This toolkit provides resources to help employers understand their basic responsibilities under federal labor laws enforced and administered by the U.S. Department of Labor’s Wage and Hour Division (WHD). Some states have labor laws that afford workers additional rights and protections; employers must comply with both federal and state laws.
If you discover past wage or leave mistakes, the PAID program may be able to help.
What you should know
Here are a few key things employers with government contracts need to understand:
- The Davis-Bacon and Related Acts require payment of prevailing wages on federally funded or assisted construction projects.
- The McNamara-O’Hara Service Contract Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement.
- Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors, requires certain employers that contract with the federal government to provide employees with up to seven days of paid sick leave annually.
Use the posters below to learn more about employee rights on government contracts.
- Davis-Bacon Act poster (PDF)
- Derechos del empleado bajo la Ley Davis-Bacon(PDF) (español)
- Service Contract Act/Walsh-Healey Public Contracts Act poster (PDF)
- Derechos del empleado bajo contratos gubernamentales (PDF) (español)
- Worker rights under Executive Order 13706 (PDF), Establishing Paid Sick Leave for Federal Contractors
In addition to the laws above, many employers with government contracts are also covered by the Fair Labor Standards Act (FLSA). Here are additional tips and resources to help employers comply with the FLSA.
- Recordkeeping requirements
- Hours worked
- Overtime pay requirements
- Child labor laws for nonagricultural jobs
- Retaliation against employees is prohibited
Please visit YouthRules.gov for more information and resources.
How to Get More Information
If you have questions or need additional information, contact us online or call 1-866-487-9243 between 8 a.m. and 5 p.m. in your time zone.
Last updated on September 12, 2025.