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What difference does the Walsh-Healey Act make? (2 answers)

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This question is about The Walsh-Healey Public Contracts Act - Department of Labor

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What impact does Walsh-Healey have by requiring all covered contracts/employees to be paid federal minimum wage since all workers (with few exceptions) must be paid federal minimum wage anyway?

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Sep 25, 2012

When understanding the term "minimum wage" you need to understand which Act you are referencing. The Fair Labor Standards Act established the national minimum wage. A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. The FLSA applies to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce, unless an exemption from coverage applies. So if I work at Walmart, I am guaranteed this minimum wage as long as I am a non-exempt employee.

The Walsh-Healey Act or Walsh–Healey Public Contracts Act, applies to covered contracts for the manufacture or furnishing of materials, supplies, articles or equipments in an amount that exceeds $15,000.
Walsh-Healey is different than the FLSA as it sets the minimum wage equal to the prevailing wage as determined by the Secretary of Labor. Non-exempt employees who work on covered contracts are guaranteed to be paid the prevailing wage rate as determined by the Department of Labor. This prevailing wage rate is usually higher than the FLSA minimum wage, and is based on DOL's analysis of what the prevailing wages are for a given location, or can be based on a union's collective bargaining agreement. The Department of Labor website has prevailing wage rates for non-exempt employees covered under the Walsh-Healey Act (supplies), the Service Contract Act (services), and the Davis Bacon Act (construction). Contractors working on covered Federal contracts must pay at least the minimum applicable prevailing wage and benefits, covered by the Act(s), and as set forth by the DoL, for all non-exempt employees working on the contract regardless of the FLSA minimum rate.

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Sep 25, 2012

When understanding the term "minimum wage" you need to understand which Act you are referencing. The Fair Labor Standards Act established the national minimum wage. A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. The FLSA applies to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce, unless an exemption from coverage applies. So if I work at Walmart, I am guaranteed this minimum wage as long as I am a non-exempt employee.

The Walsh-Healey Act or Walsh–Healey Public Contracts Act, applies to covered contracts for the manufacture or furnishing of materials, supplies, articles or equipments in an amount that exceeds $15,000.
Walsh-Healey is different than the FLSA as it sets the minimum wage equal to the prevailing wage as determined by the Secretary of Labor. Non-exempt employees who work on covered contracts are guaranteed to be paid the prevailing wage rate as determined by the Department of Labor. This prevailing wage rate is usually higher than the FLSA minimum wage, and is based on DOL's analysis of what the prevailing wages are for a given location, or can be based on a union's collective bargaining agreement. The Department of Labor website has prevailing wage rates for non-exempt employees covered under the Walsh-Healey Act (supplies), the Service Contract Act (services), and the Davis Bacon Act (construction). Contractors working on covered Federal contracts must pay at least the minimum applicable prevailing wage and benefits, covered by the Act(s), and as set forth by the DoL, for all non-exempt employees working on the contract regardless of the FLSA minimum rate.
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Jun 20, 2014

Please note as of 29 MAY 2014 (FAC 2005-73) (Positive law Codification of Title 41) the Walsh-Healey Public Contracts Act is now known as the 'Contracts for Materials, Supplies, Articles, and Equipment Exceeding $15,000 statute' per 41 USC Chapter 65.