Mcnamara Case Study

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McNamara O’Hara Service Contract Act Prevailing Wages
As implicated by the DOL, “the McNamara-O’Hara Service Contract Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. The Department of Labor issues wage determinations on a contract-by-contract basis in response to specific requests from contracting agencies. These determinations are incorporated into the contract.

For contracts equal to or less than $2,500, contractors are required to pay the federal …show more content…
The Act “establishes minimum wage, maximum hours, and safety and health standards for work on contracts in excess of $10,000 for the manufacturing or furnishing of materials, supplies, articles, or equipment to the U.S. government or the District of Columbia. All provisions of the PCA are administered by the Wage and Hour Division except the safety and health requirements, which are administered by the Occupational Safety and Health Administration …show more content…
In view of the aforementioned, each Prime Contractor is responsible for ensuring the following:
1. Ensure all contractors providing physical work on a site must submit weekly certified payrolls.
2. Payments of correct applicable federal prevailing wage rates and fringe benefits.
3. Wage determinations are incorporated in bid solicitations and related contracts.
4. Fringe Benefits are paid in cash or actual benefits (heath, dental, retirement, etc.) are covered at employer’s discretion.
5. Posting DOL prevailing wage rates and EEO applicable signage in Spanish and English.
6. Employer/contractors must post WH-1321 “Employee Rights under the Davis-Bacon Act” and wage determination at the project site (see pages 21-22).
7. Indicating correct trade classification of workers.
8. Ensuring workers are paid weekly.
9. Submitting certified payrolls to DC Water using Standard Form, “WH-347” (see page 16 and/or DOL web address below) via the LSC online reporting system. A sample form may be obtained at the following web address:
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