§6703 Required contract terms

Summary

Contracts and bid notices covered by this law must say what the minimum wage and fringe benefits are for each type of service worker. The wage is set by the Secretary or the Secretary’s representative using local prevailing rates or the rates in any collective-bargaining agreement (including future raises agreed to at arm’s length), and it cannot be lower than the minimum in section 6704. Fringe benefits must be set the same way and cover things like medical care, pensions, workers’ compensation or insurance, unemployment, life/disability/accident insurance, vacation and holiday pay, apprenticeship costs, and other bona fide benefits not already required by law. The contractor may meet the fringe-benefit rule by offering equivalent benefits or by making cash payments under rules the Secretary creates. Contracts must also say that work will not be done in unsanitary or dangerous conditions under the contractor’s control. When a worker starts, the contractor or subcontractor must give the worker a notice (or post it at the worksite) showing the required pay and benefits on a form made by the federal agency. The contract must list the rates that would apply under sections 5332 or 5341 of title 5, and the Secretary must consider those rates when deciding wages and benefits.