Question: We do McNamara-O'Hara Service Contract Act (SCA) work for a federal agency and base our commensurate wage rates on the wage determination rate required by the contract. Do we need to adjust these rates?

Answer: No, wages based on a wage determination issued under SCA do not have to be increased unless the wage determination calls for a wage rate less than the new, increased statutory minimum wage. In such instances, commensurate wage rates must be based on a prevailing wage rate at least equal to the statutory minimum wage.