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Service Contract Act (SCA)

Companies with government service contracts may face complicated regulatory hurdles and increased scrutiny brought on by the McNamara-O’Hara Service Contract Act of 1965 (the “SCA”). Due to the government’s increased focus on salaries paid by government contractors, this regulation has recently come to the forefront and become a key enforcement tool used by the government. The Wage and Hour Division of the Department of Labor (“DOL”) strictly enforces the SCA and has the authority to impose severe penalties if it believes violations have occurred.

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