Overview
This section establishes the statutory requirement for providing minimum wages, fringe benefits, and safe working conditions for employees performing on specific federal service contracts under 41 U.S.C. chapter 67.
Key Rules
- Mandatory Compensation: Covered contracts must adhere to federally mandated minimum wage and fringe benefit levels.
- Statutory Authority: The section is governed by 41 U.S.C. chapter 67 (formerly known as the Service Contract Act).
- Applicability Criteria: Coverage is not universal; it is determined by specific definitions and exceptions outlined in the statute and its implementing regulations.
- Regulatory Integration: Compliance requirements are further defined by Department of Labor implementing regulations.
Practical Implications
- Contractors must carefully review Wage Determinations (WDs) provided in solicitations to ensure their labor pricing accounts for mandated minimums.
- Misclassifying a contract or failing to identify applicable exemptions can lead to significant retroactive pay liabilities and Department of Labor enforcement actions.