How do we find the applicable Wage Determination for our contract?

Wage Determinations are posted on SAM.gov under the Wage Determinations section. They are identified by state, county, and type of service. The contracting officer must incorporate the applicable WD in the contract's Section J.

What happens when Wage Determinations change mid-contract?

Wage Determinations are updated annually. When a contract is extended or exercised, the new WD applies. You are generally entitled to a contract price adjustment to cover mandatory wage increases — submit a request to the contracting officer promptly.

Does the Service Contract Act apply to salaried employees?

The SCA covers 'service employees' — primarily non-managerial, non-professional workers. Bona fide executive, administrative, and professional employees (as defined by FLSA) are exempt. Misclassifying workers as exempt is a common compliance risk.

What are health and welfare fringe benefit requirements under the SCA?

The current SCA fringe benefit rate (updated annually by DOL) must be provided as either bona fide fringe benefits (health insurance, retirement) or as additional cash wages. Verify the current H&W rate on SAM.gov before pricing a bid.

High RiskFARLabor

52.222-41 — Service Contract Labor Standards

Last updated: 2026-04-09

Researched by the BidStride Research Team

What This Clause Requires

Service contracts above $2,500 must pay service employees at least the wage rates and fringe benefits determined by the Secretary of Labor in applicable Wage Determinations.

Official Regulation Text

See 48 CFR 52.222-41 for the full regulatory text. This clause implements the McNamara-O'Hara Service Contract Act (SCA). It requires that service employees be paid no less than the wages and fringe benefits listed in the applicable Department of Labor Wage Determination for the contract's locality.
Source: eCFR, 48 CFR 52.222-41

Compliance Checklist

Pay all service employees not less than the applicable Wage Determination rates
Post the applicable Wage Determination at the worksite
Notify employees of their rights under the McNamara-O'Hara Service Contract Act
Flow down to all subcontracts for services above $2,500

Flow-Down to Subcontractors

Flow-down required

This clause must be included in subcontracts with subcontracts above $2,500 where the subcontractor will perform work covered by this clause. Typically appears in contract Sections H, I, J.

52.222-26Equal Opportunity

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.