Join 1000s of HR Professionals
FREE MEMBERSHIP

HR Education & Training
Access to Forms & Tools
HR Articles & White Papers
HR News, Jobs, HR Blogs & More

Walsh-Healy Public Contracts Act

The Walsh-Healey Act requires employers with government contracts to pay prevailing wages and time and one-half the basic rate for hours in excess of 40 in a week if the contract is:

(a) for manufacturing or for furnishing materials, and

(b) if any single contract exceeds $10,000 (the total price stated in the contract plus freight charges).

Some important concepts are the following:

1. "Open end" contracts and contracts for an indefinite amount are covered unless it is known in advance that the total cost will be less than $10,000.
2. The act applies to all primary contractors and to subcontractors unless specifically exempted. The exemptions are open market purchases, perishables, certain agricultural products, transportation by common carrier, public utilities, service contracts, and rental contracts.
3. All employees who work on the furnished materials are covered - all who make, fabricate, assemble, handle, supervise, ship, etc. - and those whose work is necessary to perform the contract. If the employer does not segregate the employees who work on governments contracts from those who do not, all are covered.
4. Executive, administrative, professional, office and custodial workers are exempt.
5. No one may be employed who is under age 16. Violations of this provision result in a fine of $10 per day per child.
6. Serious and willful violations can result in debarment from all government contracts for three years.
7. In addition to records required by the FLSA, a record must be kept on injury frequency rates, the sex of each employee and the identity of the contract on which each employee works.
8. The Act requires payment of "prevailing wages," but when a court order required the Secretary of Labor to disclose the basis for setting the wage, the Secretary set the prevailing wage at the same level as minimum wage under the FLSA. In general, the overtime requirements are essentially identical to the FLSA as well.
9. Convict labor is prohibited.
10. The contractor's principals can be held individually liable for violations, and a contractor can be held liable for violations of a subcontractor.
11. Standards for health and safety are established. Violations of the standards can result in canceling the contract and debarment for three years.

Get access to all Walsh-Healy Public Contracts Act material. Click here to become a member: www.hrresource.com/account.php

Related Products