Description
Employee Rights on Government Contracts Poster – SCA & Walsh-Healey
Help satisfy applicable federal contractor posting requirements with the Employee Rights on Government Contracts Poster. This federal contractor notice provides employees with information about workplace rights under the McNamara-O'Hara Service Contract Act (SCA) and the Walsh-Healey Public Contracts Act (PCA).
Employers performing work covered by either the Service Contract Act or Walsh-Healey Public Contracts Act are required to display the applicable Employee Rights on Government Contracts notice in a prominent and accessible location where employees performing work on the covered contract can readily see it.
What Is the Employee Rights on Government Contracts Poster?
The Employee Rights on Government Contracts notice provides workers performing covered federal contract work with information about applicable wages, fringe benefits, overtime, safety and health protections, and other employee rights.
The notice addresses two major federal government contracting laws:
- McNamara-O'Hara Service Contract Act (SCA)
- Walsh-Healey Public Contracts Act (PCA)
What Is the Service Contract Act?
The McNamara-O'Hara Service Contract Act establishes labor standards for certain federal contracts whose principal purpose is to provide services in the United States through the use of service employees.
Covered service employees may be entitled to applicable minimum monetary wages and fringe benefits established under the contract's wage determination or other applicable SCA requirements.
Which Service Contracts Are Generally Covered?
The Service Contract Act generally applies to covered contracts entered into by the United States or the District of Columbia that exceed $2,500 and whose principal purpose is to furnish services in the United States through the use of service employees.
Whether the SCA applies to a particular contract depends on the nature of the contract, work performed, employees involved, location of the work, applicable exemptions, and other federal requirements.
Service Contract Act Wages and Fringe Benefits
Covered service employees generally must receive at least the applicable monetary wage and fringe benefits required by the Service Contract Act and the wage determination applicable to the contract.
The required wage may be based on prevailing wage rates for the locality or, in applicable circumstances, rates contained in a predecessor contractor's collective bargaining agreement.
When a wage determination applies, employers should ensure that the applicable wage determination is provided or posted with the Employee Rights on Government Contracts notice as required.
What Is the Walsh-Healey Public Contracts Act?
The Walsh-Healey Public Contracts Act (PCA) establishes labor standards for certain federal contracts involving the manufacture or furnishing of materials, supplies, articles, or equipment.
Under current U.S. Department of Labor guidance, the PCA generally applies to covered contracts exceeding $15,000 entered into by an agency or instrumentality of the United States for the manufacturing or furnishing of materials, supplies, articles, or equipment.
What Employee Protections Apply Under Walsh-Healey?
The Walsh-Healey Public Contracts Act establishes requirements concerning wages, overtime, safety and health, and certain employment practices for covered government contract work.
Important PCA protections include:
- Payment of at least the applicable federal minimum wage
- Overtime pay at one and one-half times the employee's regular rate for hours worked over 40 in a workweek
- Safety and health protections
- Restrictions on the employment of children under 16 on covered contract work
- Restrictions involving convict labor, subject to applicable exceptions
- Applicable recordkeeping and workplace notice requirements
Overtime Rights on Covered Government Contracts
Employees performing covered government contract work may be entitled to overtime compensation under applicable federal requirements.
Under the Walsh-Healey Public Contracts Act, covered employees generally must receive at least one and one-half times their regular rate of pay for hours worked over 40 in a workweek, subject to applicable requirements and exceptions.
Other federal wage and hour laws, including the Fair Labor Standards Act and Contract Work Hours and Safety Standards Act when applicable, may also affect overtime requirements on government contracts.
Safety and Health on Government Contract Work
Covered government contract work must be performed under applicable workplace safety and health requirements.
The safety and health provisions of the Walsh-Healey Public Contracts Act are administered by the Occupational Safety and Health Administration (OSHA), while the U.S. Department of Labor Wage and Hour Division administers the Act's other labor standards.
Employers must also comply with other OSHA standards and workplace safety requirements applicable to their operations.
Who Must Post the Employee Rights on Government Contracts Notice?
Employers performing work covered by the Walsh-Healey Public Contracts Act or McNamara-O'Hara Service Contract Act are required to display the applicable Employee Rights on Government Contracts notice.
The notice should be posted at the site where covered contract work is performed in a prominent and accessible location where employees working on the contract can readily see it.
Where Should the Government Contracts Poster Be Displayed?
The notice should be displayed at the worksite where employees perform covered government contract work.
Appropriate locations may include:
- Employee bulletin boards
- Employee entrances
- Break rooms
- Time-clock areas
- Human Resources areas
- Other conspicuous locations regularly viewed by employees performing covered contract work
Does a Service Contract Act Wage Determination Also Need to Be Posted?
When an applicable wage determination establishes the wages and fringe benefits due to employees working on a covered Service Contract Act contract, the wage determination must be provided to affected employees or posted as required with the applicable government contracts notice.
Contractors should review the specific wage determination and contract documents applicable to each federal service contract.
Employee Notice Requirements Under the Service Contract Act
Service Contract Act contractors must notify employees beginning work on a covered contract of the compensation due under the contract's applicable wage and fringe benefit provisions.
Covered contractors must also deliver to employees or post the Employee Rights on Government Contracts notice in a prominent and accessible location at the worksite.
Are SCA and Walsh-Healey the Same Law?
No. The Service Contract Act and Walsh-Healey Public Contracts Act cover different types of federal government contracts.
The Service Contract Act primarily addresses covered federal contracts for services performed by service employees, while the Walsh-Healey Public Contracts Act primarily addresses covered federal contracts for the manufacturing or furnishing of materials, supplies, articles, and equipment.
The U.S. Department of Labor combines information about both laws on the Employee Rights on Government Contracts notice.
Is the Employee Rights on Government Contracts Poster Required?
Yes, when an employer is performing work covered by the applicable Service Contract Act or Walsh-Healey Public Contracts Act requirements.
Covered employers must display the required notice where employees performing work on the covered contract can readily see it. Service Contract Act employers must also comply with applicable employee compensation-notice and wage-determination requirements.
This federal contractor notice does not replace other federal or state workplace postings that may also apply to the employer or government contract.
Other Federal Contractor Posting Requirements
Government contractors may be subject to additional workplace posting requirements depending on the contract, employees, industry, and applicable federal laws.
Additional notices may involve:
- Davis-Bacon prevailing wage requirements
- Federal contractor paid sick leave
- Equal employment opportunity requirements
- Workers with disabilities paid under applicable special minimum wage certificates
- Federal and state labor law notices
- Workplace safety and health requirements
Contractors should review each government contract and applicable federal requirements to determine the complete set of notices required at each worksite.
Federal Contractor and Workplace Compliance Resources
Labor Law Compliance Center provides employers and government contractors with federal and state labor law posters, federal contractor notices, workplace safety posters, specialty postings, and compliance resources throughout the United States. Browse our Federal Labor Law Posters for additional individual federal workplace notices and government contractor compliance products.
