Which piece of legislation sets wage rates and fringe benefits for service employees?

The McNamara-O'Hara Service Contract Act is the legislation that specifically sets wage rates and fringe benefits for service employees working on federal contracts. Enacted in 1965, this act mandates that service employees on contracts over a certain threshold receive wages and benefits that are at least equal to the wages determined by the Department of Labor. The Act aims to promote fair compensation for workers engaged in service contracts with the federal government, ensuring that they receive appropriate pay and benefits in line with the local prevailing wage rates.

In contrast, the Fair Labor Standards Act primarily establishes minimum wage, overtime pay eligibility, recordkeeping, and youth employment in the private sector and government jobs. The Davis-Bacon Act deals specifically with wage rates for laborers and mechanics engaged in public works projects funded by federal money, focusing more on construction. The Walsh-Healey Act also addresses wage rates, but it applies primarily to contracts for the manufacture or furnishing of goods to the U.S. government, rather than to service employees. Therefore, the McNamara-O'Hara Service Contract Act correctly identifies the framework for wage rates and benefits for service sector employees under federal service contracts.