changes and amendments aimed at ensuring that workers on federal service contracts receive fair compensation and benefits. It continues to play a crucial role in maintaining labor standards and promoting economic security for workers engaged in government contracts.

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