Overview
This section identifies the foundational statutes, Executive orders, and Department of Labor (DOL) regulations that govern labor standards for federal construction contracts. It establishes the legal framework for prevailing wages, overtime compensation, anti-kickback protections, and minimum labor benefits for "laborers and mechanics" working on public buildings or works.
Key Rules
- Construction Wage Rate Requirements (Davis-Bacon Act): For construction, alteration, or repair contracts exceeding $2,000, contractors must pay laborers and mechanics no less than the prevailing wage rates determined by the Secretary of Labor.
- Copeland (Anti-Kickback) Act: Prohibits inducing employees to give up any part of their rightful compensation through intimidation or threat of dismissal; it also mandates the submission of weekly "statements of compliance" regarding wages paid.
- Contract Work Hours and Safety Standards Act: Requires that laborers and mechanics be paid at least 1.5 times their basic rate of pay for all hours worked in excess of 40 hours in a single workweek.
- Executive Orders 14026 and 13658: Establishes a higher minimum wage for federal contractor workers (currently $15.00/hour, adjusted annually), which takes precedence if it is higher than the statutory prevailing wage rate.
- Executive Order 13706: Mandates that certain federal contractors provide employees with paid sick leave.
- Regulatory Enforcement: The DOL (Title 29 CFR) provides the specific procedures for wage determinations, payroll inspections, enforcement, and the administrative appeal process for disputes.
Practical Implications
- Contractors must implement rigorous payroll tracking systems to ensure compliance with weekly reporting requirements and to prove they are paying the higher of either the Davis-Bacon prevailing wage or the Executive Order minimum wage.
- Failure to comply with these labor standards can lead to contract termination, financial liability for back wages, and administrative debarment from future government contracting opportunities.