Congress Should Consider Repeal of the Service Contract Act
HRD-83-4
Published: Jan 31, 1983. Publicly Released: Jan 31, 1983.
Skip to Highlights
Highlights
GAO reported on the problems and impacts of the Service Contract Act of 1965, as amended, and the Department of Labor's administration and enforcement of its implementing regulations and procedures.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should consider repealing the Service Contract Act of 1965. | Several Congresses considered bills to amend or repeal the Service Contract Act. In the 99th Congress, a Senate Committee reported out a bill to raise the threshold to $1 million on defense contracts, but the bill was defeated. Service Contract Act reform bills were considered by the 100th Congress. Labor's legislative proposal was introduced in the 100th Congress in August 1987. | |
| Congress should consider amending section 6(e) of the Fair Labor Standards Act to ensure continued federal minimum wage coverage for all employees of employers providing contract services to the United States or the District of Columbia. | Action on this recommendation is dependent upon the repeal of the Service Contract Act. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of Federal Procurement Policy | The Administrator for Federal Procurement Policy should, if the Service Contract Act is repealed, encourage federal agencies to include provisions in their procurement regulations and service contracts, similar to those already required for professional employees, to discourage wage busting of all service employees on federal service contracts. |
No action has been taken because implementation of this recommendation is dependent on the repeal of the Service Contract Act; however, repeal appears unlikely.
|
| Office of Federal Procurement Policy | The Administrator of the Office of Federal Procurement Policy should monitor the impact of repeal on service contract employees. If he determines that repeal has an adverse impact on the employees, the Administrator should develop administrative policies or legislative recommendations to deal with the problem. |
No action has been taken because the Service Contract Act has not been repealed.
|
Full Report
Public Inquiries
Topics
Federal procurementFringe benefitsLabor lawLaw enforcementMinimum wage ratesProgram evaluationProposed legislationService contractsWage surveysWage determinations