U.S. Code » Title 41 » Subtitle Subtitle II— Other Advertising and Contract Provisions › Chapter CHAPTER 67— SERVICE CONTRACT LABOR STANDARDS

41 U.S.C. § 6703

Required contract terms

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A contract, and bid specification for a contract, to which this chapter applies under section 6702 of this title shall contain the following terms:(1)Minimum wage.—The contract and bid specification shall contain a provision specifying the minimum wage to be paid to each class of service employee engaged in the performance of the contract or any subcontract, as determined by the Secretary or the Secretary’s authorized representative, in accordance with prevailing rates in the locality, or, where a collective-bargaining agreement covers the service employees, in accordance with the rates provided for in the agreement, including prospective wage increases provided for in the agreement as a result of arm’s length negotiations. In any case the minimum wage may not be less than the minimum wage specified in section 6704 of this title.(2)Fringe benefits.—The contract and bid specification shall contain a provision specifying the fringe benefits to be provided to each class of service employee engaged in the performance of the contract or any subcontract, as determined by the Secretary or the Secretary’s authorized representative to be prevailing in the locality, or, where a collective-bargaining agreement covers the service employees, to be provided for under the agreement, including prospective fringe benefit increases provided for in the agreement as a result of arm’s-length negotiations. The 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 paragraph may be discharged by furnishing any equivalent combinations of fringe benefits or by making equivalent or differential payments in cash under regulations established by the Secretary.(3)Working conditions.—The contract and bid specification shall contain a provision specifying that no part of the services covered by this chapter may 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 provide the services.(4)Notice.—The contract and bid specification shall contain a provision specifying that on the date a service employee begins 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), 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)General schedule pay rates and prevailing rate systems.—The contract and bid specification shall contain a statement of the rates that would be paid by the Federal agency to each class of service employee if section 5332 or 5341 of title 5 were applicable to them. The Secretary shall give due consideration to these rates in making the wage and fringe benefit determinations specified in this section.(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3812.)

Historical and Revision Notes

Revised

Section

Source (U.S. Code)

Source (Statutes at Large)

6703

41:351(a) (words before par. (1) related to required contract terms), (1)–(5).

Pub. L. 89–286, § 2(a) (words before par. (1) related to required contract terms), (1)–(5), Oct. 22, 1965, 79 Stat. 1034; Pub. L. 92–473, §§ 1, 2, Oct. 9, 1972, 86 Stat. 789; Pub. L. 94–489, § 2, Oct. 13, 1976, 90 Stat. 2358.

Executive DocumentsExecutive Order No. 13495

Ex. Ord. No. 13495, Jan. 30, 2009, 74 F.R. 6103, which provided for nondisplacement of qualified workers under a successor service contract upon the expiration of the predecessor contract, was revoked by Ex. Ord. No. 13897, § 1, Oct. 31, 2019, 84 F.R. 59709, formerly set out below.

Executive Order No. 13897

Ex. Ord. No. 13897, Oct. 31, 2019, 84 F.R. 59709, which related to the revocation of Ex. Ord. No. 13495, formerly set out above, was revoked by Ex. Ord. No. 14055, § 9, Nov. 18, 2021, 86 F.R. 66400, set out below.

Executive Order No. 14055

Ex. Ord. No. 14055, Nov. 18, 2021, 86 F.R. 66397, which required agencies to ensure that service contracts and subcontracts that succeed a contract for performance of the same or similar work, and solicitations for such contracts and subcontracts, include a clause requiring the contractor and its subcontractors offer a right of first refusal of employment to service employees employed under the predecessor contract and its subcontracts, was revoked by Ex. Ord. No. 14148, § 2(qq), Jan. 20, 2025, 90 F.R. 8239.

Notes of Decisions
Cited in 26 cases (16 in the last 5 years), 2015–2026 · leading case: Call Henry, Inc. v. United States
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Call Henry, Inc. v. United States (2017) cafc · cites it 2× “41 U.S.C. §§ 6703 , 6704; 48 C.F.R. §§ 22.”
Menocal v. Geo Group, Inc. (2015) cod · cites it 2× “” 41 U.S.C. § 6703 (2); see also American Waste Removal Co.”
Tri-County Contractors, Inc. v. Thomas Perez (2016) dcd · cites it 2× “See 41 U.S.C. § 6703 ; 29 C.F.R. § 4.6 . Among other things, each such contract must specify “the minimum wage to be paid to each class of service employee.”
United States Ex Rel. Conteh v. IKON Office Solutions, Inc. (2015) dcd · cites it 3× “Currently codified at 41 U.S.C. § 6703 . 6 . Currently codified at 41 U.”
Garcia v. Skanska USA Bldg., Inc. (2018) cadc “See 41 U.S.C. § 6703 . Challenges to the Department's classification and wage-setting decisions are channeled administratively through the Department's Wage and Hour Division and Wage Appeals Board.”
Jose Perez v. Owl, Inc. (2024) ca11 “41 U.S.C. § 6703 (a)(1); 29 C.F.R. § 4.5 (a).”
BAILEY v. DEJOY (2021) med · cites it 4× “§ 2000e-16; (4) the Service Contract Act, 41 U.S.C. § 6703 ; (5) the whistleblower protections of the Fair Labor Standards Act, 29 U.”
BAE Systems Technology Solutions & Services Inc. (2024) asbca · cites it 3× “41 U.S.C. § 6703 (1), (2). DOL determines these minimum wages and fringe benefits in a wage determination based on either (1) those prevailing in the locality, or (2) as set forth in an applicable CBA which includes “prospective fringe benefit increases provided for in the…”
HD Inc. (2025) asbca · cites it 3× “41 U.S.C. § 6703 (1), (2); Lear Siegler Servs.”
Centerra Group, LLC f/k/a The Wackenhut Services, Inc. (2018) asbca · cites it 2× “See 41 U.S.C. § 6703 (a)(l) (wages are set by CBA in covered contracts).”
Holstad v. United States Department of Labor (2021) mnd · cites it 2× “177 (c)(1); see 41 U.S.C. § 6703 (2) (providing that the obligation to provide fringe benefits may be satisfied “by furnishing any equivalent combinations of fringe benefits or by making equivalent or differential payments in cash under regulations established by the Secretary”).”
Government Contracting Resources, Inc. (2015) asbca · cites it 2× “41 U.S.C. § 6703 ; FAR 52.222-4l(c). Additionally, contractors are subject to a rule that requires successor contractors not to pay less than a predecessor paid under its CBA.”
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