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The Service Contract Act explained for janitorial contracts
The McNamara-O’Hara Service Contract Act (SCA) sets the minimum wages and fringe benefits owed to service employees on federal service contracts, and janitorial work is one of the examples the regulations name. On a covered contract over $2,500, the Department of Labor’s wage determination is attached to the contract and fixes the hourly rate for each job title, such as 11150 Janitor, plus health and welfare, vacation and holiday terms. Here is what the law covers, how to read a wage determination and where the executive orders stand, as of November 2026.
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What the Service Contract Act requires
It requires federal service contractors to pay at least the locally prevailing wages and fringe benefits that DOL sets, to tell workers what those are, and to keep records that prove it. The FAR implements the law as 41 U.S.C. chapter 67, Service Contract Labor Standards, formerly the Service Contract Act of 1965, together with DOL regulations in 29 CFR parts 4, 6, 8 and 1925. DOL’s Wage and Hour Division enforces it and still uses the McNamara-O’Hara name on its SCA page.
Where a predecessor contractor had a collective bargaining agreement, the rates in that agreement can set the floor instead of the locality rates. The SCA covers federal and District of Columbia contracts; California’s own wage rules for public work are a separate subject, covered in our guide to California prevailing wage for service contracts.
Which contracts are covered
- Principal purpose test: the Act reaches contracts whose principal purpose is furnishing services in the United States through service employees, whether negotiated or advertised. DOL’s regulations say there is no hard and fast rule for principal purpose; the facts decide, not the contract’s name or form.
- Named examples: congressional reports cited in the regulations list custodial and janitorial service among the examples of covered contracts.
- Over $2,500: each covered contract and its bid specification above $2,500 carries the labor standards clauses with DOL’s wage and fringe benefit minimums. At $2,500 or less, the Fair Labor Standards Act minimum wage applies. The FAR micro-purchase threshold for these services is likewise $2,500 rather than the general $15,000 (FAR 2.101, FAC 2026-01).
- Over $100,000: the Contract Work Hours and Safety Standards Act also applies, requiring time and a half for laborers and mechanics after 40 hours in a workweek.
How to read an SCA wage determination
The wage determination (WD) attached to your contract is the one that governs, so start there rather than with a search. DOL issues WDs to contracting agencies and publishes them on SAM.gov’s wage determinations pages. Reading one for janitor classifications goes in this order:
- Check the header: WD number, revision number, date of last revision and the counties covered. A bid should price to the revision in the solicitation.
- Find the occupation code: cleaning titles include 11150 Janitor, 11240 Maid or Houseman, 11210 Laborer, Grounds Maintenance and 11090 Gardener.
- Match duties, not job titles: duties are those in the SCA Directory of Occupations, Fifth Edition (Revision 1), September 2015, unless the WD says otherwise.
- Read the fringe section: health and welfare, vacation and holidays sit below the rate table.
- Read the notes: paid sick leave, the minimum-wage executive order, uniform allowances and conformance appear on every WD.
- Request a conformance if a job is missing: the contractor uses Standard Form 1444 (SF-1444) to ask for an added classification and rate.
Janitor rates on four Northern California wage determinations
These hourly rates for 11150 Janitor are examples only, each tied to the revision read on SAM.gov in November 2026. Rates differ by county and change with every revision.
| Wage determination | Area | Revision date | 11150 Janitor, hourly |
|---|---|---|---|
| WD 2015-5631, Rev. 29 | El Dorado, Placer, Sacramento and Yolo, California | 8/27/2026 | $19.93 |
| WD 2015-5623, Rev. 31 | Alameda and Contra Costa, California | 8/20/2026 | $21.24 |
| WD 2015-5637, Rev. 34 | San Francisco and San Mateo, California | 8/20/2026 | $21.24 |
| WD 2015-5641, Rev. 32 | Santa Clara, California | 8/20/2026 | $21.09 |
Health and welfare, vacation and holidays
Fringe benefits are owed on top of the hourly rate. On the August 2026 WD revisions above, health and welfare is $5.92 an hour, up to 40 hours a week ($236.80 a week or $1,026.13 a month). A lower $5.42 rate applies only to contracts also covered by EO 13706 paid sick leave, and the contractor gets no SCA credit for that sick leave.
- Hours counted: health and welfare is generally owed on all hours paid, including paid vacation, sick and holiday hours, up to 40 a week and 2,080 a year on each contract, unless the WD says otherwise.
- Vacation on WD 2015-5631 Rev. 29: two weeks after one year of service, three weeks after five years and four weeks after fifteen years. Service counts continuous work for predecessor contractors doing similar work at the same federal facility.
- Holidays on WD 2015-5631 Rev. 29: at least eleven named paid holidays a year, from New Year’s Day to Christmas, with Juneteenth included. A contractor may swap in another paid day off under a plan employees are told about, and a worker on the job any part of a holiday week generally gets the holiday benefit.
- Other WDs differ: one New York WD lists twelve holidays and up to five weeks of vacation after twenty years.
- Ways to pay: equivalent bona fide benefits or cash payments meet the obligation (29 CFR 4.177).
- Uniforms: uniform costs cannot be shifted to workers where that would push pay below the WD rate; the WD sets out DOL’s uniform allowance standards.
Paid sick leave and the executive orders, as of November 2026
One order still applies, one was revoked and one older order shows up on current WDs.
| Order | Status |
|---|---|
| EO 13706, paid sick leave | Applies to SCA contracts solicited and entered into on or after January 1, 2017: 1 hour of paid sick leave per 30 hours worked, up to 56 hours a year |
| EO 14026, contractor minimum wage (April 27, 2021) | Revoked by EO 14236 of March 14, 2025; DOL says it no longer enforces the order or its rule at 29 CFR part 23 |
| EO 13658, earlier contractor minimum wage | The August 2026 WDs carry its note: it generally applies to SCA contracts entered into from January 1, 2015 through January 29, 2022 that were not renewed or extended on or after January 30, 2022 |
| EO 14055, nondisplacement (November 18, 2021) | Revoked by EO 14148 of January 20, 2025; DOL rescinded its rule at 29 CFR part 9 on December 22, 2025 (90 FR 59734) |
Read the notes on your own WD for the order that applies to your contract dates.
Taking over a contract from another company
Section 4(c) is the successor rule. A contractor that takes over an SCA contract for substantially the same services must pay at least the wages and fringe benefits in the predecessor’s collective bargaining agreement, including accrued benefits and scheduled increases, unless DOL finds after a hearing that they are substantially at variance with local prevailing rates. Vacation eligibility on the WD also counts years served under earlier contractors at the same facility, so ask for the incumbent workforce’s service dates before pricing. With EO 14055 rescinded, there is no federal right of first refusal for the incumbent’s workers under that order; California’s state law on janitor retention is covered in our guide on how to bid on government cleaning contracts.
Posting, records and safe working conditions
- Notice: give each service employee the required wage and fringe benefits when work starts, or post the WD, and post DOL’s poster WH-1313 where workers can see it at the worksite.
- Records: contractors and subcontractors keep, for three years after the work ends, each worker’s name, address and Social Security number, classification, wage and fringe rates, daily and weekly hours and pay, and deductions, open to Wage and Hour.
- Safety: contract work may not be done in unsanitary, hazardous or dangerous conditions under the contractor’s control, and DOL’s safety and health standards at 29 CFR part 1925 apply.
The cleaning scope, schedule and supply terms still belong in the contract itself; our guide to janitorial service agreements covers those parts.
When the rules are missed
The party responsible for a violation owes the underpayments, and payments due on that contract, or on another contract between the same contractor and the government, can be withheld to cover them (29 CFR 4.187). A firm found in violation is listed as ineligible for federal contracts for three years unless the Secretary of Labor recommends relief for unusual circumstances, and the listing reaches firms in which the violator has a substantial interest. This page is general information, not legal advice; the contract, its WD and DOL decide what applies.
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Continental provides janitorial, porter, floor care, grounds and maintenance crews for commercial facilities, with Northern California roots and nationwide reach. If you manage a building and need a written scope and price, request a quote.
A few useful answers
Common questions
What is an SCA wage determination?
It is the Department of Labor’s list of minimum hourly rates and fringe benefits for each job title in a given area. The current WD for the contract’s location is attached to the contract, and WDs are published on SAM.gov.
Does the Service Contract Act cover janitorial contracts?
Yes, when the contract’s principal purpose is providing services through service employees. Congressional reports cited in DOL’s regulations name custodial and janitorial service among the examples, and contracts over $2,500 carry the wage and fringe clauses.
What is the SCA health and welfare rate?
On the August 2026 WD revisions, $5.92 an hour up to 40 hours a week, or $5.42 on contracts also covered by EO 13706 paid sick leave. The rate on your own contract’s WD is the one that governs.
Is the EO 14026 contractor minimum wage still in effect?
No. EO 14236 revoked it on March 14, 2025, and DOL says it no longer enforces EO 14026 or its rule. Current WDs carry a note on the older EO 13658 instead.
What happens when a janitorial job is not on the WD?
The contractor files Standard Form 1444 to conform the missing job, asking DOL to add the classification and a rate to the contract.
How long must SCA payroll records be kept?
Three years from completion of the work. They include each worker’s classification, rates, hours, pay and deductions, and must be available to the Wage and Hour Division.