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Service Contract Act (SCA)

A US labour law setting minimum wages and fringe benefits for service employees on covered federal service contracts.

The McNamara-O’Hara Service Contract Act (SCA) is a U.S. federal labor law that establishes minimum wage and fringe benefit requirements for service employees working on covered federal service contracts. The Act requires contractors and subcontractors to pay service employees no less than the prevailing wages and fringe benefits determined by the U.S. Department of Labor for the locality in which the work is performed. Commonly incorporated into federal service contracts through the Federal Acquisition Regulation (FAR), the SCA helps ensure fair compensation and promotes consistent labor standards across government-funded service contracts.

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Related Glossary Terms

The official compilation of permanent U.S. federal laws, providing the statutory basis for many contracting requirements.
A global classification system used to categorize products and services for procurement and spend analysis.
A unique 12-character identifier assigned via SAM.gov to organizations doing business with the federal government, replacing the DUNS number.
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