Federal Requirements For Construction Contracts Page 26
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35FEDERAL LABOR REQUIREMENTS:
OVERVIEW OF IMPORTANT POINTS
Federal Labor Standards apply to this Contract. These labor standards include Davis-Bacon and
Related Acts. In brief, this means:
• Wage rates paid to employees of the Contractor and employees of all subcontractors must be
no less than those in the Department of Labor “Wage Decision” for this project.
• The minimum wage rate for a trade not on the “Wage Decision” must be established in
conjunction with the Corporation and HUD based on Department of Labor regulations.
• Employees must be paid “time and a half” for hours which exceed 40 in any one week, as
mandated by the Contract Work Hours and Safety Standards Act (40 U.S.C. 327 - 333).
• Salaries of all employees of the Contractor and subcontractors under this Contract shall be
paid unconditionally and not less often than once a week without deduction or rebate on any
account except only such payroll deductions as are mandatory by law or permitted by the
applicable regulations issued by the Secretary of Labor pursuant to the Copeland Anti-
Kickback Act of June 13, 1934 (40 U.S.C. 276c). The Copeland Act makes it a criminal
offense to induce any person employed under this Contract to give up any part of the
compensation to which he or she is entitled.
• Weekly Certified Payroll Reports must be submitted by the Contractor and all subcontracts,
as mandated by the Copeland Act.
• A “working subcontractor” who performs trade work at the project site and has employees
working at the site must submit weekly certified payroll reports on which he includes the
hours he worked on the project. However, he may identify himself on those reports as
“owner” and omit the wage rate he pays himself.
A “working subcontractor” who performs trade work at the project site and has no
employees working at the site must be included on the General Contractor’s weekly certified
payroll reports. His trade, wage rate, and hours must be included. The terms “1099” or
“subcontractor” may be used to indicate why no deductions are taken. Regardless of the bid
amount of the subcontract, this subcontractor must actually be paid weekly and at a wage
rate no less than that established by the Wage Decision or accepted additional classification
procedures. If the subcontract provides for additional compensation, the amounts owed shall
be paid by the General Contractor periodically and/or at the end of the project in response to
invoices submitted by the subcontractor.
• Contractors must use the “Wage Decision” in effect when the bids are opened for this
project. The most recent “Wage Decision” available is included in the bid documents.
If this “Wage Decision” is modified by the Department of Labor prior to the opening of
bids, the new rates will apply if the modification occurs at a time when it is still feasible
for the Corporation to notify potential bidders.
Page 24
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