The Act requires
general contractors and
subcontractors performing services on prime contracts in excess of $2,500 to pay service
employees in various classes no less than the
wage rates and
fringe benefits found prevailing in the locality as determined by the
United States Department of Labor, or the rates contained in a predecessor contractor's
collective bargaining agreement. This is also known as the
prevailing wage. The SCA applies to every contract entered into by the
United States or the
District of Columbia, the principal purpose of which is to furnish services to the United States through the use of service employees. The SCA requires contractors and subcontractors performing services on covered federal or District of Columbia contracts in excess of $2,500 to pay service employees in various classes no less than the monetary wage rates and to furnish fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement.
Safety and
health standards also apply to such contracts. ==References==