§ 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.