HR Support with Federal Government Contract Laws

Editor's Note: Contracts with Uncle Sam can prove lucrative, but they usually come with some strings attached.

Michael CardmanOverview: Almost all employers must comply with federal laws that require a minimum wage for most workers and establish other workplace rules. But many employers that enter into contracts with the federal government or the District of Columbia must also comply with additional laws that dictate prevailing wages and working conditions.

The Walsh-Healey Public Contracts Act applies to contracts of more than $10,000 for the manufacture or purchase of goods and supplies; the McNamara-O'Hara Service Contract Act (SCA) applies to contracts of more than $2,500 for services; and 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.

Trends: An Executive Order requires that employees of most federal contractors be paid a minimum wage of $10.20 per hour. This wage will be adjusted for inflation on January 1, 2018.

Author: Michael Cardman, Legal Editor

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HR and legal considerations for employers regarding the federal contracts.