Certain types of contracts are subject to contract labor laws. Pursuant to the McNamara-O'Hara Service Contract Act, covered contractors and subcontractors which enter into an agreement with the United States or the District of Columbia, who provide services for prime contracts which exceed $2,500.00, must pay its service employees no less than the prevailing wage in the state, or the rates which are in a predecessor contractor's collective bargaining agreement. If the predecessor contractor's collective bargaining agreement contained a prospective rate increase, the new contractor must provide this rate. Fringe benefits are also included in the contractors' responsibilities. In the event that the contract is for less than two thousand five hundred dollars, the contractor must pay the prevailing federal minimum wage. If the contract is for more than one hundred thousand dollars, contractors and subcontracts are also required to provide overtime payment of laborers and mechanics, at least one and a half time their regular rate of pay. It is important to note that there are exemptions from these requirements; whether a contractor or subcontractor is exempt should be reviewed in conjunction with the applicable law.