147 
(b) JUDICIAL REVIEW.—An interested person has the right of judicial re-
view of any legal question relating to interpretation of the terms ‘‘regular 
dealer’’ and ‘‘manufacturer’’ as defined pursuant to subsection (a). 
§ 6511. Effect on other law 
This chapter may not be construed to modify or amend the following pro-
visions: 
(1) Chapter 83 of this title. 
(2) Sections 3141 to 3144, 3146, and 3147 of title 40. 
(3) Chapter 307 of title 18. 
CHAPTER 67—SERVICE CONTRACT LABOR STANDARDS 
Sec. 
6701.
Definitions. 
6702.
Contracts to which this chapter applies. 
6703.
Required contract terms. 
6704.
Limitation on minimum wage. 
6705.
Violations. 
6706.
Three-year prohibition on new contracts in case of violation. 
6707.
Enforcement and administration of chapter. 
§ 6701. Definitions 
In this chapter: 
(1) COMPENSATION.—The term ‘‘compensation’’ means any of the 
payments or fringe benefits described in section 6703 of this title. 
(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of 
Labor. 
(3) SERVICE EMPLOYEE.—The term ‘‘service employee’’— 
(A) means an individual engaged in the performance of a con-
tract made by the Federal Government and not exempted under 
section 6702(b) of this title, whether negotiated or advertised, the 
principal purpose of which is to furnish services in the United 
States; 
(B) includes an individual without regard to any contractual re-
lationship alleged to exist between the individual and a contractor 
or subcontractor; but 
(C) does not include an individual employed in a bona fide exec-
utive, administrative, or professional capacity, as those terms are 
defined in part 541 of title 29, Code of Federal Regulations. 
(4) UNITED STATES.—The term ‘‘United States’’— 
(A) includes any State of the United States, the District of Co-
lumbia, Puerto Rico, the Virgin Islands, the outer Continental 
Shelf as defined in the Outer Continental Shelf Lands Act (43 
U.S.C. § 1331 et seq.), American Samoa, Guam, Wake Island, and 
Johnston Island; but 
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(B) does not include any other territory under the jurisdiction 
of the United States or any United States base or possession with-
in a foreign country. 
§ 6702. Contracts to which this chapter applies 
(a) IN GENERAL.—Except as provided in subsection (b), this chapter ap-
plies to any contract or bid specification for a contract, whether negotiated 
or advertised, that— 
(1) is made by the Federal Government or the District of Columbia; 
(2) involves an amount exceeding $2,500; and 
(3) has as its principal purpose the furnishing of services in the 
United States through the use of service employees. 
(b) EXEMPTIONS.—This chapter does not apply to— 
(1) a contract of the Federal Government or the District of Colum-
bia for the construction, alteration, or repair, including painting and 
decorating, of public buildings or public works; 
(2) any work required to be done in accordance with chapter 65 of 
this title; 
(3) a contract for the carriage of freight or personnel by vessel, air-
plane, bus, truck, express, railway line or oil or gas pipeline where pub-
lished tariff rates are in effect; 
(4) a contract for the furnishing of services by radio, telephone, tele-
graph, or cable companies, subject to the Communications Act of 1934 
(47 U.S.C. 151 et seq.); 
(5) a contract for public utility services, including electric light and 
power, water, steam, and gas; 
(6) an employment contract providing for direct services to a Federal 
agency by an individual; and 
(7) a contract with the United States Postal Service, the principal 
purpose of which is the operation of postal contract stations. 
§ 6703. Required contract terms 
A contract, and bid specification for a contract, to which this chapter ap-
plies under section 6702 of this title shall contain the following terms: 
(1) MINIMUM WAGE.—The contract and bid specification shall con-
tain a provision specifying the minimum wage to be paid to each class 
of service employee engaged in the performance of the contract or any 
subcontract, as determined by the Secretary or the Secretary’s author-
ized representative, in accordance with prevailing rates in the locality, 
or, where a collective-bargaining agreement covers the service employ-
ees, in accordance with the rates provided for in the agreement, includ-
ing prospective wage increases provided for in the agreement as a re-
sult of arm’s length negotiations. In any case the minimum wage may 
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not be less than the minimum wage specified in section 6704 of this 
title. 
(2) FRINGE BENEFITS.—The contract and bid specification shall 
contain a provision specifying the fringe benefits to be provided to each 
class of service employee engaged in the performance of the contract 
or any subcontract, as determined by the Secretary or the Secretary’s 
authorized representative to be prevailing in the locality, or, where a 
collective-bargaining agreement covers the service employees, to be pro-
vided for under the agreement, including prospective fringe benefit in-
creases provided for in the agreement as a result of arm’s-length nego-
tiations. The fringe benefits shall include medical or hospital care, pen-
sions on retirement or death, compensation for injuries or illness result-
ing from occupational activity, or insurance to provide any of the fore-
going, unemployment benefits, life insurance, disability and sickness in-
surance, accident insurance, vacation and holiday pay, costs of appren-
ticeship 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 para-
graph may be discharged by furnishing any equivalent combinations of 
fringe benefits or by making equivalent or differential payments in cash 
under regulations established by the Secretary. 
(3) WORKING CONDITIONS.—The contract and bid specification shall 
contain a provision specifying that no part of the services covered by 
this chapter may 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 
provide the services. 
(4) NOTICE.—The contract and bid specification shall contain a pro-
vision specifying that on the date a service employee begins work on 
a contract to which this chapter applies, the contractor or subcon-
tractor will deliver to the employee a notice of the compensation re-
quired under paragraphs (1) and (2), on a form prepared by the Fed-
eral agency, or will post a notice of the required compensation in a 
prominent place at the worksite. 
(5) GENERAL SCHEDULE PAY RATES AND PREVAILING RATE SYS-
TEMS.—The contract and bid specification shall contain a statement of 
the rates that would be paid by the Federal agency to each class of 
service employee if section 5332 or 5341 of title 5 were applicable to 
them. The Secretary shall give due consideration to these rates in mak-
ing the wage and fringe benefit determinations specified in this section. 
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§ 6704. Limitation on minimum wage 
(a) IN GENERAL.—A contractor that makes a contract with the Federal 
Government, the principal purpose of which is to furnish services through 
the use of service employees, and any subcontractor, may not pay less than 
the minimum wage specified under section 6(a)(1) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206(a)(1)) to an employee engaged in per-
forming work on the contract. 
(b) VIOLATIONS.—Sections 6705 to 6707(d) of this title are applicable to 
a violation of this section. 
§ 6705. Violations 
(a) LIABILITY OF RESPONSIBLE PARTY.—A party responsible for a viola-
tion of a contract provision required under section 6703(1) or (2) of this 
title or a violation of section 6704 of this title is liable for an amount equal 
to the sum of any deduction, rebate, refund, or underpayment of compensa-
tion due any employee engaged in the performance of the contract. 
(b) RECOVERY OF AMOUNTS UNDERPAID TO EMPLOYEES.— 
(1) WITHHOLDING ACCRUED PAYMENTS DUE ON CONTRACTS.—The 
total amount determined under subsection (a) to be due any employee 
engaged in the performance of a contract may be withheld from ac-
crued payments due on the contract or on any other contract between 
the same contractor and the Federal Government. The amount with-
held shall be held in a deposit fund. On order of the Secretary, the 
compensation found by the Secretary or the head of a Federal agency 
to be due an underpaid employee pursuant to this chapter shall be paid 
from the deposit fund directly to the underpaid employee. 
(2) BRINGING ACTIONS AGAINST CONTRACTORS.—If the accrued pay-
ments withheld under the terms of the contract are insufficient to reim-
burse a service employee with respect to whom there has been a failure 
to pay the compensation required pursuant to this chapter, the Federal 
Government may bring action against the contractor, subcontractor, or 
any sureties in any court of competent jurisdiction to recover the re-
maining amount of underpayment. Any amount recovered shall be held 
in the deposit fund and shall be paid, on order of the Secretary, di-
rectly to the underpaid employee. Any amount not paid to an employee 
because of inability to do so within 3 years shall be covered into the 
Treasury as miscellaneous receipts. 
(c) CANCELLATION
AND ALTERNATIVE COMPLETION.—In addition to 
other actions in accordance with this section, when a violation of any con-
tract stipulation is found, the Federal agency that made the contract may 
cancel the contract on written notice to the original contractor. The Federal 
Government may then make other contracts or arrangements for the com-
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