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elaws - employment laws assistance for workers and small businesses - FLSA Section 14(c) Advisor

Walsh-Healey Public Contracts Act (PCA) Coverage

The Walsh-Healey Public Contracts Act (PCA), enacted in 1936, applies to most contracts in excess of $10,000 entered into by any agency of the United States Government for the manufacturing or furnishing of materials, supplies, articles or equipment. Many organizations that provide employment to workers with disabilities hold such supply contracts.

The PCA sets labor standards regarding minimum wages for employees working on such contracts, prohibits the employment of convict labor and child labor except under certain conditions, and provides for safety and health standards.

The prevailing wage rate on which a special minimum wage paid to a worker with a disability who is performing work subject to the PCA is based may not be less than the full Federal minimum wage. However, if the FLSA also applies to the worker, the prevailing wage under the FLSA will probably be higher than the rate required under the PCA. When this is so, the worker with a disability must receive a commensurate rate based on the higher of the two prevailing wage rates.

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FLSA Section 14(c) Advisor | Wage and Hour Division