-CITE-
    41 USC CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS         01/03/2007

-EXPCITE-
    TITLE 41 - PUBLIC CONTRACTS
    CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-
               CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS           

-MISC1-
    Sec.                                                     
    351.        Required contract provisions; minimum wages.          
    352.        Violations.                                           
    353.        Law governing authority of Secretary.                 
    354.        List of violators; prohibition of contract award to
                 firms appearing on list; actions to recover
                 underpayments; payment of sums recovered.            
    355.        Exclusion of fringe benefit payments in determining
                 overtime pay.                                        
    356.        Exemptions.                                           
    357.        Definitions.                                          
    358.        Wage and fringe benefit determinations of Secretary.  

-End-



-CITE-
    41 USC Sec. 351                                             01/03/2007

-EXPCITE-
    TITLE 41 - PUBLIC CONTRACTS
    CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-
    Sec. 351. Required contract provisions; minimum wages

-STATUTE-
      (a) Every contract (and any bid specification therefor) entered
    into by the United States or the District of Columbia in excess of
    $2,500, except as provided in section 356 of this title, whether
    negotiated or advertised, the principal purpose of which is to
    furnish services in the United States through the use of service
    employees, shall contain the following:
        (1) A provision specifying the minimum monetary wages to be
      paid the various classes of service employees in the performance
      of the contract or any subcontract thereunder, as determined by
      the Secretary, or his authorized representative, in accordance
      with prevailing rates for such employees in the locality, or,
      where a collective-bargaining agreement covers any such service
      employees, in accordance with the rates for such employees
      provided for in such agreement, including prospective wage
      increases provided for in such agreement as a result of arm's
      length negotiations. In no case shall such wages be lower than
      the minimum specified in subsection (b) of this section.
        (2) A provision specifying the fringe benefits to be furnished
      in the various classes of service employees, engaged in the
      performance of the contract or any subcontract thereunder, as
      determined by the Secretary or his authorized representative to
      be prevailing for such employees in the locality, or, where a
      collective-bargaining agreement covers any such service
      employees, to be provided for in such agreement, including
      prospective fringe benefits increases provided for in such
      agreement as a result of arm's-length negotiations. Such fringe
      benefits shall include medical or hospital care, pensions on
      retirement or death, compensation for injuries or illness
      resulting from occupational activity, or insurance to provide any
      of the foregoing, unemployment benefits, life insurance,
      disability and sickness insurance, accident insurance, vacation
      and holiday pay, costs of apprenticeship or other similar
      programs and other bona fide fringe benefits not otherwise
      required by Federal, State, or local law to be provided by the
      contractor or subcontractor. The obligation under this
      subparagraph may be discharged by furnishing any equivalent
      combinations of fringe benefits or by making equivalent or
      differential payments in cash under rules and regulations
      established by the Secretary.
        (3) A provision that no part of the services covered by this
      chapter will be performed in buildings or surroundings or under
      working conditions, provided by or under the control or
      supervision of the contractor or any subcontractor, which are
      unsanitary or hazardous or dangerous to the health or safety of
      service employees engaged to furnish the services.
        (4) A provision that on the date a service employee commences
      work on a contract to which this chapter applies, the contractor
      or subcontractor will deliver to the employee a notice of the
      compensation required under paragraphs (1) and (2) of this
      subsection, on a form prepared by the Federal agency, or will
      post a notice of the required compensation in a prominent place
      at the worksite.
        (5) A statement of the rates that would be paid by the Federal
      agency to the various classes of service employees if section
      5341 or section 5332 of title 5 were applicable to them. The
      Secretary shall give due consideration to such rates in making
      the wage and fringe benefit determinations specified in this
      section.

      (b)(1) No contractor who enters into any contract with the
    Federal Government the principal purpose of which is to furnish
    services through the use of service employees and no subcontractor
    thereunder shall pay any of his employees engaged in performing
    work on such contracts less than the minimum wage specified under
    section 206(a)(1) of title 29.
      (2) The provisions of sections 352 to 354 of this title shall be
    applicable to violations of this subsection.

-SOURCE-
    (Pub. L. 89-286, Sec. 2, Oct. 22, 1965, 79 Stat. 1034; Pub. L. 92-
    473, Secs. 1, 2, Oct. 9, 1972, 86 Stat. 789; Pub. L. 94-489, Secs.
    1, 2, Oct. 13, 1976, 90 Stat. 2358.)


-MISC1-
                                AMENDMENTS                            
      1976 - Subsec. (a). Pub. L. 94-489, Sec. 1(a), struck out "as
    defined herein" after "use of service employees".
      Subsec. (a)(5). Pub. L. 94-489, Sec. 2, inserted "or section
    5332" after "section 5341".
      Subsec. (b)(1). Pub. L. 94-489, Sec. 1(b), struck out "as defined
    herein" after "use of service employees".
      1972 - Subsec. (a)(1). Pub. L. 92-473, Sec. 1(a), provided for
    minimum monetary wages to be paid service employees where
    collective-bargaining agreement covers any such service employees
    in accordance with the rates for such employees provided for in
    such agreement, including prospective wage increases provided for
    in such agreement as a result of arm's-length negotiations.
      Subsec. (a)(2). Pub. L. 92-473, Sec. 1(b), provided for fringe
    benefits to be furnished service employees where collective-
    bargaining agreement covers any such service employees, to be
    provided for in such agreement, including prospective fringe
    increases provided for in such agreement as a result of arm's-
    length negotiations.
      Subsec. (a)(5). Pub. L. 92-473, Sec. 2, added par. (5).

                              EFFECTIVE DATE                          
      Section 9 of Pub. L. 89-286 provided that: "This Act [enacting
    this chapter] shall apply to all contracts entered into pursuant to
    negotiations concluded or invitations for bids issued on or after
    ninety days from the date of enactment of this Act [Oct. 22,
    1965]."

                                SHORT TITLE                            
      Section 1 of Pub. L. 89-286 provided that: "This Act [enacting
    this chapter] may be cited as the 'Service Contract Act of 1965'."

-End-



-CITE-
    41 USC Sec. 352                                             01/03/2007

-EXPCITE-
    TITLE 41 - PUBLIC CONTRACTS
    CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-
    Sec. 352. Violations

-STATUTE-
    (a) Liability of responsible party; withholding payments due on
      contract; payment of underpaid employees from withheld payments
      Any violation of any of the contract stipulations required by
    section 351(a)(1) or (2) or of section 351(b) of this title shall
    render the party responsible therefor liable for a sum equal to the
    amount of any deductions, rebates, refunds, or underpayment of
    compensation due to any employee engaged in the performance of such
    contract. So much of the accrued payment due on the contract or any
    other contract between the same contractor and the Federal
    Government may be withheld as is necessary to pay such employees.
    Such withheld sums shall be held in a deposit fund. On order of the
    Secretary, any compensation which the head of the Federal agency or
    the Secretary has found to be due pursuant to this chapter shall be
    paid directly to the underpaid employees from any accrued payments
    withheld under this chapter.
    (b) Enforcement of section
      In accordance with regulations prescribed pursuant to section 353
    of this title, the Federal agency head or the Secretary is hereby
    authorized to carry out the provisions of this section.
    (c) Cancellation of contract; contracts for completion of original
      contract; liability of original contractor for additional cost
      In addition, when a violation is found of any contract
    stipulation, the contract is subject upon written notice to
    cancellation by the contracting agency. Whereupon, the United
    States may enter into other contracts or arrangements for the
    completion of the original contract, charging any additional cost
    to the original contractor.

-SOURCE-
    (Pub. L. 89-286, Sec. 3, Oct. 22, 1965, 79 Stat. 1035.)

-End-



-CITE-
    41 USC Sec. 353                                             01/03/2007

-EXPCITE-
    TITLE 41 - PUBLIC CONTRACTS
    CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-
    Sec. 353. Law governing authority of Secretary

-STATUTE-
    (a) Enforcement of chapter
      Sections 38 and 39 of this title shall govern the Secretary's
    authority to enforce this chapter, make rules, regulations, issue
    orders, hold hearings, and make decisions based upon findings of
    fact, and take other appropriate action hereunder.
    (b) Limitations and regulations allowing variations, tolerances,
      and exemptions
      The Secretary may provide such reasonable limitations and may
    make such rules and regulations allowing reasonable variation,
    tolerances, and exemptions to and from any or all provisions of
    this chapter (other than section 358 of this title), but only in
    special circumstances where he determines that such limitation,
    variation, tolerance, or exemption is necessary and proper in the
    public interest or to avoid the serious impairment of government
    business, and is in accord with the remedial purpose of this
    chapter to protect prevailing labor standards.
    (c) Predecessor contracts; employees' wages and fringe benefits
      No contractor or subcontractor under a contract, which succeeds a
    contract subject to this chapter and under which substantially the
    same services are furnished, shall pay any service employee under
    such contract less than the wages and fringe benefits, including
    accrued wages and fringe benefits, and any prospective increases in
    wages and fringe benefits provided for in a collective-bargaining
    agreement as a result of arm's-length negotiations, to which such
    service employees would have been entitled if they were employed
    under the predecessor contract: Provided, That in any of the
    foregoing circumstances such obligations shall not apply if the
    Secretary finds after a hearing in accordance with regulations
    adopted by the Secretary that such wages and fringe benefits are
    substantially at variance with those which prevail for services of
    a character similar in the locality.
    (d) Duration of contract
      Subject to limitations in annual appropriation Acts but
    notwithstanding any other provision of law, contracts to which this
    chapter applies may, if authorized by the Secretary, be for any
    term of years not exceeding five, if each such contract provides
    for the periodic adjustment of wages and fringe benefits pursuant
    to future determinations, issued in the manner prescribed in
    section 351 of this title no less often than once every two years
    during the term of the contract, covering the various classes of
    service employees.

-SOURCE-
    (Pub. L. 89-286, Sec. 4, Oct. 22, 1965, 79 Stat. 1035; Pub. L. 92-
    473, Sec. 3, Oct. 9, 1972, 86 Stat. 789.)


-MISC1-
                                AMENDMENTS                            
      1972 - Subsec. (b). Pub. L. 92-473, Sec. 3(a), excluded section
    358 of this title from being subject to Secretary's authority to
    provide limitations and to make regulations respecting application
    of provisions of this chapter, substituted "but only in special
    circumstances where he determines that such limitation, variation,
    tolerance, or exemption is necessary and proper" for "as he may
    find necessary and proper", and authorized administrative action in
    accord with the remedial purpose of this chapter to protect
    prevailing labor standards.
      Subsecs. (c), (d). Pub. L. 92-473, Sec. 3(b), added subsecs. (c)
    and (d).

-End-



-CITE-
    41 USC Sec. 354                                             01/03/2007

-EXPCITE-
    TITLE 41 - PUBLIC CONTRACTS
    CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-
    Sec. 354. List of violators; prohibition of contract award to firms
      appearing on list; actions to recover underpayments; payment of
      sums recovered

-STATUTE-
      (a) The Comptroller General is directed to distribute a list to
    all agencies of the Government giving the names of persons or firms
    that the Federal agencies or the Secretary have found to have
    violated this chapter. Unless the Secretary otherwise recommends
    because of unusual circumstances, no contract of the United States
    shall be awarded to the persons or firms appearing on this list or
    to any firm, corporation, partnership, or association in which such
    persons or firms have a substantial interest until three years have
    elapsed from the date of publication of the list containing the
    name of such persons or firms. Where the Secretary does not
    otherwise recommend because of unusual circumstances, he shall, not
    later than ninety days after a hearing examiner has made a finding
    of a violation of this chapter, forward to the Comptroller General
    the name of the individual or firm found to have violated the
    provisions of this chapter.
      (b) If the accrued payments withheld under the terms of the
    contract are insufficient to reimburse all service employees with
    respect to whom there has been a failure to pay the compensation
    required pursuant to this chapter, the United States may bring
    action against the contractor, subcontractor, or any sureties in
    any court of competent jurisdiction to recover the remaining amount
    of underpayments. Any sums thus recovered by the United States
    shall be held in the deposit fund and shall be paid, on order of
    the Secretary, directly to the underpaid employee or employees. Any
    sum not paid to an employee because of inability to do so within
    three years shall be covered into the Treasury of the United States
    as miscellaneous receipts.

-SOURCE-
    (Pub. L. 89-286, Sec. 5, Oct. 22, 1965, 79 Stat. 1035; Pub. L. 92-
    473, Sec. 4, Oct. 9, 1972, 86 Stat. 790.)


-MISC1-
                                AMENDMENTS                            
      1972 - Subsec. (a). Pub. L. 92-473 authorized award of contracts
    to violators because of unusual circumstances and required the
    Secretary to forward names of violators to Comptroller General
    within ninety days of hearing examiner's finding of a violation
    where the Secretary does not recommend awards because of unusual
    circumstances.

-End-



-CITE-
    41 USC Sec. 355                                             01/03/2007

-EXPCITE-
    TITLE 41 - PUBLIC CONTRACTS
    CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-
    Sec. 355. Exclusion of fringe benefit payments in determining
      overtime pay

-STATUTE-
      In determining any overtime pay to which such service employees
    are entitled under any Federal law, the regular or basic hourly
    rate of pay of such an employee shall not include any fringe
    benefit payments computed hereunder which are excluded from the
    regular rate under the Fair Labor Standards Act [29 U.S.C. 201 et
    seq.] by provisions of section 7(d) thereof [29 U.S.C. 207(d)].

-SOURCE-
    (Pub. L. 89-286, Sec. 6, Oct. 22, 1965, 79 Stat. 1035.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Fair Labor Standards Act, referred to in text, is act June
    25, 1938, ch. 676, 52 Stat. 1060, as amended, known as the Fair
    Labor Standards Act of 1938, which is classified generally to
    chapter 8 (Sec. 201 et seq.) of Title 29, Labor. For complete
    classification of this Act to the Code, see section 201 of Title 29
    and Tables.

-End-



-CITE-
    41 USC Sec. 356                                             01/03/2007

-EXPCITE-
    TITLE 41 - PUBLIC CONTRACTS
    CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-
    Sec. 356. Exemptions

-STATUTE-
      This chapter shall not apply to - 
        (1) any contract of the United States or District of Columbia
      for construction, alteration and/or repair, including painting
      and decorating of public buildings or public works;
        (2) any work required to be done in accordance with the
      provisions of the Walsh-Healey Public Contracts Act [41 U.S.C. 35
      et seq.];
        (3) any contract for the carriage of freight or personnel by
      vessel, airplane, bus, truck, express, railway line or oil or gas
      pipeline where published tariff rates are in effect;
        (4) any contract for the furnishing of services by radio,
      telephone, telegraph, or cable companies, subject to the
      Communications Act of 1934 [47 U.S.C. 151 et seq.];
        (5) any contract for public utility services, including
      electric light and power, water, steam, and gas;
        (6) any employment contract providing for direct services to a
      Federal agency by an individual or individuals; and
        (7) any contract with the United States Postal Service, the
      principal purpose of which is the operation of postal contract
      stations.

-SOURCE-
    (Pub. L. 89-286, Sec. 7, Oct. 22, 1965, 79 Stat. 1035; Pub. L. 91-
    375, Secs. 4(a), 6(o), Aug. 12, 1970, 84 Stat. 773, 783.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Walsh-Healey Public Contracts Act, referred to in par. (2),
    probably means act June 30, 1936, ch. 881, 49 Stat. 2036, as
    amended, known as the Walsh-Healey Act, which is classified
    generally to sections 35 to 45 of this title. For complete
    classification of this Act to the Code, see Short Title note under
    section 35 of this title and Tables. See also section 262 of Title
    29, Labor.
      The Communications Act of 1934, as amended, referred to in par.
    (4), is act June 19, 1934, ch. 652, 48 Stat. 1064, as amended,
    which is classified principally to chapter 5 (Sec. 151 et seq.) of
    Title 47, Telegraphs, Telephones, and Radiotelegraphs. For complete
    classification of this Act to the Code, see section 609 of Title 47
    and Tables.

-CHANGE-
                              CHANGE OF NAME                          
      In par. (7), "United States Postal Service" substituted for "Post
    Office Department" pursuant to Pub. L. 91-375, Secs. 4(a), 6(o),
    Aug. 12, 1970, 84 Stat. 773, 783, which are set out as notes
    preceding section 101 of Title 39, Postal Service, and under
    section 201 of Title 39, respectively, which abolished Post Office
    Department, transferred its functions to United States Postal
    Service, and provided that references in other laws to Post Office
    Department shall be considered a reference to United States Postal
    Service.

-End-



-CITE-
    41 USC Sec. 357                                             01/03/2007

-EXPCITE-
    TITLE 41 - PUBLIC CONTRACTS
    CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-
    Sec. 357. Definitions

-STATUTE-
      For the purposes of this chapter - 
        (a) "Secretary" means Secretary of Labor.
        (b) The term "service employee" means any person engaged in the
      performance of a contract entered into by the United States and
      not exempted under section 356 of this title, whether negotiated
      or advertised, the principal purpose of which is to furnish
      services in the United States (other than any person employed in
      a bona fide executive, administrative, or professional capacity,
      as those terms are defined in part 541 of title 29, Code of
      Federal Regulations, as of July 30, 1976, and any subsequent
      revision of those regulations); and shall include all such
      persons regardless of any contractual relationship that may be
      alleged to exist between a contractor or subcontractor and such
      persons.
        (c) The term "compensation" means any of the payments or fringe
      benefits described in section 351 of this title.
        (d) The term "United States" when used in a geographical sense
      shall include any State of the United States, the District of
      Columbia, Puerto Rico, the Virgin Islands, Outer Continental
      Shelf lands as defined in the Outer Continental Shelf Lands Act,
      American Samoa, Guam, Wake Island, Eniwetok Atoll, Kwajalein
      Atoll, Johnston Island, and Canton Island, but shall not include
      any other territory under the jurisdiction of the United States
      or any United States base or possession within a foreign country.

-SOURCE-
    (Pub. L. 89-286, Sec. 8, Oct. 22, 1965, 79 Stat. 1036; Pub. L. 93-
    57, Sec. 1, July 6, 1973, 87 Stat. 140; Pub. L. 94-489, Sec. 3,
    Oct. 13, 1976, 90 Stat. 2358.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Outer Continental Shelf Lands Act, referred to in subsec.
    (d), is act Aug. 7, 1953, ch. 345, 67 Stat. 462, as amended, which
    is classified generally to subchapter III (Sec. 1331 et seq.) of
    chapter 29 of Title 43, Public Lands. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1331 of Title 43 and Tables.


-MISC1-
                                AMENDMENTS                            
      1976 - Subsec. (b). Pub. L. 94-489 substituted provision defining
    service employees to include all employees, but excluding bona fide
    executive, administrative, and professional employees, for
    provision defining service employees as guards, watchmen, any
    person engaged in a recognized trade or craft, or in unskilled,
    semiskilled, or skilled manual labor occupations; and any other
    employee including a foreman or supervisor in a position having
    trade, craft, or laboring experience as the paramount requirement.
      1973 - Subsec. (d). Pub. L. 93-57 defined "United States" to
    include Canton Island.

                     EFFECTIVE DATE OF 1973 AMENDMENT                 
      Section 2 of Pub. L. 93-57 provided that: "The amendment made
    hereby [amending this section] shall be effective with respect to
    all contracts entered into at any time after the date of enactment
    [July 6, 1973]."

-End-



-CITE-
    41 USC Sec. 358                                             01/03/2007

-EXPCITE-
    TITLE 41 - PUBLIC CONTRACTS
    CHAPTER 6 - SERVICE CONTRACT LABOR STANDARDS

-HEAD-
    Sec. 358. Wage and fringe benefit determinations of Secretary

-STATUTE-
      It is the intent of the Congress that determinations of minimum
    monetary wages and fringe benefits for the various classes of
    service employees under the provisions of paragraphs (1) and (2) of
    section 351 (!1) of this title should be made with respect to all
    contracts subject to this chapter, as soon as it is
    administratively feasible to do so. In any event, the Secretary
    shall make such determinations with respect to at least the
    following contracts subject to this chapter which are entered into
    during the applicable fiscal year:

        (1) For the fiscal year ending June 30, 1973, all contracts
      under which more than twenty-five service employees are to be
      employed.
        (2) For the fiscal year ending June 30, 1974, all contracts,
      under which more than twenty service employees are to be
      employed.
        (3) For the fiscal year ending June 30, 1975, all contracts
      under which more than fifteen service employees are to be
      employed.
        (4) For the fiscal year ending June 30, 1976, all contracts
      under which more than ten service employees are to be employed.
        (5) On or after July 1, 1976, all contracts under which more
      than five service employees are to be employed.

-SOURCE-
    (Pub. L. 89-286, Sec. 10, as added Pub. L. 92-473, Sec. 5, Oct. 9,
    1972, 86 Stat. 790; amended Pub. L. 94-273, Sec. 29, Apr. 21, 1976,
    90 Stat. 380.)


-MISC1-
                                AMENDMENTS                            
      1976 - Par. (5). Pub. L. 94-273 substituted "On or after July 1,
    1976" for "For the fiscal year ending June 30, 1977, and for each
    fiscal year thereafter".

-FOOTNOTE-
    (!1) So in original. Probably should be section "351(a)".


-End-