A different minimum wage applies for work performed on or in connection with certain Federal contracts. This minimum wage is $10.60 per hour; tipped employees to whom this applies must be paid a minimum of $7.40 per hour.

If you’re performing work on a Federal contract for construction, alteration or repair in excess of $2,000, you must pay your workers on the contract the locally prevailing wages and fringe benefits for all hours worked on the site of the work. This is a combination of the basic hourly rate and any fringe benefits listed in a wage determination.

You may be required to pay service employees no less than the wage rates and fringe benefits found prevailing in the locality, or the rates and fringe benefits (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. This applies to prime contracts in excess of $2,500 and their subcontracts; for prime contracts equal to or less than that amount, the Federal minimum wage generally applies.

For prime contracts in excess of $150,000, you must also pay laborers and mechanics, including guards and watchmen, at least one and one-half times their basic rate of pay for all hours worked over 40 in a workweek. The overtime provisions of other Federal labor laws may also apply to covered contracts.

In addition to these requirements, generally you can’t discriminate against job candidates or employees based on several factors.

Questions? We’re here to help.

We are committed to helping you understand your responsibilities as an employer. Many questions about your responsibilities may be answered by using the following elaws (Employment Laws Assistance for Workers and Small Businesses) Advisor:

For additional assistance, please contact the Wage and Hour Division (WHD) of the U.S. Department of Labor:

Our assistance is free and confidential.

Learn about WHD