The Walsh-Healey Public Contracts Act (PCA) applies to contractors with 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. The PCA covers employees who produce, assemble, handle, or ship goods under these contracts. 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.
The McNamara-O’Hara Service Contract Act (SCA) covers contracts entered into by federal and District of Columbia agencies that have as their principal purpose furnishing services in the United States through the use of “service employees.” The definition of “service employee” includes any employee engaged in performing services on a covered contract other than a bona fide executive, administrative, or professional employee who meets the exemption criteria set forth in 29 CFR Part 541.
Posting Requirements
Every employer performing work covered by the PCA or the SCA (contractors or sub-contractors engaged in a contract with the United States or the District of Columbia in excess of $2,500 the principal purpose of which is to furnish services in the U.S. through the use of service employees) is required to post a notice of the compensation required (including, for service contracts, any applicable wage determination) in a prominent and accessible location at the work-site where it may be seen by all employees performing on the contract.