Understanding the Coverage and Exemptions of the Contract Work Hours and Safety Standards Act (CWHSSA)

The Contract Work Hours and Safety Standards Act (CWHSSA) is a critical federal law that ensures workers’ fair labor practices in federal construction and service contracts. Initially enacted in 1962 and later amended in 1969, CWHSSA plays a vital role in protecting the rights of laborers and mechanics employed on federally funded projects. The Act requires that workers receive overtime pay—one and a half times their regular rate—for any hours worked over 40 in a workweek. In addition to wage protections, CWHSSA also enforces safety standards to create safer working environments, reducing the risk of injuries on construction sites and other hazardous workplaces. These provisions are essential in promoting fair wages and safe working conditions across various federal projects, including those subject to the Davis-Bacon Act and Service Contract Act.

This legislation has become a cornerstone of labor law, ensuring that the people who help build and maintain critical infrastructure are compensated fairly and protected on the job. Whether it’s construction workers, mechanics, or even security guards employed on federal contracts, CWHSSA ensures their rights are safeguarded through consistent enforcement of wage and safety standards.

Coverage of CWHSSA​

Contract Thresholds

CWHSSA applies to various contracts under the Davis-Bacon Act (DBA), the Service Contract Act (SCA), and certain Davis-Bacon Related Acts.​ Here are the specific thresholds for its application:

  1. DBA and SCA Contracts Subject to FAR Procurement: CWHSSA applies to contracts exceeding $150,000. ​
  2. DBA and SCA Contracts Not Subject to FAR Procurement: For contracts not under the Federal Acquisition Regulation (FAR), CWHSSA applies to those exceeding $100,000. ​
  3. Related Act Contracts: CWHSSA also covers contracts under Related Acts exceeding $100,000, except where federal assistance is limited to loan guarantees or insurance. ​

Self-Executing Nature

CWHSSA is self-executing, meaning its provisions apply even if they are not explicitly included in the contract.​ This ensures that laborers and mechanics receive the protections and benefits intended by the Act, regardless of any oversight in contract stipulations.

Laborers and Mechanics ​

CWHSSA specifically covers laborers and mechanics, including guards and watchpersons.

This broad coverage ensures that the Act protects a wide range of workers involved in federal construction projects.​

No Site of the Work Limitation ​

Unlike some other labor standards, CWHSSA does not limit its application to the “site of the work.”

This means that if a worker performs part of their duties at a construction site and part at another location, all hours worked on the contract are covered by CWHSSA.

Exemptions from CWHSSA

While CWHSSA offers broad coverage, there are specific exemptions where the law doesn’t apply:

  • Transportation Contracts: Contracts for land, air, or water transportation are exempt from CWHSSA. ​
  • Transmission of Intelligence: Contracts involving the transmission of intelligence are not covered by CWHSSA. ​
  • Purchase of Supplies or Materials: Contracts for purchasing supplies, materials, or articles ordinarily available in the open market are exempt. ​
  • Work Under PCA: Work required under the Public Contracts Act (PCA) is not subject to CWHSSA.
  • Small Contracts: Construction or services contracts subject to FAR procurement and not exceeding $150,000, or those not subject to FAR procurement and not exceeding $100,000, are exempt.​
  • Commodity Credit Corporation Agreements: Agreements by the Commodity Credit Corporation for the storage or handling of certain items, such as grain, seeds, and cotton, are exempt. ​
  • Tennessee Valley Authority Sales: Certain surplus power sales by the Tennessee Valley Authority (TVA) are not covered. ​
  • Foreign Workplaces: Work performed in workplaces within foreign countries is exempt. ​
  • Territorial Work: Work performed within U.S. territories other than the 50 states, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf lands, American Samoa, Guam, Wake Island, and Johnston Island is not covered.

What are FAR and Non-FAR Contracts?

When discussing CWHSSA, you may have noticed the terms FAR and non-FAR contracts. These terms are crucial to understanding how the Act applies to different federal contracts.

Federal Acquisition Regulation (FAR) Contracts

The Federal Acquisition Regulation (FAR) is the primary set of rules governing how the U.S. federal government acquires goods and services. It provides a comprehensive framework federal agencies must follow when awarding supplies, construction, and services contracts.

Contracts that FAR governs are often referred to as FAR contracts. These contracts are subject to specific procurement rules, including competition, pricing, and labor standards such as CWHSSA. For example:

  • If a federal construction project exceeds $150,000 and falls under FAR, CWHSSA applies, ensuring that workers receive overtime pay and that safety standards are upheld.

Non-FAR Contracts

A non-FAR contract refers to contracts that are not subject to the rules set forth by the Federal Acquisition Regulation. While many federal contracts fall under FAR, there are some exceptions. Non-FAR contracts may arise in situations like:

  • Grant agreements
  • Loan guarantees
  • Certain types of federal assistance

The threshold for non-FAR contracts is lower in the context of CWHSSA. If a contract exceeds $100,000 and is not governed by FAR, the CWHSSA still applies, ensuring workers are protected under the same labor standards.

Need Help with Compliance?

Navigating the intricacies of CWHSSA can be tricky, especially when dealing with various federal thresholds and exemptions. That’s where Labor Compliance CA, LLC comes in. As experts in labor compliance, they provide tailored assistance with:

  • Documenting compliance with CWHSSA and related acts
  • Ensuring adherence to contract requirements
  • Answering your questions on exemptions, overtime pay, and other concerns

Whether you’re a contractor, subcontractor, or project manager, Labor Compliance CA, LLC can help ensure that your project meets all federal labor standards, giving you peace of mind and preventing costly violations.

Call Labor Compliance CA, LLC at (818) 665-2103 for more information on how they can assist with your labor compliance needs.

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