Contract Work Hours & Safety Standards Act

The Contract Work Hours and Safety Standards Act (40 U.S.C. §§ 3701–3708) requires that workers on federal construction contracts and federal service and supply contracts exceeding $100,000 be paid overtime at 1.5× their basic rate for all hours worked over 40 in a week, and that construction contractors maintain safe and healthy working conditions. The Act works alongside the Davis-Bacon Act (which sets prevailing wage rates for construction) and the Walsh-Healey Act (which covers supply contracts) to create a comprehensive labor standards framework for government contract work. Contractors who violate the overtime provisions face liquidated damages of $10 per worker per day of violation, and willful violations carry criminal penalties of up to $1,000 fine and 6 months imprisonment.

Current Law (2026)

Legal Authority

• 40 U.S.C. § 3702 — Work hours (no laborer or mechanic on a covered contract may be required or permitted to work more than 40 hours in a workweek unless compensated at 1.5× the basic rate of pay)
• 40 U.S.C. § 3703 — Report of violations and withholding (contracting officers must withhold from contractor payments sufficient to cover unpaid wages and liquidated damages; the Comptroller General or agency head distributes withheld amounts to affected workers)
• 40 U.S.C. § 3704 — Health and safety standards (Secretary of Labor must set health and safety standards for construction work on covered contracts)
• 40 U.S.C. § 3705 — Safety programs (agencies may require contractors to implement safety programs)
• 40 U.S.C. § 3708 — Criminal penalties (willful violation of hours or safety standards: up to $1,000 fine and/or 6 months imprisonment)

How It Works

The Act applies to laborers and mechanics — broadly defined to cover most manual and skilled workers but not executive, administrative, or professional employees — on federal contracts exceeding $100,000 involving construction, alteration, or repair of public buildings or public works, plus covered service and supply contracts. The overtime calculation uses the worker's regular hourly rate (which on Davis-Bacon construction contracts means the prevailing wage rate) as the base; hours over 40 in a workweek must be paid at 1.5×. The Act operates independently of the Fair Labor Standards Act and the Service Contract Act — workers on government contracts benefit from whichever law provides greater protection.

Violations carry liquidated damages of $27 per worker per calendar day on which a violation occurred (inflation-adjusted from the original $10), assessed in addition to the unpaid overtime owed. The contracting officer withholds these amounts from contract payments and distributes the unpaid wages to affected workers. For construction work, the Secretary of Labor prescribes health and safety standards supplementing OSHA requirements that are enforced through the contract — the government can withhold payments or terminate for safety violations, in addition to any OSHA penalties. Agencies may also require contractors to establish site-specific safety programs.

How It Affects You

If you're a laborer or mechanic on a federal construction or service contract: You're entitled to overtime pay at 1.5× your basic rate for all hours over 40 in a workweek — and on Davis-Bacon covered construction contracts, your "basic rate" is the prevailing wage rate, which is typically well above minimum wage. If you're working regular overtime and not being compensated correctly, file a complaint with DOL's Wage and Hour Division (dol.gov/agencies/whd). The government can withhold contract payments from your employer and distribute unpaid wages to affected workers. Willful violations by contractors carry criminal penalties of up to $1,000 and 6 months imprisonment.

If you're a contractor bidding on federal construction or service contracts over $100,000: The CWHSSA overtime requirement must be factored into your labor cost pricing. Workers who exceed 40 hours in a week must be paid 1.5× their base rate — and on Davis-Bacon covered projects, that base rate is the prevailing wage, not federal minimum wage. Overtime miscalculations are a common compliance failure during peak project phases. Liquidated damages are $27 per worker per calendar day of violation — costs that accumulate quickly on large projects with multiple workers and can be withheld directly from your contract payments.

If you're a subcontractor on a federally-funded project: The CWHSSA clause flows down through the prime contract — you're independently bound by the same overtime and safety requirements as the prime. Check your subcontract for the FAR 52.222-4 clause. Subcontractors are independently liable for violations, and the prime contractor faces additional liability if they fail to include the clause in subcontracts. If you use further sub-tier subcontractors, the clause must flow down to them as well.

If you're a federal contracting officer or project manager: Include the FAR 52.222-4 Contract Work Hours and Safety Standards clause in all covered contracts exceeding $100,000. Monitor certified payroll submissions for overtime compliance in parallel with Davis-Bacon prevailing wage compliance — the enforcement mechanisms are related. Safety violations on construction sites can justify contract termination in addition to triggering OSHA penalties. Willful or repeated overtime violations by a contractor are grounds for debarment referral.

State Variations

The Act applies to federal and federally-assisted contracts:

• State overtime laws may provide additional protections above the federal standard
• State OSHA programs (in "state plan" states) enforce workplace safety in parallel with federal requirements
• State prevailing wage laws may include their own overtime provisions for state-funded construction

Implementing Regulations

• 29 CFR Part 5 — Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction: DOL's primary implementing regulation covering overtime requirements under the Contract Work Hours and Safety Standards Act, enforcement procedures, required payroll records and certified payroll submissions, contractor and subcontractor obligations, and the process for computing and assessing liquidated damages
• 48 CFR 22.3 — FAR Subpart 22.3 — Contract Work Hours and Safety Standards Act: the acquisition regulation requiring contracting officers to include CWHSSA clauses in covered contracts, establishing applicability thresholds, specifying overtime compensation obligations, and addressing health and safety standard requirements for construction contracts
• 48 CFR 52.222-4 — Contract Work Hours and Safety Standards Act — Overtime Compensation: the standard mandatory contract clause that flows CWHSSA obligations to prime contractors and requires them to incorporate the same clause in subcontracts, mandating time-and-a-half for all hours worked in excess of 40 in a week by covered laborers and mechanics
• 48 CFR Part 22 — Application of Labor Laws to Government Acquisitions (198 sections — the complete FAR labor standards chapter, covering all labor laws that federal contracting officers must incorporate into government contracts; key subparts):
  • Subpart 22.1 — Basic Labor Policies (14s): directs contracting officers to avoid contractor labor disputes that would disrupt federal procurement; establishes the policy that contracts should not be placed with contractors engaged in violations of federal labor law; requires reporting of labor disputes to contracting agencies; § 22.101-2 requires contract pricing to reflect labor costs without assuming violations of wage laws; § 22.102 obligates contractors to comply with all federal and state labor laws, with the federal mandate being the floor
  • Subpart 22.4 — Labor Standards for Contracts Involving Construction (38s): the FAR implementation of the Davis-Bacon Act — requires contracting officers to obtain a wage determination from the Department of Labor before soliciting construction contracts over $2,000; the wage determination specifies the prevailing wage rate and fringe benefits for each trade in the project's locality; FAR § 22.403 establishes applicability thresholds and exceptions; § 22.404 requires the most recent wage determination to be incorporated into solicitations; certified payrolls must be submitted weekly (via DOL Form WH-347); Davis-Bacon applies to building, alteration, and repair of public buildings and public works funded by the federal government (see Davis-Bacon Prevailing Wage for the underlying statute)
  • Subpart 22.8 — Equal Employment Opportunity (13s): FAR implementation of Executive Order 11246 requiring federal contractors and subcontractors with contracts over $10,000 to take affirmative action to ensure equal employment opportunity regardless of race, color, religion, sex, sexual orientation, gender identity, or national origin; contracts over $50,000 with 50+ employees require a written affirmative action program (AAP); the FAA clause (§ 52.222-26) must be incorporated into every covered contract; OFCCP (Office of Federal Contract Compliance Programs) enforces; in 2025 the Trump administration issued Executive Order 14173 directing agencies to end diversity-related affirmative action programs and DEI requirements in federal contracting — OFCCP enforcement posture shifted significantly as a result
  • Subpart 22.10 — Service Contract Labor Standards (45s): FAR implementation of the McNamara-O'Hara Service Contract Act (SCA) — requires federal service contracts over $2,500 to pay service employees at least the prevailing wage (wage determination) and fringe benefits (health and welfare, vacation) for the locality; a successor contractor taking over an existing service contract must honor the wages and benefits of the incumbent contractor's collective bargaining agreement for at least one year (§ 22.1008-2); wage determinations are obtained from DOL via the SCLS website or conformance process; covered employees include janitors, guards, administrative staff, IT technicians, and others performing services on federal contracts
  • Subpart 22.13 — Equal Opportunity for Veterans (11s): FAR implementation of the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) — federal contractors with contracts over $150,000 must take affirmative action to employ and advance protected veterans (disabled veterans, recently separated veterans, active duty wartime campaign badge veterans, armed forces service medal veterans); contractors with 50+ employees and contracts over $150,000 must set annual hiring benchmarks (either the national benchmark or their own calculated rate); OFCCP enforces
  • Subpart 22.14 — Employment of Workers with Disabilities (9s): FAR implementation of Section 503 of the Rehabilitation Act — requires federal contractors and subcontractors with contracts over $15,000 to take affirmative action to employ and advance qualified individuals with disabilities; contracts over $150,000 with 50+ employees require a written affirmative action program; a 7% utilization goal applies to each job group in the contractor's workforce; OFCCP enforces; the Trump 2025 EO on DEI created uncertainty about whether Section 503 disability affirmative action requirements continue to apply unchanged
  • Subpart 22.21 — Establishing Paid Sick Leave for Federal Contractors (11s): FAR implementation of Executive Order 13706 (Obama, 2015) — requires federal contractors and subcontractors to provide employees up to 56 hours (7 days) of paid sick leave per year, accruing at 1 hour per 30 hours worked; covers all employees performing work on or in connection with a federal contract; the Trump administration's 2025 executive orders on federal contractor requirements directed review of EO 13706, but the implementing FAR clause (§ 52.222-62) remained in effect for existing contracts as of April 2026

Pending Legislation

No standalone CWHSSA reform bills have been introduced in the 119th Congress. Federal contractor labor standards appear in broader labor and procurement legislation — see Davis-Bacon Act and Federal Procurement & Contracting.

Recent Developments

• Biden DOL's Davis-Bacon "mega-rule" overhauled CWHSSA enforcement framework: DOL's August 2023 final rule — the first comprehensive update to Davis-Bacon Act and CWHSSA regulations since 1982 — significantly strengthened overtime and wage enforcement on federal contracts. The rule reinstated the "Tri-Part Test" for determining whether a worker is a laborer or mechanic subject to prevailing wage requirements, expanded anti-retaliation protections, and modernized payroll recordkeeping requirements. CWHSSA liquidated damages ($35/day per violation) apply automatically once overtime violations are confirmed; the 2023 rule made it harder for contractors to argue violations were inadvertent. The Trump administration has not reversed the Davis-Bacon mega-rule as of April 2026.
• DOGE federal construction program slowdowns — contract workforce implications: The Trump administration's DOGE-driven freeze on federal construction grants (IRA-funded clean energy facilities, EDA economic development grants, some IIJA projects) has created work stoppages on projects where CWHSSA applies. Workers on stopped projects continue to accrue protections — any overtime worked before a stop order must be compensated — but mid-project stoppages create disputes about whether resumed work constitutes a continuation of the original contract or a new procurement. DOL Wage and Hour Division (WHD) field offices have been reduced under DOGE; enforcement capacity for ongoing CWHSSA compliance monitoring is under pressure.
• Commercial item exemption expanding as agencies use FAR Part 12 acquisitions: The FAR Part 12 commercial items exemption from CWHSSA has grown as agencies categorize more construction services as "commercially available." This trend — accelerated by Category Management initiatives pushing agencies toward existing commercial contracts — removes some construction work from CWHSSA overtime coverage. Unions and prevailing wage advocates have challenged FAR Part 12 use for construction-type work; GAO and IG audits have found some agencies improperly classify construction work as commercial items to avoid Davis-Bacon and CWHSSA requirements.
• Federal contractor overtime liability in the OSHA/CWHSSA overlap: CWHSSA's safety standards for hazardous work overlap with OSHA general industry and construction standards, and violations of either can generate contractor liability on federal jobs. Courts have generally held that OSHA compliance does not automatically satisfy CWHSSA safety requirements (and vice versa), creating dual regulatory exposure. OSHA's multi-employer citation policy — which allows OSHA to cite controlling employers on a construction site for subcontractor violations — creates CWHSSA secondary liability risk for general contractors who manage subcontractors violating overtime provisions.