Government Contract Labor Standards Claim Service Contract Act Claim A Government Contract Labor Standards Claim (in the U.S., a Service Contract Act claim) is a legal assertion that an employer has failed to pay prevailing wages and benefits to employees working on federal service contracts. In the U.S., those are required by the McNamara-O'Hara Service Contract Act. Such claims typically seek compensation for underpaid wages and benefits, as well as enforcement of labor standards.