Supply and Equipment Contracts

Editor's Note: Employers that enter into supply and equipment contracts with the federal government must pay their workers prevailing wages and fringe benefits.

Michael CardmanOverview: The Walsh-Healey Public Contracts Act regulates federal contracts of more than more than $10,000 for the manufacture or purchase of goods and supplies. Contractors and subcontractors working under the Act must pay their workers at least the locally prevailing wages as determined by the U.S. Department of Labor (DOL) and overtime for all hours beyond 40 in a workweek. The Act also establishes requirements for working conditions, recordkeeping and employee notices.

Trends:Contractors that manufacture or furnish materials, supplies, articles or equipment to the federal government under the Walsh-Healey Public Contracts Act would not be subject to the upcoming $10.10 minimum wage for federal contractors under rules proposed by the DOL.

Author: Michael Cardman, Legal Editor

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HR guidance on complying with the Walsh-Healey Public Contracts Act.