200-2 Scope: This part of the manual deals with the labor standards requirements for construction contracts as prescribed by Federal statutes and regulations set forth below. Attention is invited to the appendixes to this volume wherein will be found extracts from all Federal laws, executive orders, regulations and contractual provisions hereinafter discussed.

CHAPTER 201
CONVICT LABOR

201-1 Coverage: Section 114(b) of Title 23, U.S.C.
precludes the use of convict labor in construction of any
highways or portions of highways located on the Federal-aid
system. However, convict labor may be used to perform
routine maintenance on the site of the work between the
time of program approval and the time of award of the
construction contract. (See PPM-21-6.3.)

201-2 Noncoverage: The law, and the implementing regulations (Section 1.24 (a) of the Regulations for the Administration of Federal Aid for Highways) do not prohibit the use in Federalaid highway projects of materials manufactured or produced by convict labor. Therefore, materials manufactured or produced by convict labor in penal institutions may be used on Federalaid highway systems projects, when they are furnished by the State highway departments to highway construction contractors, are used by State highway departments in force account construction, or are purchased by the highway construction contractors. It should be noted, however, that such materials are subject to the same requirements of Federal law and regulations and State plans and specifications as are applicable to the procurement of any other material used in the Federal-aid highway construction projects regardless of the source of manufacture or production.

CHAPTER 202

THE COPELAND "ANTI-KICKBACK" ACT

202-1 General: The Copeland "Anti-Kickback" Act (Act of June 13, 1934, as amended; 18 U.S.C. 874, and 40 U.S.C. 276c; makes it a criminal offense for any person to induce, by any manner whatsoever, any person employed in the construction prosecution, completion or repair of any public building, nublic work, or building or work financed in whole or in

te

part by loans or grants from the United States, to give
up any part of the compensation to which he is entitled
under his contract of employment. The Act also provides
that the Secretary of Labor shall make reasonable
regulations for contractors and subcontractors engaged in
such public works, including a provision for the submission
of weekly statements of compliance.

202-2 Coverage: The Secretary of Labor's Regulations, 29 CFR, part 3, apply to all contracts which are subject to Federal wage standards. Accordingly, they apply to direct Federal and Interstate projects, as well as to Federal-aid primary or secondary highway construction projects.

202-3

Weekly Statements of Compliance: The requirement for the submission of weekly statements of compliance is based upon the Regulations of the Secretary of Labor, (29 CFR, Part 3).

202-4 Bureau and State Action: Any suspected violations of
the criminal provisions of the Copeland Act, which are
uncovered by either Bureau or State personnel, should be
reported immediately, through the regional office, to the
Chief Counsel for further action. For the action to be
taken when suspected violations are discovered on a Federal-
aid project, see Chapter 413.

CHAPTER 203

FAIR LABOR STANDARDS ACT

203-1 General: The Fair Labor Standards Act (29 U.S.C., Section 201, et seq.) does not constitute a part of the labor standards provisions of Federal-aid construction contracts. Violations thereof do not require the imposition of contract sanctions; and, the enforcement thereof is not the responsibility of the contracting officer, or the contracting officer's representatives.

200-2 Scope: This part of the manual deals with the labor standards requirements for construction contracts as prescribed by Federal statutes and regulations set forth below. Attention

is invited to the appendixes to this volume wherein will be found extracts from all Federal laws, executive orders, regulations and contractual provisions hereinafter discussed.

CHAPTER 201
CONVICT LABOR

201-1 Coverage: Section 114(b) of Title 23, U.S.C.
precludes the use of convict labor in construction of any
highways or portions of highways located on the Federal-aid
system. However, convict labor may be used to perform
routine maintenance on the site of the work between the
time of program approval and the time of award of the
construction contract. (See PPM-21-6.3.)

201-2 Noncoverage: The law, and the implementing regulations (Section 1.24(a) of the Regulations for the Administration of Federal Aid for Highways) do not prohibit the use in Federalaid highway projects of materials manufactured or produced by convict labor. Therefore, materials manufactured or produced by convict labor in penal institutions may be used on Federalaid highway systems projects, when they are furnished by the State highway departments to highway construction contractors, are used by State highway departments in force account construction, or are purchased by the highway construction contractors. It should be noted, however, that such materials are subject to the same requirements of Federal law and regulations and State plans and specifications as are applicable to the procurement of any other material used in the Federal-aid highway construction projects regardless of the source of manufacture or production.

CHAPTER 202

THE COPELAND "ANTI-KICKBACK" ACT

202-1 General: The Copeland "Anti-Kickback" Act (Act of June 13, 1934, as amended; 18 U.S.C. 874, and 40 U.S.C. 276c; makes it a criminal offense for any person to induce, by any manner whatsoever, any person employed in the construction prosecution, completion or repair of any public building, public work, or building or work financed in whole or in

part by loans or grants from the United States, to give up any part of the compensation to which he is entitled under his contract of employment. The Act also provides that the Secretary of Labor shall make reasonable regulations for contractors and subcontractors engaged in such public works, including a provision for the submission of weekly statements of compliance.

202-2 Coverage: The Secretary of Labor's Regulations, 29 CFR, part 3, apply to all contracts which are subject to Federal wage standards. Accordingly, they apply to direct Federal and Interstate projects, as well as to Federal-aid primary or secondary highway construction projects.

202-3

Weekly Statements of Compliance: The requirement for the submission of weekly statements of compliance is based upon the Regulations of the Secretary of Labor, (29 CFR, Part 3).

202-4 Bureau and State Action: Any suspected violations of the criminal provisions of the Copeland Act, which are uncovered by either Bureau or State personnel, should be reported immediately, through the regional office, to the Chief Counsel for further action. For the action to be taken when suspected violations are discovered on a Federalaid project, see Chapter 413.

CHAPTER 203

FAIR LABOR STANDARDS ACT

203-1 General: The Fair Labor Standards Act (29 U.S.C., Section 201, et seq.) does not constitute a part of the labor standards provisions of Federal-aid construction contracts. Violations thereof do not require the imposition of contract sanctions; and, the enforcement thereof is not the responsibility of the contracting officer, or the contracting officer's representatives.

The discussion of the Act which follows is provided because:

203-1.1 The courts, in interpreting the Act, have held that highway construction work is subject to its requirements;

203-1.2

203-1.3

203-2

Some of the contract labor standards provisions
closely parallel the requirements of the Act, and
violations of these contract requirements,
which do require action pursuant to the contract,
must be carefully distinguished from actions
by the contractors which constitute violations
of the Act, but not the contract, and for which
the contracting officer has neither the duty
nor the authority to take action other than
to report the circumstances in conformity with
section 203-3 below;

The inspections required to verify contractor's
and subcontractor's compliance with the con-
tract labor standards provisions will,
necessarily, reveal violations of this Act,
if any exist, and guidance should be provided
for channeling information relative to such

violations.

Coverage: The Fair Labor Standards Act sets the basic minimum wage requirement of the Federal Government with respect to all employees engaged in interstate commerce or the production of goods for interstate commerce. It applies to most persons employed in highway construction and maintenance activities other than Federal, State and local public employees who are expressly exempted. The following basic standards are established:

203-2.1 A minimum wage of $1.60 an hour (except for certain workers defined in the Act);