Federal Contracts

Author: David Gabor, The Wagner Law Group

Updating Author: Brightmine Editorial Team

Summary

• Employers that enter into contracts with the federal government or the District of Columbia often must comply with laws that dictate minimum wages and working conditions for their workers.
• Different laws apply to different situations.
• The Walsh-Healey Public Contracts Act applies to contracts of more than $10,000 for the manufacture or purchase of goods and supplies. See The Walsh-Healey Act.
• The McNamara-O'Hara Service Contract Act (SCA) applies to contracts of more than $2,500 for services such as data-processing, vehicle maintenance, relocation and more. See The McNamara-O'Hara Service Contract Act.
• The Davis-Bacon Act (DBA) applies to contracts of more than $2,000 for the construction, alteration or repair of public buildings and public works. See The Davis-Bacon Act.
• Among the major requirements of these laws is that workers must receive the prevailing wage - an hourly wage that the U.S. Department of Labor determines to be the prevailing minimum for similar workers in a particular locale.
• In addition, all federal contracts must include a clause specifying a minimum wage paid to workers. See Minimum Wage for Federal Contractors.
• Note: this section covers only laws that dictate minimum wages and working conditions for federal contractors. It does not cover equal employment opportunity laws that prohibit employment discrimination by federal contractors.