Overview
This section outlines the statutory requirement for overtime compensation, mandating that laborers and mechanics on covered federal contracts receive premium pay for work exceeding 40 hours per workweek.
Key Rules
- Workweek Limit: The standard workweek is capped at 40 hours.
- Overtime Compensation: Any hours worked beyond 40 in a single workweek must be paid at a rate of at least 1 1/2 times the basic rate of pay.
- Applicability: The rule specifically applies to any "laborer or mechanic" performing work contemplated by the contract.
- Mandatory Clause: The statute requires that specific language reflecting these requirements be included in covered contracts.
Practical Implications
- Contractors must maintain precise payroll records and time-tracking systems to ensure manual laborers are correctly compensated for overtime.
- Failure to comply with these overtime standards can result in significant liability, including withholding of contract funds to satisfy unpaid wages and potential liquidated damages.