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ARTICLE · 02 FEBRUARY 2015

The Changing Landscape For Services Contractors

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Two recent developments have the potential to change the landscape for contractors providing services to the Government.

United StatesGovernment, Public Sector
Ryan Roberts
Ryan Roberts
Ryan J. Munitz
Ryan J. Munitz
Bryce Chadwick
Bryce Chadwick
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Two recent developments have the potential to change the landscape for contractors providing services to the Government.  Government contractors and subcontractors are required to comply with a host of regulations governing their hiring practices and the wages they pay and benefits they provide to certain categories of employees.  A recent Executive Order and court decision, however, have the potential to alter these requirements drastically.

Labor Regulations Applicable to Government Contractors

There are a host of labor regulations applicable to companies providing services to the Government.  For example, the Service Contract Act ("SCA"), 41 U.S.C. chapter 67, is applicable to certain Federal contracts and subcontracts that utilize service employees to furnish services in the United States.  For contracts valued at over $2,500, the SCA requires contractors to pay these employees no less than the wage rates and fringe benefits customary in their locality, as

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