FEDERAL CONTRACTING LAWS CONTRACT WORK HOURS ACT FEDERAL

FEDERAL CONTRACTING LAWS: CONTRACT WORK HOURS ACT

FEDERAL CONTRACTING LAWS CONTRACT WORK HOURS ACT OVERVIEW The Contract Work Hours and Safety Standards Act Requires contractors with the federal government to pay employees overtime compensation at 1 and ½ times their "basic rate" (hours worked in excess of 40 in a workweek) Applies only to "covered" work: work that is financed in whole or in part with federal funds Does not apply if the only form of federal involvement is loan guarantees or insurance

FEDERAL CONTRACTING LAWS CONTRACT WORK HOURS ACT COVERAGE Covers employers who have contracts with the federal government that are of the following nature: Construction contracts in excess of $2, 000 Covered employees: laborers and mechanics, including watchmen and guards, employed on public works. Coverage extends to workmen performing services in connection with dredging or rock excavation Also includes: Service contracts in excess of $2, 500 Manufacturing contracts in excess of $2, 500, but under $10, 000

FEDERAL CONTRACTING LAWS CONTRACT WORK HOURS ACT RECORDKEEPING Employers are required to maintain basic and payroll records during and for three years after a project including: §Name, address, and social security number of each worker §Each worker’s work classifications §Hourly rates of pay, including rates of contributions or costs anticipated for fringe benefits or their cash equivalents §Deductions made §Actual wages paid §Detailed information regarding bona fide fringe benefit plans and programs, including records that show that the plan or program has been communicated in writing to the laborers and mechanics affected

FEDERAL CONTRACTING LAWS CONTRACT WORK HOURS ACT COVERAGE A covered contractor is liable to workers for unpaid overtime and to the government for liquidated damages of $10/day for each day of violations The government can withhold payments from the contractor to cover these amounts Workers may pursue civil action against the contractor, where amounts recovered by the government are insufficient to meet the workers' claims A criminal penalty of a fine up to $1, 000 and six months in prison may apply in cases of willful violations