What requirement does the McNamara-O'Hara Service Contract Act impose regarding pay scales?

What requirement does the McNamara-O'Hara Service Contract Act impose regarding pay scales?

• A. Pay must be based on federally mandated rates
• B. Pay must be based on subscription services
• C. Pay scales are required to be based on "prevailing wages"
• D. Pay does not need to be reported

Answer: (C)

The McNamara-O'Hara Service Contract Act establishes that contractors and subcontractors performing services on federal contracts must pay their employees no less than the prevailing wage rates and fringe benefits determined by the U.S. Department of Labor. This requirement aims to ensure that workers are compensated fairly in relation to local market conditions for similar jobs. By mandating that pay scales be based on "prevailing wages," the Act helps to level the playing field for employers and protect the income rights of workers engaged in service contract work with the federal government. This focus on prevailing wages acknowledges that different geographic areas may have varying costs of living and local wage standards, thereby providing a system that adapts to those differences while maintaining federally funded jobs' quality and competitiveness.

The McNamara-O'Hara Service Contract Act establishes that contractors and subcontractors performing services on federal contracts must pay their employees no less than the prevailing wage rates and fringe benefits determined by the U.S. Department of Labor. This requirement aims to ensure that workers are compensated fairly in relation to local market conditions for similar jobs. By mandating that pay scales be based on "prevailing wages," the Act helps to level the playing field for employers and protect the income rights of workers engaged in service contract work with the federal government.

This focus on prevailing wages acknowledges that different geographic areas may have varying costs of living and local wage standards, thereby providing a system that adapts to those differences while maintaining federally funded jobs' quality and competitiveness.