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41 U.S.C. § 6703 — Required contract terms

Federal law — U.S. Code and appendices · legal_authorities

41 U.S.C. § 6703 — Required contract terms

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Source location: Title 41, Chapter 67, § 6703; chapter-067-service-contract-labor-standards.md

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A contract, and bid specification for a contract, to which this chapter applies under [section 6702 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section6702&num=0&edition=prelim) shall contain the following terms: (1) **Minimum wage.—** — The contract and bid specification shall contain a provision specifying the minimum wage to be paid to each class of service employee engaged in the performance of the contract or any subcontract, as determined by the Secretary or the Secretary’s authorized representative, in accordance with prevailing rates in the locality, or, where a collective-bargaining agreement covers the service employees, in accordance with the rates provided for in the agreement, including prospective wage increases provided for in the agreement as a result of arm’s length negotiations. In any case the minimum wage may not be less than the minimum wage specified in [section 6704 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section6704&num=0&edition=prelim). (2) **Fringe benefits.—** — The contract and bid specification shall contain a provision specifying the fringe benefits to be provided to each class of service employee engaged in the performance of the contract or any subcontract, as determined by the Secretary or the Secretary’s authorized representative to be prevailing in the locality, or, where a collective-bargaining agreement covers the service employees, to be provided for under the agreement, including prospective fringe benefit increases provided for in the agreement as a result of arm’s-length negotiations. The fringe benefits shall include medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, unemployment benefits, life insurance, disability and sickness insurance, accident insurance, vacation and holiday pay, costs of apprenticeship or other similar programs and other bona fide fringe benefits not otherwise required by Federal, State, or local law to be provided by the contractor or subcontractor. The obligation under this paragraph may be discharged by furnishing any equivalent combinations of fringe benefits or by making equivalent or differential payments in cash under regulations established by the Secretary. (3) **Working conditions.—** — The contract and bid specification shall contain a provision specifying that no part of the services covered by this chapter may be performed in buildings or surroundings or under working conditions, provided by or under the control or supervision of the contractor or any subcontractor, which are unsanitary or hazardous or dangerous to the health or safety of service employees engaged to provide the services. (4) **Notice.—** — The contract and bid specification shall contain a provision specifying that on the date a service employee begins work on a contract to which this chapter applies, the contractor or subcontractor will deliver to the employee a notice of the compensation required under paragraphs (1) and (2), on a form prepared by the Federal agency, or will post a notice of the required compensation in a prominent place at the worksite. (5) **General schedule pay rates and prevailing rate systems.—** — The contract and bid specification shall contain a statement of the rates that would be paid by the Federal agency to each class of service employee if section 5332 or 5341 of title 5 were applicable to them. The Secretary shall give due consideration to these rates in making the wage and fringe benefit determinations specified in this section.

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Federal law — U.S. Code and appendices · legal_authorities

41 U.S.C. § 6702 — Contracts to which this chapter applies

**(a) In General.—** Except as provided in subsection (b), this chapter applies to any contract or bid specification for a contract, whether negotiated or advertised, that— (1) is made by the Federal Government or the District of Columbia; (2) involves an amount exceeding $2,500; and (3) has as its principal purpose the furnishing of services in the United States through the use of service employees. **(b) Exemptions.—** This chapter does not apply to— (1) a contract of the Federal Government or the District of Columbia for the construction, alteration, or repair, including painting and decorating, of public buildings or public works; (2) any work required to be done in accordance with chapter 65 of this title; (3) a contract for the carriage of freight or personnel by vessel, airplane, bus, truck, express, railway line or oil or gas pipeline where published tariff rates are in effect; (4) a contract for the furnishing of services by radio, telephone, telegraph, or cable companies, subject to the Communications Act of 1934 ([47 U.S.C. 151](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title47-section151&num=0&edition=prelim) et seq.); (5) a contract for public utility services, including electric light and power, water, steam, and gas; (6) an employment contract providing for direct services to a Federal agency by an individual; and (7) a contract with the United States Postal Service, the principal purpose of which is the operation of postal contract stations.

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Federal law — U.S. Code and appendices · legal_authorities

41 U.S.C. § 6704 — Limitation on minimum wage

**(a) In General.—** A contractor that makes a contract with the Federal Government, the principal purpose of which is to furnish services through the use of service employees, and any subcontractor, may not pay less than the minimum wage specified under section 6(a)(1) of the Fair Labor Standards Act of 1938 ([29 U.S.C. 206(a)(1)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section206/a/1&num=0&edition=prelim)) to an employee engaged in performing work on the contract. **(b) Violations.—** Sections 6705 to 6707(d) of this title are applicable to a violation of this section.

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Federal law — U.S. Code and appendices · legal_authorities

41 U.S.C. § 6701 — Definitions

In this chapter: (1) **Compensation.—** — The term “compensation” means any of the payments or fringe benefits described in [section 6703 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section6703&num=0&edition=prelim). (2) **Secretary.—** — The term “Secretary” means the Secretary of Labor. (3) **Service employee.—** — The term “service employee”— (A) means an individual engaged in the performance of a contract made by the Federal Government and not exempted under [section 6702(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section6702/b&num=0&edition=prelim), whether negotiated or advertised, the principal purpose of which is to furnish services in the United States; (B) includes an individual without regard to any contractual relationship alleged to exist between the individual and a contractor or subcontractor; but (C) does not include an individual employed in a bona fide executive, administrative, or professional capacity, as those terms are defined in part 541 of title 29, Code of Federal Regulations. (4) **United states.—** — The term “United States”— (A) includes any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, the outer Continental Shelf as defined in the Outer Continental Shelf Lands Act (43 U.S.C. § 1331 et seq.), American Samoa, Guam, Wake Island, and Johnston Island; but (B) does not include any other territory under the jurisdiction of the United States or any United States base or possession within a foreign country.

Source: Supplied U.S. Code snapshot — release unconfirmed · 41 U.S.C. § 6701

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Federal law — U.S. Code and appendices · legal_authorities

41 U.S.C. § 6707 — Enforcement and administration of chapter

**(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 p

Source: Supplied U.S. Code snapshot — release unconfirmed · 41 U.S.C. § 6707

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Federal law — U.S. Code and appendices · legal_authorities

41 U.S.C. § 6703 — Required contract terms

Page 172 TITLE 41—PUBLIC CONTRACTS § 6702 (B) includes an individual without regard to any contractual relationship alleged to exist between the individual and a con- tractor or subcontractor; but (C) does not include an individual em- ployed in a bona fide executive, administra- tive, or professional capacity, as those terms are defined in part 541 of title 29, Code of Federal Regulations. (4) UNITED STATES.—The term ‘‘United States’’— (A) includes any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, the outer Conti- nental Shelf as defined in the Outer Conti- nental Shelf Lands Act (43 U.S.C. § 1331 et seq.), American Samoa, Guam, Wake Island, and Johnston Island; but (B) does not include any other territory under the jurisdiction of the United States or any United States base or possession within a foreign country. (Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3811.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 6701 ............ 41:357. Pub. L. 89–286, § 8, Oct. 22, 1965, 79 Stat. 1036; Pub. L. 93–57, § 1, July 6, 1973, 87 Stat. 140; Pub. L. 94–489, § 3, Oct. 13, 1976, 90 Stat. 2358. In paragraph (3), the word ‘‘individual’’ is substituted for ‘‘person’’ because of the definition of ‘‘person’’ in 1:1. The words ‘‘contract made by the Federal Govern- ment’’ are substituted for ‘‘contract entered into by the United States’’ for consistency in the revised title. The words ‘‘as of July 30, 1976, and any subsequent revi- sion of those regulations’’ are omitted as obsolete. In paragraph (4)(A), the words ‘‘the outer Continental Shelf’’ are substituted for ‘‘Outer Continental Shelf lands’’ for consistency with the definition in 43:1331 and for consisten

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