22.301
Statutory requirement
Federal contracts must ensure laborers and mechanics are paid overtime (1.5x pay) for hours worked over 40 per week, as required by law.
Overview
FAR 22.301 establishes the statutory requirement that certain federal contracts must include a clause limiting the number of hours laborers or mechanics can work in a week without overtime compensation. Specifically, it mandates that no laborer or mechanic may be required or allowed to work more than 40 hours in any workweek unless they are paid at least one and one-half times their basic rate of pay for all hours worked over 40. This requirement is rooted in the Contract Work Hours and Safety Standards Act (CWHSSA) and is designed to protect workers from excessive hours without fair compensation.
Key Rules
- Overtime Limitation
- Laborers and mechanics cannot be required or permitted to work over 40 hours per week on covered contracts unless paid overtime.
- Overtime Pay Rate
- Overtime must be compensated at not less than 1.5 times the basic rate of pay for all hours worked over 40 in a workweek.
Responsibilities
- Contracting Officers: Must ensure the required clause is included in applicable contracts and monitor compliance.
- Contractors: Must comply with the overtime requirements and ensure all laborers and mechanics are properly compensated for overtime work.
- Agencies: Responsible for oversight and enforcement of compliance with these statutory requirements.
Practical Implications
- This regulation exists to ensure fair labor standards and prevent worker exploitation on federal contracts.
- Contractors must carefully track hours worked by laborers and mechanics and ensure overtime is paid correctly.
- Failure to comply can result in penalties, contract disputes, or debarment from future federal contracts.