The Department of Labor's Wage and Hour Division released revised Service Contract Act (SCA) wage determinations in January 2026, reflecting prevailing wage survey data from late 2025. Affected contractors — those performing services on federal contracts covered by 41 U.S.C. Chapter 67 — must incorporate the new rates as directed by their Contracting Officer, typically via a unilateral contract modification. Coverage from DOL Wage and Hour Division.
Key rate changes
- IT support technicians (WD code 15000): average 6.2% increase across major metro areas
- Administrative and clerical occupations: 4.1% average increase
- Security guard and protective services: 5.8% average, driven by labor market tightness in the DC metro
- CONUS high-cost areas (DC, NYC, San Francisco, Boston) saw the largest absolute increases
What contractors must do
SCA compliance is not optional and does not require employee consent. When DOL updates a determination and your contract is modified to incorporate it:
- Update payroll systems within 30 days of receiving the contract modification — late implementation triggers back-pay liability
- Post the new wage determination at the worksite (or distribute electronically for remote workers)
- Check if your fringe benefit package still meets the new required fringe rate — DOL's 2026 fringe rate rose to $5.36/hour worked
- For fixed-price contracts, you may be entitled to an equitable adjustment — request it in writing within the timeframe your contract specifies