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§ 351. —  Required contract provisions; minimum wages.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 41USC351]

 
                       TITLE 41--PUBLIC CONTRACTS
 
               CHAPTER 6--SERVICE CONTRACT LABOR STANDARDS
 
Sec. 351. Required contract provisions; minimum wages

    (a) Every contract (and any bid specification therefor) entered into 
by the United States or the District of Columbia in excess of $2,500, 
except as provided in section 356 of this title, whether negotiated or 
advertised, the principal purpose of which is to furnish services in the 
United States through the use of service employees, shall contain the 
following:
        (1) A provision specifying the minimum monetary wages to be paid 
    the various classes of service employees in the performance of the 
    contract or any subcontract thereunder, as determined by the 
    Secretary, or his authorized representative, in accordance with 
    prevailing rates for such employees in the locality, or, where a 
    collective-bargaining agreement covers any such service employees, 
    in accordance with the rates for such employees provided for in such 
    agreement, including prospective wage increases provided for in such 
    agreement as a result of arm's length negotiations. In no case shall 
    such wages be lower than the minimum specified in subsection (b) of 
    this section.
        (2) A provision specifying the fringe benefits to be furnished 
    in the various classes of service employees, engaged in the 
    performance of the contract or any subcontract thereunder, as 
    determined by the Secretary or his authorized representative to be 
    prevailing for such employees in the locality, or, where a 
    collective-bargaining agreement covers any such service employees, 
    to be provided for in such agreement, including prospective fringe 
    benefits increases provided for in such agreement as a result of 
    arm's-length negotiations. Such fringe benefits shall include 
    medical or hospital care, pensions on retirement or death, 
    compensation for injuries or illness resulting from occupational 
    activity, or insurance to provide any of the foregoing, unemployment 
    benefits, life insurance, disability and sickness insurance, 
    accident insurance, vacation and holiday pay, costs of 
    apprenticeship 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 subparagraph may be discharged by furnishing any equivalent 
    combinations of fringe benefits or by making equivalent or 
    differential payments in cash under rules and regulations 
    established by the Secretary.
        (3) A provision that no part of the services covered by this 
    chapter will 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 furnish the services.
        (4) A provision that on the date a service employee commences 
    work on a contract to which this chapter applies, the contractor or 
    subcontractor will deliver to the employee a notice of the 
    compensation required under paragraphs (1) and (2) of this 
    subsection, on a form prepared by the Federal agency, or will post a 
    notice of the required compensation in a prominent place at the 
    worksite.
        (5) A statement of the rates that would be paid by the Federal 
    agency to the various classes of service employees if section 5341 
    or section 5332 of title 5 were applicable to them. The Secretary 
    shall give due consideration to such rates in making the wage and 
    fringe benefit determinations specified in this section.

    (b)(1) No contractor who enters into any contract with the Federal 
Government the principal purpose of which is to furnish services through 
the use of service employees and no subcontractor thereunder shall pay 
any of his employees engaged in performing work on such contracts less 
than the minimum wage specified under section 206(a)(1) of title 29.
    (2) The provisions of sections 352 to 354 of this title shall be 
applicable to violations of this subsection.

(Pub. L. 89-286, Sec. 2, Oct. 22, 1965, 79 Stat. 1034; Pub. L. 92-473, 
Secs. 1, 2, Oct. 9, 1972, 86 Stat. 789; Pub. L. 94-489, Secs. 1, 2, Oct. 
13, 1976, 90 Stat. 2358.)


                               Amendments

    1976--Subsec. (a). Pub. L. 94-489, Sec. 1(a), struck out ``as 
defined herein'' after ``use of service employees''.
    Subsec. (a)(5). Pub. L. 94-489, Sec. 2, inserted ``or section 5332'' 
after ``section 5341''.
    Subsec. (b)(1). Pub. L. 94-489, Sec. 1(b), struck out ``as defined 
herein'' after ``use of service employees''.
    1972--Subsec. (a)(1). Pub. L. 92-473, Sec. 1(a), provided for 
minimum monetary wages to be paid service employees where collective-
bargaining agreement covers any such service employees in accordance 
with the rates for such employees provided for in such agreement, 
including prospective wage increases provided for in such agreement as a 
result of arm's-length negotiations.
    Subsec. (a)(2). Pub. L. 92-473, Sec. 1(b), provided for fringe 
benefits to be furnished service employees where collective-bargaining 
agreement covers any such service employees, to be provided for in such 
agreement, including prospective fringe increases provided for in such 
agreement as a result of arm's-length negotiations.
    Subsec. (a)(5). Pub. L. 92-473, Sec. 2, added par. (5).


                             Effective Date

    Section 9 of Pub. L. 89-286 provided that: ``This Act [enacting this 
chapter] shall apply to all contracts entered into pursuant to 
negotiations concluded or invitations for bids issued on or after ninety 
days from the date of enactment of this Act [Oct. 22, 1965].''


                               Short Title

    Section 1 of Pub. L. 89-286 provided that: ``This Act [enacting this 
chapter] may be cited as the `Service Contract Act of 1965'.''

                  Section Referred to in Other Sections

    This section is referred to in sections 352, 353, 357, 358 of this 
title; title 38 section 1720.



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