What is the Service Contract Act?

The Service Contract Act applies to every contract entered into by the United States or the District of Columbia, the principal purpose of which is to furnish services to the United States through the use of service employees. The act requires that contractors and subcontractors pay no less than the prevailing wage and fringe benefits package found in the locality. Unfortunately, this means that most SCA workers rarely see a wage increase! However, the act also stipulates that the workers be paid the rates found in existing or prior collective bargaining agreements. The IUOE has helped thousands of SCA employees gain better wages and benefits by offering them the chance to join our union. Our union assists you in negotiating all your wages, benefits and working conditions. After a contract is negotiated, most SCA employees see annual increases in wages and fringe benefits.