FAR 22.1903—Applicability.
Plain-English Summary
FAR 22.1903 explains when the Executive Order 13658 minimum wage subpart applies and when it does not. It covers two main contract categories: contracts subject to the Service Contract Labor Standards statute and contracts subject to the Wage Rate Requirements (Construction) statute, but only to the extent performance occurs in the United States as defined in the rule. It also explains which workers are covered, including workers covered regardless of the contractor’s claimed relationship with them, workers with disabilities paid under special certificates, and workers in bona fide apprenticeship or training programs. The section then identifies workers who are excluded, including certain Fair Labor Standards Act-covered individuals performing only incidental contract-related work and certain FLSA-exempt individuals such as learners, apprentices, messengers, students, and executive, administrative, or professional employees unless another wage statute covers them. Finally, it points users to Agency Labor Advisors listed in SAM.gov for guidance. In practice, this section tells contractors and contracting officers how to determine whether the EO minimum wage requirements apply to a contract, which workers must be paid under those rules, and where to seek help when coverage questions are close or fact-specific.
Key Rules
Applies to covered labor statutes
This subpart applies to contracts covered by the Service Contract Labor Standards statute or the Wage Rate Requirements (Construction) statute. It is not a general wage rule for all federal contracts; it is tied to those two statutory regimes.
U.S. performance triggers coverage
The rule applies only when performance occurs in whole or in part within the United States, including the listed territories and outer Continental Shelf areas. If work is split between inside and outside the United States, the subpart applies only to the portion performed within the United States.
Worker coverage is broad
The subpart applies to workers as defined in FAR 22.1901, and coverage is not avoided by how the contractor labels the relationship. Workers with disabilities paid under special certificates and workers in bona fide apprenticeship or training programs are also covered.
Certain incidental FLSA workers are excluded
Individuals who are FLSA-covered but only perform duties necessary to contract performance, are not directly engaged in the specific contract work, and spend less than 20 percent of their workweek on that contract-related work are not covered by this subpart.
Some FLSA-exempt employees are excluded
Individuals exempt from FLSA minimum wage requirements under 29 U.S.C. 213(a) and 214(a) and (b) are generally excluded unless another wage statute covers them. This includes certain learners, apprentices, messengers, students, and bona fide executive, administrative, or professional employees.
Agency Labor Advisors can assist
Agency Labor Advisors are identified in SAM.gov and are available to help interpret and apply this subpart. This provides a practical support channel for coverage and classification questions.
Responsibilities
Contracting Officer
Determine whether the contract is subject to the Service Contract Labor Standards statute or the Wage Rate Requirements (Construction) statute and whether performance occurs in whole or in part within the United States. Ensure the applicable EO minimum wage requirements are flowed into the contract and seek labor advisor assistance when coverage or worker-status questions are unclear.
Contractor
Identify which workers are covered by the subpart, including workers whose relationship is labeled differently, and pay covered workers in accordance with the applicable wage requirements. Exclude only those workers who clearly fall within the stated exclusions and maintain support for any exemption or special-status classification.
Subcontractor
Apply the same coverage analysis to its workforce on covered work and comply with the wage requirements for covered workers. Coordinate with the prime contractor on worker classifications, special certificates, apprenticeship status, and any mixed U.S./non-U.S. performance issues.
Agency Labor Advisor
Provide guidance and assistance on applying the subpart, including coverage determinations, worker inclusion or exclusion questions, and interpretation of the U.S. performance limitation.
Agency
Make labor-advisor resources available through SAM.gov and support consistent application of the subpart across covered acquisitions.
Practical Implications
Coverage turns on both the type of contract and where the work is performed, so mixed-location contracts need a careful, task-by-task analysis.
Contractors cannot avoid coverage by calling workers independent contractors, trainees, or something else if the workers fit the definition in FAR 22.1901.
The 20 percent rule for certain FLSA-covered individuals is a common pitfall; contractors should track actual hours, not just job titles or general duties.
Apprentices, learners, students, and workers with disabilities may still be covered even when special wage certificates apply, so special wage treatment does not automatically mean exclusion.
When the contract includes both U.S. and non-U.S. performance, only the U.S. portion is covered, which makes allocation of labor and payroll records especially important.
Official Regulatory Text
(a) This subpart applies to contracts covered by the Service Contract Labor Standards statute ( 41 U.S.C. chapter 67 , formerly known as the Service Contract Act, subpart 22.10 ), or the Wage Rate Requirements (Construction) statute ( 40 U.S.C. chapter 31, Subchapter IV , formerly known as the Davis Bacon Act, subpart 22.4 ), that require performance in whole or in part within the United States (the 50 States, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, Johnston Island, Wake Island, and the outer Continental Shelf as defined in the Outer Continental Shelf Lands Act ( 43 U.S.C. 1331, et seq. )). When performance is in part within and in part outside the United States, this subpart applies to the part of the contract that is performed within the United States. (b) (1) This subpart applies to workers as defined at 22.1901 . As provided in that definition- (i) Workers are covered regardless of the contractual relationship alleged to exist between the contractor or subcontractor and the worker; (ii) Workers with disabilities whose wages are calculated pursuant to special certificates issued under 29 U.S.C. 214(c) are covered; and (iii) Workers who are registered in a bona fide apprenticeship program or training program registered with the Department of Labor’s Employment and Training Administration, Office of Apprenticeship, or with a State Apprenticeship Agency recognized by the Office of Apprenticeship, are covered. (2) This subpart does not apply to- (i) Fair Labor Standards Act (FLSA)-covered individuals performing in connection with contracts covered by the E.O., i.e., those individuals who perform duties necessary to the performance of the contract, but who are not directly engaged in performing the specific work called for by the contract, and who spend less than 20 percent of their hours worked in a particular workweek performing in connection with such contracts; (ii) Individuals exempted from the minimum wage requirements of the FLSA under 29 U.S.C. 213(a) and 214(a) and (b) , unless otherwise covered by the Service Contract Labor Standards statute or the Wage Rate Requirements (Construction) statute. These individuals include but are not limited to- (A) Learners, apprentices, or messengers whose wages are calculated pursuant to special certificates issued under 29 U.S.C. 214(a) ; (B) Students whose wages are calculated pursuant to special certificates issued under 29 U.S.C. 214(b) ; and (C) Those employed in a bona fide executive, administrative, or professional capacity (29 U.S.C. 213(a)(1) and 29 CFR part 541). (c) Agency Labor Advisors, as defined at 22.001 , are listed at https://www.sam.gov , and are available to provide guidance and assistance with the application of this subpart.