Passed in 1965, the Service Contract Act applies to federal contracts for services in excess of $2,500 and requires service contractors to pay minimum wages and fringe benefits as established to be prevailing by the Secretary of Labor. As with the Davis–Bacon Act, pay scales are based on “prevailing” wages, which is typically interpreted by the government as union-equivalent wages and benefits in the local labor market. The act also includes certain safety standards. The US Department of Labor is the enforcing agency of the Service Contract Act.
Recordkeeping and posting requirements, government investigations and hearings, court actions, and blacklisting of violators have been established as enforcement mechanisms for the Davis–Bacon, Walsh–Healey, and Service Contract Acts.