Reading Room Document

Applicability of the Service Contract Act of 1965 to Federal Reserve Banks

This document is a memorandum opinion for the Secretary of Labor regarding the applicability of the Service Contract Act of 1965 to the Federal Reserve banks. The conclusion reached is that the Federal Reserve banks are subject to the provisions of the Service Contract Act. The document presents questions regarding the identification of the Federal Reserve banks with the United States, the argument that the Act is limited to agencies operating with appropriated funds, and the assertion that Congress must expressly include the Federal Reserve banks in the term "United States" for the Act to apply to them. The analysis of the document focuses on the hybrid character of the Federal Reserve banks, their performance of important governmental functions, and the legislative history and purpose of the Act.

September 26, 1978