Service Contract Act Compliance

Navigate SCA requirements for federal service contracts

Service Contract Act Overview

The Service Contract Act (SCA) requires contractors and subcontractors performing services on federal contracts over $2,500 to pay service employees prevailing wages and fringe benefits.

$2,500
Contract Threshold
$4.90/hr
Min H&W Benefit 2024
300+
Labor Categories

Covered Service Contracts

Typical Services

  • Janitorial and custodial
  • Food services
  • Guard and security
  • Landscaping/groundskeeping
  • IT support services

Professional Services

  • Administrative support
  • Data entry/processing
  • Equipment maintenance
  • Transportation services
  • Recreation services

Exemptions

  • Construction contracts (Davis-Bacon)
  • Transportation under published tariffs
  • Communications services
  • Professional employees
  • Contracts outside US

Health & Welfare Benefits

2024 Requirements

Minimum H&W Rate: $4.90 per hour
Can be provided as: Bona fide benefits OR cash equivalent
Qualifying Benefits: Health insurance, retirement, vacation, holidays