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