(a) Fair Labor Standards Act. Although provision has not been made
for insertion in Government contracts of stipulations requiring
compliance with the overtime provisions of the Fair Labor Standards Act,
contractors and subcontractors performing contracts subject to the
McNamara-O'Hara Service Contract Act may be required to compensate their
employees working on or in connection with such contracts for overtime
work pursuant to the overtime pay standards of the Fair Labor Standards
Act. This is true with respect to employees engaged in interstate or
foreign commerce or in the production of goods for such commerce
(including occupations and processes closely related and directly
essential to such production) and employees employed in enterprises
which are so engaged, subject to the definitions and exceptions provided
in such Act. Such employees, except as otherwise specifically provided
in such Act, must receive overtime compensation at a rate of not less
than 1\1/2\ times their regular rate of pay for all hours worked in
excess of the applicable standard in a workweek. See part 778 of this
title. However, the Fair Labor Standards Act provides no overtime pay
requirements for employees, not within such interstate commerce coverage
of the Act, who are subject to its minimum wage provisions only by
virtue of the provisions of section 6(e), as explained in Sec. 4.180.
(b) Contract Work Hours and Safety Standards Act. (1) The Contract
Work Hours and Safety Standards Act (40 U.S.C. 327-332) applies
generally to Government contracts, including service contracts in excess
of $100,000, which may require or involve the employment of laborers and
mechanics. Guards, watchmen, and many other classes of service employees
are laborers or mechanics within the meaning of such Act. However,
employees rendering only professional services, seamen, and as a general
rule those whose work
is only clerical or supervisory or nonmanual in nature, are not deemed
laborers or mechanics for purposes of the Act. The wages of every
laborer and mechanic for performance of work on such contracts must
include compensation at a rate not less than 1\1/2\ times the employees'
basic rate of pay for all hours worked in any workweek in excess of 40.
Exemptions are provided for certain transportation and communications
contracts, contracts for the purchase of supplies ordinarily available
in the open market, and work, required to be done in accordance with the
provisions of the Walsh-Healey Act.
(2) Regulations concerning this Act are contained in 29 CFR part 5
which permit overtime pay to be computed in the same manner as under the
Fair Labor Standards Act.
(c) Walsh-Healey Public Contracts Act. As pointed out in Sec. 4.117,
while some Government contracts may be subject both to the McNamara-
O'Hara Service Contract Act and to the Walsh-Healey Public Contracts
Act, the employees performing work on the contract which is subject to
the latter Act are, when so engaged, exempt from the provisions of the
former. They are, however, subject to the overtime provisions of the
Walsh-Healey Act if, in any workweek, any of the work performed for the
employer is subject to such Act and if, in such workweek, the total
hours worked by the employee for the employer (whether wholly or only
partly on such work) exceed 40 hours in the workweek. In any such
workweek the Walsh-Healey Act requires payment of overtime compensation
at a rate not less than 1\1/2\ times the employee's basic rate for such
weekly overtime hours. The overtime pay provisions of the Walsh-Healey
Act are discussed in greater detail in 41 CFR part 50-201.
[48 FR 49762, Oct. 27, 1983, as amended at 51 FR 12265, Apr. 9, 1986; 61
FR 40716, Aug. 5, 1996]
