[Code of Federal Regulations]
[Title 29, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4.105]

[Page 53-54]
 
                             TITLE 29--LABOR
 
PART 4_LABOR STANDARDS FOR FEDERAL SERVICE CONTRACTS--Table of Contents
 
    Subpart C_Application of the McNamara-O'Hara Service Contract Act
 
Sec. 4.105  The Act as amended.

    (a) The provisions of the Act (see Sec. Sec. 4.102-4.103) were 
amended, effective October 9, 1972, by Public Law 92-473, signed into 
law by the President on that date. By virtue of amendments made to 
paragraphs (1) and (2) of section 2(a) and the addition to section 4 of 
a new subsection (c), the compensation standards of the Act (see 
Sec. Sec. 4.159-4.179) were revised to impose on successor contractors 
certain requirements (see Sec. 4.1b) with respect to payment of wage 
rates and fringe benefits based on those agreed upon for substantially 
the same services in the same locality in collective bargaining 
agreements entered into by their predecessor contractors (unless such 
agreed compensation is substantially at variance with that locally 
prevailing or the agreement was not negotiated at arm's length). The 
Secretary of Labor is to give effect to the provisions of such 
collective bargaining agreements in his wage determinations under 
section 2 of the Act. A new paragraph (5) added to section 2(a) of the 
Act requires a statement in the government service contract of the rates 
that would be paid by the contracting agency in the event of its direct 
employment of those classes of service employees to be employed on the 
contract work who, if directly employed by the agency, would receive 
wages determined as provided in 5 U.S.C. 5341. The Secretary of Labor is 
directed to give due consideration to such rates in determining 
prevailing monetary wages and fringe benefits under the Act's 
provisions. Other provisions of the 1972 amendments include the addition 
of a new section 10 to the Act to insure that wage determinations are 
issued by the Secretary for substantially all service contracts subject 
to section 2(a) of the Act at the earliest administratively feasible 
time; an amendment to section 4(b) of the Act to provide, in addition to 
the conditions previously specified for issuance of administrative 
limitations, variations, tolerances, and exemptions (see Sec. 4.123), 
that administrative action in this regard shall be taken only in special 
circumstances where the Secretary determines that it is in accord with 
the remedial purpose of the Act to protect prevailing labor standards; 
and a new subsection (d) added to section 4 of the Act providing for the 
award of service contracts for terms not more than 5

[[Page 54]]

years with provision for periodic adjustment of minimum wage rates and 
fringe benefits payable thereunder by the issuance of wage 
determinations by the Secretary of Labor during the term of the 
contract. A further amendment to section 5(a) of the Act requires the 
names of contractors found to have violated the Act to be submitted for 
the debarment list (see Sec. 4.188) not later than 90 days after the 
hearing examiner's finding of violation unless the Secretary recommends 
relief, and provides that such recommendations shall be made only 
because of unusual circumstances.
    (b) The provisions of the Act were amended by Public Law 93-57, 87 
Stat. 140, effective July 6, 1973, to extend the Act's coverage to 
Canton Island.
    (c) The provisions of the Act were amended by Public Law 94-489, 90 
Stat. 2358, approved October 13, 1976, to extend the Act's coverage to 
white collar workers. Accordingly, the minimum wage protection of the 
Act now extends to all workers, both blue collar and white collar, other 
than persons employed in a bona fide executive, administrative, or 
professional capacity as those terms are used in the Fair Labor 
Standards Act and in part 541 of title 29. Public Law 94-489 
accomplished this change by adding to section 2(a)(5) of the Act a 
reference to 5 U.S.C. 5332, which deals with white collar workers, and 
by amending the definition of service contract employee in section 8(b) 
of the Act.
    (d) Included in this part 4 and in parts 6 and 8 of this subtitle 
are provisions to give effect to the amendments mentioned in this 
section.