FAR 52.222-20—Contracts for Materials, Supplies, Articles, and Equipment.
Plain-English Summary
FAR 52.222-20 is a labor standards clause that applies to contracts for the manufacture or furnishing of materials, supplies, articles, or equipment when the contract amount exceeds, or may exceed, the threshold in FAR 22.602 and the contract is subject to 41 U.S.C. chapter 65. Its purpose is to flow the statutory minimum wage requirements for certain federal supply-type contracts into the contract itself and to make clear that the contractor must comply with the Department of Labor’s implementing regulations at 41 CFR chapter 50. The clause also incorporates by reference all required stipulations under the statute and DOL regulations, including future rulings and interpretations issued by the Secretary of Labor. In practice, this means contractors must ensure covered employees are paid at least the applicable federal minimum wage, while recognizing limited exceptions for learners, student learners, apprentices, and workers with disabilities when permitted under the Fair Labor Standards Act framework. For contracting officers, the clause is a mandatory solicitation and contract provision when the statutory and dollar-threshold conditions are met, and it serves as the vehicle for enforcing these wage requirements in covered supply contracts.
Key Rules
Applies to covered supply contracts
The clause applies only when the contract is for the manufacture or furnishing of materials, supplies, articles, or equipment, the contract amount exceeds or may exceed the FAR 22.602 threshold at award, and the contract is subject to 41 U.S.C. chapter 65. If those conditions are not met, the clause is not required.
Incorporates statutory stipulations
All stipulations required by 41 U.S.C. chapter 65 and the Department of Labor’s regulations at 41 CFR chapter 50 are incorporated by reference. This means the contractor is bound not just by the clause text, but by the full set of applicable statutory and regulatory labor standards.
Future DOL interpretations apply
The clause makes clear that the incorporated requirements are subject to current and future rulings and interpretations of the Secretary of Labor. Contractors must therefore stay current with DOL guidance, not just the text in effect at award.
Minimum wage must be paid
All employees whose work relates to the contract must be paid at least the minimum wage prescribed by the Secretary of Labor at 41 CFR 50-202.2. The requirement is tied to work related to the contract, not just direct labor on a specific line item.
Limited subminimum wage exceptions
Learners, student learners, apprentices, and workers with disabilities may be paid less than the prescribed minimum wage only to the extent permitted under 41 CFR 50-202.3 and section 14 of the Fair Labor Standards Act, as referenced in 41 U.S.C. 6508. These are narrow exceptions and are not automatic.
Mandatory clause insertion
The clause is prescribed by FAR 22.610, so contracting officers must include it in solicitations and contracts when the coverage criteria are met. Failure to include it can create compliance and administration problems even though the statutory requirements may still apply.
Responsibilities
Contracting Officer
Determine whether the procurement is for covered materials, supplies, articles, or equipment and whether the dollar threshold and statutory coverage conditions are met. Insert the clause in the solicitation and contract when required, and administer the contract with awareness that DOL labor standards and interpretations apply.
Contractor
Pay all employees whose work relates to the contract at least the applicable minimum wage, unless a lawful exception applies. Ensure any use of learners, student learners, apprentices, or workers with disabilities complies with the governing DOL rules and FLSA-based limitations.
Department of Labor
Issue and interpret the regulations and wage requirements incorporated by the clause, including minimum wage prescriptions and any approved subminimum wage provisions. Provide rulings and interpretations that control the meaning and application of the incorporated labor standards.
Agency/Contract Administration Staff
Monitor contract administration for compliance issues, coordinate with the contracting officer on labor standards questions, and ensure the contract file reflects the basis for clause inclusion and any relevant labor standards determinations.
Practical Implications
Contractors should treat this clause as a wage-compliance requirement for covered supply contracts, not as a mere boilerplate provision. Payroll systems, subcontractor oversight, and labor classifications should be checked early to avoid underpayment.
The phrase 'employees whose work relates to this contract' can reach beyond workers performing only direct production, so contractors should review who is covered rather than assuming only line workers are affected.
Subminimum wage arrangements are tightly regulated and require legal and regulatory support; contractors should not assume apprentices or disabled workers may be paid less without confirming the specific DOL authority and conditions.
Contracting officers should verify whether the procurement meets the threshold and statutory coverage before award, because omission of the clause can complicate enforcement and contract administration.
Because the clause incorporates future DOL rulings and interpretations, compliance is an ongoing obligation; contractors should monitor regulatory updates throughout performance, not just at award.
Official Regulatory Text
As prescribed in 22.610 , insert the following clause in solicitations and contracts: Contracts for Materials, Supplies, Articles, and Equipment (Jun 2020) If this contract is for the manufacture or furnishing of materials, supplies, articles or equipment in an amount that exceeds or may exceed the threshold specified in Federal Acquisition Regulation 22.602 on the date of award of this contract, and is subject to 41 U.S.C. chapter 65 , the following terms and conditions apply: (a) All stipulations required by 41 U.S.C. chapter 65 and regulations issued by the Secretary of Labor (41 CFR Chapter 50) are incorporated by reference. These stipulations are subject to all applicable rulings and interpretations of the Secretary of Labor that are now, or may hereafter, be in effect. (b) All employees whose work relates to this contract shall be paid not less than the minimum wage prescribed by regulations issued by the Secretary of Labor (41 CFR 50-202.2). Learners, student learners, apprentices, and workers with disabilities may be employed at less than the prescribed minimum wage (see 41 CFR 50-202.3) to the same extent that such employment is permitted under section 14 of the Fair Labor Standards Act ( 41 U.S.C. 6508 ). (End of clause)