This Act forces government contractors to comply with the government’s minimum wage and hour rules. It applies to those contractors who sell equipment and supplies to the government, as long as the value of contracts is at least $10,000. Under the Act, employers must pay their employees 1 ½ times their regular rate of pay for overtime hours worked within a work week, and must be paid at least the prevailing minimum wage for the same or similar type of work in the region when production is occurring.
Suppliers in areas that have statutory or regulatory exemptions, such as periodical deliveries, public utilities, and common carriers, are exempted from this Act.
The Wage and Hour Division of the Employment Standards Administration handles complaints related to the wage and benefits provisions of this Act. A contractor who does not comply with this Act can be liable for damages for the amount of unpaid wages, and can be prevented from receiving government contracts for a three-year period.