![]() ![]() If the term of the contract is more than one year, the minimum wages and fringe benefits shall be subject to adjustment after one year and not less often than once every two years under Wage Determinations issued by DOL.Each service employee employed in the performance of this contract (both prime and subcontractors –to which the prime must flow this clause down) shall be paid not less than the minimum wages and fringe benefits specified in the Wage Determination attached to the contract.Relevant parts of the clause are as follows: The Service Contract Labor Standards clause, FAR 52.222-41, is mandated for all non-exempt service contracts over $2,500. A recent Board case demonstrates the entitlement. Furthermore, the FAR clauses permit a contractor to recover increases in wages and benefits mandated by future Wage Determinations when they impact on options and extensions. It directs the Department of Labor (“DOL”) to issue minimum wage orders applicable to fixed-price services contracts, called “Wage Determinations,” which are developed to reflect “prevailing wages.” Through Federal Acquisition Regulation (“FAR”)-mandated contract clauses, contractors are forbidden from paying less than the wages and fringe benefits contained in a Wage Determination. The SCA was designed to protect wages and fringe benefits of service workers employed on U.S. Contractors know that most contracts for services are subject to the Service Contract Act, 41 U.S.C. ![]()
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