FAR 22.301—Statutory requirement.
Plain-English Summary
FAR 22.301 explains the statutory overtime requirement that applies to certain federal contracts and the basic rule that must be reflected in the contract clause. It covers the requirement that laborers and mechanics performing work under the contract generally may not work more than 40 hours in a workweek unless they are paid overtime at not less than one and one-half times their basic rate of pay. In practice, this section is the legal foundation for the contract clause that protects covered workers, sets the overtime pay standard, and alerts contracting personnel and contractors that overtime limits and premium pay are mandatory when the statute applies. It matters because it affects labor scheduling, payroll practices, pricing, and compliance risk on covered construction and other labor-intensive contracts. The section is short, but it establishes the core statutory rule that drives later FAR coverage, clause prescription, and enforcement requirements.
Key Rules
40-Hour Workweek Limit
Covered laborers and mechanics may not be required or permitted to work more than 40 hours in a workweek unless the overtime pay requirement is met. The rule is tied to the workweek, not the day, so compliance is measured over the weekly total.
Overtime Premium Pay
If covered employees work overtime hours, they must be paid at not less than 1 1/2 times their basic rate of pay for all overtime hours. The statute sets a minimum premium rate; contractors may pay more, but not less.
Applies to Certain Contracts
This section does not create a universal overtime rule for all federal contracts; it applies only to contracts that the statute covers and that must include the required clause. The clause is the mechanism that makes the statutory requirement contractually enforceable.
Laborers and Mechanics Only
The rule specifically addresses laborers and mechanics doing any part of the work contemplated by the contract. It does not, by itself, govern all categories of employees, such as exempt professional or administrative personnel, unless another requirement applies.
Basic Rate of Pay
Overtime is calculated using the employee’s basic rate of pay, which is the wage rate used for the overtime premium under the statute. Contractors must identify the correct base rate to avoid underpayment.
Responsibilities
Contracting Officer
Determine whether the contract is one of the contracts covered by the statute and ensure the required overtime clause is included when applicable. The contracting officer must also understand that the clause implements a statutory labor standard and should not be omitted when required.
Contractor
Comply with the overtime requirement for covered laborers and mechanics by limiting hours to 40 per workweek unless overtime is paid at least at time and one-half of the basic rate. The contractor must manage schedules, payroll, and subcontractor performance so covered workers receive proper overtime compensation.
Subcontractor
Follow the same overtime rules for covered laborers and mechanics performing work under the covered contract. Subcontractors must coordinate with the prime contractor to ensure hours and pay records are accurate and compliant.
Agency
Use the statutory framework to ensure covered contracts include the proper labor clause and that acquisition personnel apply the rule consistently. The agency also has an interest in monitoring compliance because the requirement protects workers and supports lawful contract performance.
Covered Employee
Perform work within the hours authorized by the employer and report hours accurately so overtime can be properly tracked and paid. While the legal duty rests on the employer, accurate timekeeping by the employee is essential to compliance.
Practical Implications
Contractors must build overtime compliance into scheduling and payroll from the start; waiting until after work is performed can lead to wage underpayments and contract disputes.
The biggest pitfall is misclassifying workers or misidentifying the basic rate of pay, which can cause overtime to be calculated incorrectly.
Prime contractors should flow the requirement down and monitor subcontractor labor practices, because subcontractor noncompliance can create performance and payment problems on the prime contract.
Contracting officers should verify that the clause is included whenever the statute applies, since omission can create enforcement gaps and administrative corrections later.
Accurate weekly timekeeping is critical because the rule is measured by workweek totals, not by daily hours or pay periods.
Official Regulatory Text
The statute requires that certain contracts contain a clause specifying that no laborer or mechanic doing any part of the work contemplated by the contract shall be required or permitted to work more than 40 hours in any workweek unless paid for all such overtime hours at not less than 1 1/2 times the basic rate of pay.