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

41 U.S.C. § 6707

Enforcement and administration of chapter

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(a)Enforcement of Chapter.—Sections 6506 and 6507 of this title govern the Secretary’s authority to enforce this chapter, including the Secretary’s authority to prescribe regulations, issue orders, hold hearings, make decisions based on findings of fact, and take other appropriate action under this chapter.(b)Limitations and Regulations for Variations, Tolerances, and Exemptions.—The Secretary may provide reasonable limitations and may prescribe regulations allowing reasonable variation, tolerances, and exemptions with respect to this chapter (other than subsection (f)), but only in special circumstances where the Secretary determines that the limitation, variation, tolerance, or exemption is necessary and proper in the public interest or to avoid the serious impairment of Federal Government business, and is in accord with the remedial purpose of this chapter to protect prevailing labor standards.(c)Preservation of Wages and Benefits Due Under Predecessor Contracts.—(1)In general.—Under a contract which succeeds a contract subject to this chapter, and under which substantially the same services are furnished, a contractor or subcontractor may not pay a service employee less than the wages and fringe benefits the service employee would have received under the predecessor contract, including accrued wages and fringe benefits and any prospective increases in wages and fringe benefits provided for in a collective-bargaining agreement as a result of arm’s-length negotiations.(2)Exception.—This subsection does not apply if the Secretary finds after a hearing in accordance with regulations adopted by the Secretary that wages and fringe benefits under the predecessor contract are substantially at variance with wages and fringe benefits prevailing in the same locality for services of a similar character.(d)Duration of Contracts.—Subject to limitations in annual appropriation acts but notwithstanding any other law, a contract to which this chapter applies may, if authorized by the Secretary, be for any term of years not exceeding 5, if the contract provides for periodic adjustment of wages and fringe benefits pursuant to future determinations, issued in the manner prescribed in section 6703 of this title at least once every 2 years during the term of the contract, covering each class of service employee.(e)Exclusion of Fringe Benefit Payments in Determining Overtime Pay.—In determining any overtime pay to which a service employee is entitled under Federal law, the regular or basic hourly rate of pay of the service employee does not include any fringe benefit payments computed under this chapter which are excluded from the definition of “regular rate” under section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(e)).(f)Timeliness of Wage and Fringe Benefit Determinations.—It is the intent of Congress that determinations of minimum wages and fringe benefits under section 6703(1) and (2) of this title should be made as soon as administratively feasible for all contracts subject to this chapter. In any event, the Secretary shall at least make the determinations for contracts under which more than 5 service employees are to be employed.(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3815.)

Historical and Revision Notes

Revised

Section

Source (U.S. Code)

Source (Statutes at Large)

6707(a)–(d)

41:353.

Pub. L. 89–286, § 4, Oct. 22, 1965, 79 Stat. 1035; Pub. L. 92–473, § 3, Oct. 9, 1972, 86 Stat. 789.

6707(e)

41:355.

Pub. L. 89–286, § 6, Oct. 22, 1965, 79 Stat. 1035.

6707(f)

41:358.

Pub. L. 89–286, § 10, as added Pub. L. 92–473, § 5, Oct. 9, 1972, 86 Stat. 790; Pub. L. 94–273, § 29, Apr. 21, 1976, 90 Stat. 380.

In subsection (e), the words “the definition of ‘regular rate’ under section 7(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(e))” are substituted for “the regular rate under the Fair Labor Standards Act by provisions of section 7(d) thereof ” for clarity, to correct the reference to “the Fair Labor Standards Act” in accordance with section 1 of the Fair Labor Standards Act of 1938 (29:201), which provided the short title for the Act, and to correct the reference to “section 7(d) thereof ” in accordance with section 204(d)(1) of the Fair Labor Standards Amendments of 1966 (Public Law 89–601, 80 Stat. 836), which amended the Fair Labor Standards Act of 1938 by redesignating section 7(d) as 7(e).

In subsection (f), the words “paragraphs (1) and (2) of section 2”, which appear in section 10 of the Service Contract Act of 1965, as added by section 5 of Public Law 92–473 (86 Stat. 790), are treated as a reference to paragraphs (1) and (2) of section 2(a) of the Service Contract Act of 1965 to reflect the probable intent of Congress. The words “which are entered into during the applicable fiscal year”, 41:358(1)–(4), and the words “On and after July 1, 1976” are omitted as obsolete.

Notes of Decisions
Cited in 14 cases (9 in the last 5 years), 2014–2026 · leading case: Tri-Cnty. Contractors, Inc. v. Thomas Perez, 155 F. Supp. 3d 81 (D.D.C. 2016).
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Tri-Cnty. Contractors, Inc. v. Thomas Perez, 155 F. Supp. 3d 81 (D.D.C. 2016). “§ 3703 (a); 41 U.S.C. § 6707 (a), and is authorized to debar a federal contractor found to be in violation of either statute' — that is, to bar it from receiving federal contracts, see 41 U.”
Ocean Ships, Inc. v. United States, 115 Fed. Cl. 577 (Fed. Cl. 2014). “prospective wage rates and fringe benefit provisions that are effective only upon such contingencies,” and further states that the "contingency language” does not “reflect[] [an] arm’s length negotiation” under "section 4(c)” of the Service Contract Act (now codified as 41…”
Call Henry, Inc. v. United States, 125 Fed. Cl. 282 (Fed. Cl. 2016). “” 41 U.S.C. § 6707 (c)(1). Furthermore, wage determination clauses and the Services Contract Act do not “require successor contractors to comply with any provision of the predecessor’s [collective bargaining agreement] other than the wage and fringe benefit provisions.”
Jose Perez v. Owl, Inc., 110 F.4th 1296 (11th Cir. 2024). “See 41 U.S.C. § 6707 ; 85 Fed. Reg. 13,186 (Mar.”
Oliverio-Still v. AVMAC LLC, No. 3:24-cv-00870 (S.D. Cal. Mar. 3, 2025). · cites it 4× “12 Defendant initially cites the SCA, 41 U.S.C. § 6707 (e): 13 Exclusion of fringe benefit payments in determining overtime pay.”
Hd Inc., No. 63794 (A.S.B.C.A. Mar. 24, 2025). · cites it 3× “41 U.S.C. § 6707 (c)(1). In short, the CBA terms take precedence over the DOL locality wage determination.”
Cae USA, Inc., No. ASBCA No. 58006 (A.S.B.C.A. Jan. 27, 2014). · cites it 2× “[Bold added] 41 U.S.C. § 6707 (c)(1). 13. The Federal Acquisition Regulation (FAR) includes the following: FAR 22.”
Centerra Grp., LLC f/k/a The Wackenhut Servs., Inc., No. ASBCA No. 61267 (A.S.B.C.A. Nov. 16, 2018). “41 U.S.C. § 6707 (e). It is telling that the specific regulatory provisions referenced in FAR 52.”
Wayne Holstad v. U.S. Dept. of Labor, No. 21-3222 (8th Cir. June 17, 2022). “§ 706 (2)(A) (reviewing court shall hold unlawful and set aside agency action, findings, and conclusions that are arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law); 41 U.S.C. §§ 6707 (a), 6507(e) (administrative findings of fact in SCA…”
Bailey v. Dejoy, No. 1:20-cv-00042 (D. Me. Feb. 26, 2021). “2002) (quotation marks omitted); see 41 U.S.C. § 6707 (discussing the Secretary of Labor’s “authority to enforce” the SCA, including, in part, the authority to “hold hearings, make decisions based on findings of fact, and take other appropriate action”); 29 C.”
BAE Sys. Tech. Solutions & Servs. Inc., No. 63218, 63219 (A.S.B.C.A. July 29, 2024). “41 U.S.C § 6707(c)(1). Successor contractors, such as BAE, “may not pay a service 9 DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below is subject to an ASBCA Protective Order.”
BCFS Health & Human Servs. v. United States Dep't of Labor, No. 5:21-cv-00776 (W.D. Tex. Mar. 17, 2022). “While 41 U.S.C. § 6707 (a) does not mandate any administrative review of SCA jurisdiction determinations, it does grant the Secretary of the DOL authority to prescribe regulations such as those set out in 29 C.”
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41 U.S.C. § 6707(c)(1): 1 case
BAE Sys. Tech. Solutions & Servs. Inc., No. 63218, 63219 (A.S.B.C.A. July 29, 2024). “41 U.S.C § 6707(c)(1). Successor contractors, such as BAE, “may not pay a service 9 DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below is subject to an ASBCA Protective Order.”
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