The Act, in section 2(b)(1), provides generally that no contractor
or subcontractor under any Federal contract subject to the Act shall pay
any employee engaged in performing work on such a contract less than the
minimum wage specified under section 6(a)(1) of the Fair Labor Standards
Act. Section 2(a)(1) provides that the minimum monetary wage specified
in any such contract exceeding $2,500 shall in no case be lower than
this Fair Labor Standards Act minimum wage. Section 2(b)(1) is a
statutory provision which applies to the contractor or subcontractor
without regard to whether it is incorporated in the contract; however,
Secs. 4.6 and 4.7 provide for inclusion of its requirements in covered
contracts and subcontracts. Because this statutory requirement specifies
no fixed monetary wage rate and refers only to the minimum wage
specified under section 6(a)(1) of the Fair Labor Standards Act, and
because its application does not depend on provisions of the contract,
any increase in such Fair Labor Standards Act minimum wage during the
life of the contract is, on its effective date, also effective to
increase the minimum wage payable under section 2(b)(1) to employees
engaged in performing work on the contract. The minimum wage rate under
section 6(a)(1) of the Fair Labor Standards Act is $3.10 per hour
beginning January 1, 1980, and $3.35 per hour after December 31, 1980.
