29 C.F.R. § 4.104 What the Act Provides, Generally

• Library: Code of Federal Regulations
• Edition: 2023
• Currency: Current through October 31, 2023

The provisions of the Act apply to contracts, whether negotiated or advertised, the principal purpose of which is to furnish services in the United States through the use of service employees. Under its provisions, every contract subject to the Act (and any bid specification therefor) entered into by the United States or the District of Columbia in excess of $2,500 must contain stipulations as set forth in §4.6 of this part requiring:

(a) That specified minimum monetary wages and fringe benefits determined by the Secretary of Labor (based on wage rates and fringe benefits prevailing in the locality or, in specified circumstances, the wage rates and fringe benefits contained in a collective bargaining agreement applicable to employees who performed on a predecessor contract) be paid to service employees employed by the contractor or any subcontractor in performing the services contracted for;

(b) that working conditions of such employees which are under the control of the contractor or subcontractor meet safety and health standards; and

(c) that notice be given to such employees of the compensation due them under the minimum wage and fringe benefits provisions of the contract. Contractors performing work subject to the Act thus enter into competition to obtain Government business on terms of which they are fairly forewarned by inclusion in the contract. ( Endicott Johnson Corp. v. Perkins,317 U.S. 501, 507(1943).) The Act's purpose is to impose obligations upon those favored with Government business by precluding the use of the purchasing power of...