XL EagleWalsh-Healey Act (Walsh-Healey Public Contracts Act)
Walsh-Healey Act stands for Walsh-Healey Public Contracts Act. The Walsh-Healey Public Contracts Act sets labor standards for contracts to manufacture or furnish materials, supplies, articles, or equipment to the federal government. Since October 1, 2025, it applies to covered supply contracts over $20,000.
Covered contractors must pay at least the federal minimum wage, pay overtime for hours over 40 in a week, avoid child labor and convict labor, and keep safe and sanitary working conditions. It applies to the manufacturer or regular dealer furnishing the goods.
Why it matters to a small contractor
If you manufacture or supply products to federal buyers, you agree to these standards when you bid on covered contracts. Most legitimate employers already meet them, but make sure your records on hours and overtime are clean.
Example
A small metal fabrication shop wins a supply contract for equipment racks over the Walsh-Healey threshold. They confirm their timekeeping tracks overtime correctly, since the contract includes the Walsh-Healey clause.
Walsh-Healey Act: common questions
What is the Walsh-Healey threshold?
It increased from $15,000 to $20,000 on October 1, 2025, under the FAR inflation adjustment.
Does Walsh-Healey apply to services?
No. It covers supply contracts. Services are covered by the Service Contract Act instead.
Want the contract without the paperwork? Send XL Eagle your price on an open government job. We write and submit the bid under our registrations, free to you. Find open jobs →