United States Department of Labor

Wage and Hour Division (WHD)

Compliance Assistance - Walsh-Healey Public Contracts Act (PCA)

Overview

The Walsh-Healey Public Contracts Act (PCA), as amended, establishes minimum wage, maximum hours, and safety and health standards for work on contracts in excess of $15,000 for the manufacturing or furnishing of materials, supplies, articles, or equipment to the U.S. government or the District of Columbia. All provisions of the PCA are administered by the Wage and Hour Division except the safety and health requirements, which are administered by the Occupational Safety and Health Administration (OSHA).

The PCA does not apply to certain contracts, including the following:

• Certain “open market” purchases;
• Purchases of perishables;
• Certain agricultural purchases;
• Contracts for public utility services and certain transportation and communication services;
• Supplies manufactured or furnished outside the U.S. (including Puerto Rico) or the Virgin Islands;
• Contracts administratively exempted by the Secretary of Labor in special circumstances.

Covered workers must be paid not less that the Fair Labor Standards Act (FLSA) federal minimum wage and overtime pay of at least one and one-half times the worker’s regular rate of pay for all hours worked in excess of 40 in a workweek.

The contractor must display copies of the Service Contract Act/Walsh-Healey Public Contracts Act Poster during the period that covered work is being performed on the contract.

Guidance

• Prevailing Wage Resource Book (September 2013)
• All Agencies Memorandum (AAMs)
• State Labor Laws
• Employment Law Guide – Walsh-Healey Public Contracts Act
• Employment Law Guide – Fair Labor Standards Act Minimum Wage and Overtime Pay

Fact Sheets

• Fact Sheet 44 — Visits to Employers (PDF)
• Additional Fact Sheets

Workplace Posters

• Service Contract Act/Walsh-Healey Public Contracts Act
• Spanish Version
• Other Workplace Posters

Interpretive Guidance

• Field Operations Handbook
• Chapter 13 — Coverage of the Public Contracts Act (PDF)

Applicable Laws and Regulations

• Laws
• Walsh-Healey Public Contracts Act — 41 U.S.C. § 35 et seq..
• Fair Labor Standards Act of 1938, as Amended — 29 U.S.C. 201 et seq.
• Regulations
• PCA
• 41 C.F.R. Part 50-201 — General Regulations
• 41 C.F.R. Part 50-202 — Minimum Wage Determinations
• 41 C.F.R. Part 50-203 — Rules of Practice
• 41 C.F.R. Part 210 — Statements of General Policy and Interpretation Not Directly Related to Regulations
• FLSA
• 29 C.F.R. Part 541 — Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Computer and Outside Sales Employees
• 29 C.F.R. 778 — Overtime Compensation
• 29 C.F.R. 785 — Hours Worked
• Other Fair Labor Standards Act Regulations

Civil Money Penalty Inflation Adjustments

Starting in 2016, agencies across the federal government must adjust their penalties for inflation each year. Below is a table that reflects the adjustments that have occurred for penalties under this statute. For more information on the penalty adjustments, go here.