View Rule

View EO 12866 Meetings

Printer-Friendly Version Download RIN Data in XML

DOL/ESA

RIN: 1215-AA78

Publication ID: Spring 1996

Title: Labor Standards for Federal Service Contracts
Abstract: The Service Contract Act (SCA) applies to Federal contracts principally for the furnishing of services through the use of service employees and, on contracts over $2,500 where the predecessor contract was not subject to a collective bargaining agreement, requires the Department of Labor to determine prevailing wages and fringe benefits in the locality to be paid to various classifications of workers on the contract. Prevailing wage determinations issued by the Department, which become part of the Federal contract, establish the minimum compensation for employees performing on that contract. The Service Employees International Union (SEIU) sued DOL in March 1991 over DOL's methodology for determining health and welfare fringe benefits, and for not periodically updating fringe benefit levels. The District Court remanded the case to DOL for exhaustion of administrative remedies, which led to the DOL's Board of Service Contract Appeals decision that remanded the case to the Wage Hour Division to consider alternative methods of implementing the statute. DOL is developing information on the occupational mix of service contract employees utilizing procurement data in the Federal Procurement Data System, and a survey of SCA-covered contracts is expected to be completed in early 1996. This study is expected to provide information necessary to more fully develop proposed fringe benefit methodologies and will also provide data for purposes of economic impact analyses. A notice of proposed rulemaking will invite comment on alternatives for developing an appropriate SCA fringe benefit determination procedure.
Agency: Department of Labor(DOL)	Priority: Economically Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Proposed Rule Stage
CFR Citation: 29 CFR 4
Legal Authority: 41 USC 351 et seq 79 Stat 1034, as amended in 86 Stat 789 90 Stat 2358 41 USC 38 41 USC 39 5 USC 301

Legal Deadline:

Action	Source	Description	Date
Final	Judicial		07/31/1996

Timetable:

Action	Date	FR Cite
NPRM	05/00/1996

Regulatory Flexibility Analysis Required: Yes	Government Levels Affected: Federal
Small Entities Affected: Businesses
Included in the Regulatory Plan: No
Agency Contact: Maria Echaveste Administrator, Wage and Hour Division Department of Labor Employment Standards Administration Room S3502, 200 Constitution Avenue NW, FP Building, Washington, DC 20210 Phone:202 219-8305