22.1002-4
Application of the Fair Labor Standards Act minimum wage
All employees working on any government service contract must be paid at least the federal minimum wage, regardless of contract size.
Overview
- FAR 22.1002-4 mandates that all contractors and subcontractors performing under a service contract, regardless of contract value, must pay employees working on the contract at least the minimum wage established by section 6(a)(1) of the Fair Labor Standards Act (FLSA). This requirement applies universally to all service contracts covered by the Service Contract Labor Standards statute, ensuring wage protections for covered workers.
Key Rules
- Minimum Wage Requirement
- Contractors and subcontractors cannot pay employees less than the FLSA minimum wage for any work performed under a covered service contract.
- No Dollar Threshold
- The rule applies to all service contracts, regardless of the contract amount.
Responsibilities
- Contracting Officers: Must ensure contracts include appropriate wage provisions and monitor compliance.
- Contractors: Must pay at least the FLSA minimum wage to all employees working on the contract, regardless of contract size.
- Agencies: Responsible for oversight and enforcement of wage requirements.
Practical Implications
- This regulation exists to protect workers from being paid below the federal minimum wage on government service contracts.
- Contractors must track and document wage payments to ensure compliance.
- Noncompliance can result in penalties, contract termination, or debarment.