Service Contract Act

The Service Contract Act (SCA/SCLS) Program is for federal contractors with employees working exclusively (or nearly so) on federal Service Contract Act (SCA/SCLS) contracts. SCA Fringe Benefit requirements, such as Health & Welfare (H&W) rates, Vacation, and paid Holidays, are often defined by each contract. There are also federal sick leave requirements.

One simple monetary advantage any SCA contractor may have is how the Health & Welfare rate fringe requirement is addressed. The guidelines a contractor must follow to be in compliance and receive the maximum allowable credit for fringes paid on any Prevailing Wage project are definite and defined.

Service Contract Act (SCA/SCLS) employees are unique. A new contract often brings the contractor an inherited set of new employees. A worker can be on the job, just under the previous contractor holder. You could be their fourth or fifth employer, even though it’s the same job. Because of this, the mindset of the worker is truly different than a typical company hire. How the contractor incorporates these inherited SCA/SCLS workers as part of their company is key to contract success.