FAR 22.2103—Applicability.
Plain-English Summary
FAR 22.2103 explains when this subpart on labor standards applies. It covers two main subject areas: first, contracts subject to the Service Contract Labor Standards statute or the Wage Rate Requirements (Construction) statute, and second, the employees whose wages are governed by those statutes or by the Fair Labor Standards Act, including employees who are exempt from FLSA minimum wage and overtime rules. The section also draws a geographic line: the subpart applies only when contract performance occurs in whole or in part within the United States, and if performance is split between U.S. and non-U.S. locations, the subpart applies to the portion performed in the United States. In practice, this provision tells contracting officers and contractors when the labor-related requirements in this subpart must be considered and enforced. It matters because it determines the reach of wage-related protections and compliance obligations on covered contracts and covered workers.
Key Rules
Covers SCA and Davis-Bacon contracts
This subpart applies to contracts covered by the Service Contract Labor Standards statute or the Wage Rate Requirements (Construction) statute. If a contract falls under either labor statute, the rules in this subpart are potentially triggered.
U.S. performance is required
The contract must require performance in whole or in part within the United States. If all performance is outside the United States, this subpart does not apply.
Applies to U.S. portion only
When a contract is performed partly inside and partly outside the United States, the subpart applies to the part performed within the United States. The overseas portion is not covered by this section’s geographic reach.
Covers certain employees
The subpart applies to employees performing on or in connection with covered contracts whose wages are governed by the Service Contract Labor Standards statute, the Wage Rate Requirements (Construction) statute, or the Fair Labor Standards Act.
Includes FLSA-exempt workers
Employees who are exempt from the FLSA minimum wage and overtime provisions are still included if they are performing on or in connection with covered contracts and their wages are governed by the FLSA.
Responsibilities
Contracting Officer
Determine whether the contract is covered by 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. Apply this subpart to the U.S. portion of mixed-location performance and ensure the proper labor requirements are included in the solicitation and contract.
Contractor
Identify whether the contract and the employees working on or in connection with it fall within this subpart’s scope. Apply the required wage-related compliance measures to covered work performed in the United States and to covered employees, including those exempt from FLSA minimum wage and overtime rules.
Agency
Support acquisition planning and contract administration so covered labor requirements are recognized early and applied consistently. Ensure internal procedures and oversight account for contracts with mixed U.S. and non-U.S. performance and for employees whose wages are governed by the referenced labor statutes or the FLSA.
Employees/Workforce
Perform work in accordance with the wage and labor requirements applicable to the covered contract and location. Employees are the beneficiaries of the protections, but compliance obligations rest primarily on the contractor and the government’s contract administration process.
Practical Implications
Contractors should check both the labor statute and the place of performance before assuming this subpart does or does not apply.
Mixed-location contracts are a common trap: the U.S.-performed portion can still trigger these requirements even if most work is overseas.
Coverage is not limited to hourly workers; employees exempt from FLSA minimum wage and overtime can still be within scope.
Contracting officers should make sure the solicitation and contract clearly reflect the applicable labor regime so wage determinations and compliance obligations are not missed.
A contract can be outside this subpart if it is not covered by the referenced labor statutes or if it is performed entirely outside the United States, so both elements must be checked.
Official Regulatory Text
This subpart applies to- (a) Contracts that- (1) Are 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 ); and (2) Require performance in whole or in part within the United States. 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; and (b) Employees performing on or in connection with such contracts whose wages are governed by the Service Contract Labor Standards statute, the Wage Rate Requirements (Construction) statute, or the Fair Labor Standards Act, including employees who qualify for an exemption from the Fair Labor Standards Act's minimum wage and overtime provisions.