Informs contractors of applicable labor and employment laws they must comply with.
Applicability: Applies to all contracts when required by statute.
Key Requirements
Comply with Fair Labor Standards Act minimum wage and overtime requirements
Follow Davis-Bacon Act prevailing wage requirements if applicable
Comply with Immigration Reform and Control Act employment verification
Maintain records of labor compliance for audit
Common Issues & Pitfalls
Not understanding prevailing wage requirements for service contracts
Bidding without accounting for prevailing wage in cost estimates
Failing to verify employment authorization for project staff
Not maintaining wage and hour records for inspection
Contractor Guidance for Your Bid
Labor compliance is expensive and non-negotiable. If bidding a service contract over $2,500, check whether prevailing wage (Davis-Bacon) applies. Many contractors lose money on their first federal labor contracts because they underestimate wage and record-keeping costs. Build in compliance costs upfront or you'll eat the difference.