413-2 Definitions: Complete definitions, promulgated by the Secretary of Labor to clarify the scope and intent of the Copeland "Anti-Kickback" Act, are contained in the applicable regulations, 29 CFR 3.2 (consult Index for location in this Manual).

413-3

Noncoverage: The Copeland "Anti-Kickback" Act applies to construction-type contracts. Certain exceptions to the Act's requirements are provided for in the Secretary of Labor's Regulations promulgated pursuant to this and related acts. Most of these exceptions apply to circumstances not normally encountered in Federal-aid construction activity, or to circumstances where the activities of a manufacturer or material supplier require some elements which are normally considered to be a type of construction activity, but which, in the circumstances, are limited in scope and merely incidental to the manufacturing or furnishing of supplies. Finally, exceptions to its requirements are provided for States and political subdivisions of the States. The requirements of the Act do not apply to the following:

413-3.1

413-3.2

Contracts or subcontracts for furnishing supplies
and equipment, including installation, where
the installation requires only an incidental
amount of work.

Contracts with a State or political subdivision
thereof (although the requirements do apply,
and the contract must so provide, to a sub-
contract thereunder with a private person or
firm which involves the construction, alteration,
and/or repair of public buildings or public
works).

413-3.3

413-4

Contracts with railroads and other public utilities
for construction services to the extent that the
services are performed by railroad employees covered
by the Railway Labor Act, or by personnel employed
directly by the public utility concerned, and
paid at rates prevailing in the wage pattern
of the utility concerned, but the Act shall
apply to construction services subcontracted by
the railroad or utility concerned.

Weekly Statement of Compliance: In accordance with the Copeland Act Regulations and the Federal-aid contract provisions, each week there shall be furnished to the resident engineer, a statement executed by each contractor and subcontractor, or by an authorized officer or employee of such contractor or subcontractor who supervises the payment of wages, with respect to the wages paid during the preceding weekly payroll period, in the form prescribed by the Regulations. Labor Department Form WH-348 (1-68) or any form with identical wording must be used for this purpose. The same form also appears on the reverse of the optional contractors' payroll Form, WH-347 (1-68). Each such statement shall be submitted within 7 days after the regular payment date of the payroll period. The statement of compliance shall be retained by the State highway department for a period of 3 years from the date of the final payment of Federal funds to the State with respect to the particular project.

413-5 Enforcement: The statutory authority for administration and enforcement of the Copeland Act is vested in the Department of Labor. Enforcement of the requirements of the Act is effected by requiring the inclusion of appropriate clauses in all contracts, pursuant to the Department of Labor Regulations, Part 3.

The Bureau of Public Roads is responsible for insuring that all Federal requirements are complied with in the utilization of Federal highway funds by the States and political subdivisions thereof.

413-5 Continued

The State highway department, or county or municipality by agreement with the State highway department, is, as the contracting agency, primarily responsible for insuring that there is compliance with the provisions of the Act and its implementing regulations and is further responsible for reporting violations of the criminal provisions which occur on its projects. Prosecution of the criminal violations is the responsibility of the U.S. Department of Justice.

413-5.1

Contracting Agency: The contracting agency shall insure that:

(a) All Federal-aid and Appalachian Highway construction contracts and subcontracts contain the required contract provisions making the Copeland "Anti-Kickback" Act regulations a part of all such contracts;

(b)

Contractors and subcontractors comply
therewith;

(c) Representative sampling of employees are
interviewed, free from presence of

413-5.2

Division Engineers: Division Engineers, through labor compliance officers, shall supervise compliance by the State agency with the above provisions by:

(a)

(b)

(c)

(a)

(e)

(£)

Insuring that the above certifications are
received;

Reviewing the contractor's and subcontractor's payroll records incident to their project inspections;

Ascertaining that the State highway department
continually takes a representative sampling
of employees, free from presence of the
employer, to verify compliance;

Ascertaining that subcontracts physically include the contract labor standards clauses and the contract minimum wage rage;

Recommending the appropriate State official, action to be taken in any instances of suspected violation;

Making reports and, when requested, conducting investigations of suspected violations and recommending actions to the Office of Chief Counsel, via appropriate channels.

413-6 Violations: Complaints of, and suspected, violations shall be thoroughly and promptly investigated. Complaints should be treated as confidential. Full reports of all such incidents shall be forwarded, via channels, to the Chief Counsel, for determination of appropriate final action.

Generally, it is desirable that voluntary correction by the contractor or subcontractor be solicited and every reasonable effort toward encouraging such cooperation undertaken before reports are submitted to the Bureau. However, if the pattern of conduct of the contractor indicates a reasonable basis for suspecting a criminal violation, reports, including a full statement of all facts pertinent thereto, should be forwarded promptly through channels to the Chief Counsel. Unlawful deductions could be the basis for termination of the contract, withdrawal of Federal participation, and could result in criminal prosecution by the Federal Government pursuant to 18 U.S.c. 874. In addition, fraudulent execution of the requisite statements of compliance could result in prosecution by the Federal Government under 18 U.S.C. 1001, 18 U.S.C. 1020, or 31 U.S.C. 231.

CHAPTER 414 IS RESERVED

CHAPTER 415

INSPECTION AND INVESTIGATION BY CONTRACTING AGENCY

415-1 General: This section defines the requirements for inspections and investigations of labor compliance matters, insofar as they apply to the State highway department, or other contracting agency under the State highway department. It is intended to define the situations necessitating such inspections and/or investigations, the procedures to be followed in the conduct of such matters, the content and format of required reports, and the nature and extent of corrective action to be taken. These instructions are designed to serve as a guide which, with the exception of the section relative to reporting procedures, and those dealing with the protection of the complaining witness' identity, may be varied or supplemented by the inspector or investigator as required by the circumstances. All personnel should use inspection and investigative methods best suited to the individual case and type of violation involved.