• The CWHSSA applies to contractors and subcontractors with federal service contracts and federally funded and assisted construction contracts over $100,000.
• Contractors or subcontractors who violate the CWHSSA may be subject to fines, imprisonment, or both.

The Contract Work Hours and Safety Standards Act (CWHSSA) applies to contractors and subcontractors with federal service contracts and federally funded and assisted construction contracts over $100,000. Covered contracts include those entered into by the U.S., any agency or instrumentality of the U.S., any territory of the U.S., or the District of Columbia.

The Act also extends to federally assisted construction contracts subject to Davis-Bacon and Related Acts wage standards where the federal government is not a direct party, except those contracts where the federal assistance takes the form only of a loan guarantee or insurance.

Certain contracts are exempt from this Act. These include contracts for the following:

• Transportation by land, air, or water.
• Transmission of intelligence.
• Purchase of supplies, materials, or articles ordinarily available in the “open market.”
• Work required to be done according to provisions of the Walsh-Healey Public Contracts Act.

Employee rights and enforcement

The CWHSSA provides most workers on federal contracts the right to receive time and one-half for overtime hours worked on such contracts. The Wage and Hour Division accepts complaints of alleged CWHSSA wage violations.

The Wage and Hour Division enforces the compensation requirements of this Act, while the Occupational Safety and Health Administration enforces the safety and health requirements.

Relation to state, local, and other federal laws

The provisions of this Act also apply to Davis-Bacon and Related Acts contracts where the contract is financed in whole or in part by grants or loans from the U.S. government, or loans insured or guaranteed by the U.S. government, except where the federal assistance is only in the nature of a loan guarantee or insurance.

Regulations found in Title 48, Federal Acquisition Regulations System (FAR) also affect the CWHSSA. These regulations control the actual contract documents and designate required information that goes into a contract.

Penalties/Sanctions

Contractors or subcontractors who violate this Act may be subject to fines, imprisonment, or both. Intentional violations may be punished by a fine not to exceed $1,000 or by imprisonment for not more than six months, or both. Overtime wage violations may result in the assessment of liquidated damages in the sum of $10 for each calendar day an employee is allowed to work in excess of a 40-hour workweek without payment of the required overtime compensation.

Accrued contract amounts may also be withheld in sums necessary to satisfy the liability for unpaid wages and liquidated damages.

Contractors or subcontractors found to have committed willful or aggravated violations of the overtime requirements may have their contracts terminated and may be declared ineligible to receive future contracts for a period not to exceed three years.