character described by the specifications and required under the contract are bought for the account of such person and sold to the public in the usual course of business.

(9) A regular dealer in raw or unmanufactured cotton linters may be a person who owns, operates or maintains a store, warehouse, or other place of business in which materials, supplies, articles, or equipment of the general character described in the specifications and required under the contract are bought for the account of such person and sold to the public in the usual course of business, and whose principal business is such purchase and sale of such materials, supplies, articles, or equipment.

(c) (1) Except as hereinafter provided, every bid received from any bidder who does not fall within one of the foregoing categories shall be rejected by the contracting officer.

(2) Whenever justice and the public interest will be served, bids for a contract or class of contracts will be exempted from the foregoing requirement by the Secretary of Labor upon the request of the head of the contracting agency or department when accompanied by his finding of fact that it will be so difficult to obtain satisfactory bids for the contract or class of contracts under the stipulated restrictions, that the conduct of the Government business will be seriously impaired.

[Regs. 504, 1 F.R. 1626, Sept. 19, 1936, as amended at 4 F.R. 1614, Apr. 14, 1939, 14 F.R. 295, Jan. 20, 1949, 17 F.R. 6417, July 15, 1952, 18 F.R. 1471, Mar. 14, 1953, 18 F.R. 2294, Apr. 21, 1953, 20 F.R. 4820, July 7, 1955, 21 F.R. 1718, Mar. 20, 1956, 24 F.R. 8067, Oct. 6, 1959. Redesignated at 24 F.R. 10952, Dec. 30, 1959] § 50-201.102 Employees affected.

The stipulations shall be deemed applicable only to employees engaged in or connected with the manufacture, fabrication, assembling, handling, supervision, or shipment of materials, supplies, articles, or equipment required under the contract, and shall not be deemed applicable to employees performing only office or custodial work, nor to any employee employed in a bonafied executive, administrative, or professional capacity, as those terms are defined and delimited by the regulations (29 CFR Part 541) applicable during the period of performance of the contract

under section 13 (a) (1) of the Fair Labor Standards Act of 1938, as amended. Redesignated at

[18 F.R. 1832, Apr. 2, 1953. 24 F.R. 10952, Dec. 30, 1959] § 50-201.103 Overtime.

(a) Employees engaged in or connected with the manufacture, fabrication, assembling, handling, supervision, or shipment of materials, supplies, articles, or equipment used in the performance of the contract may be employed in excess of 8 hours in any one day or in excess of 40 hours in any one week: Provided, Such persons shall be paid for any hours in excess of such limits the overtime rate of pay which has been set therefor by the Secretary of Labor.

(b) Until otherwise set by the Secretary of Labor the rate of pay for such overtime shall be one and one-half times the basic hourly rate received by the employee. The "basic hourly rate" means an hourly rate equivalent to the rate upon which time-and-one half overtime compensation may be computed and paid under section 7 of the Fair Labor Standards Act of 1938, as amended. The basic hourly rate may, in no case, be less than the applicable minimum wage.

(c) If in any one week or part thereof an employee is engaged in work covered by the contractor's stipulations, his overtime shall be computed after 8 hours in any one day or after 40 hours in any one week during which no single daily total of employment may be in excess of 8 hours without payment of the overtime rate.

(d) The overtime pay requirements of this section shall be deemed to be complied with in the case of any employee employed as provided in section 7(b) of the Fair Labor Standards Act of 1938, as amended, pursuant to the provisions of paragraph (1) or (2) of that section.

[7 F.R. 4494, June 16, 1942, as amended at 18 F.R. 1832, Apr. 2, 1953. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

§ 50-201.104 Dealer as agent of undisclosed principal.

Whenever a dealer, to whom a contract within the act and regulations in this part has been awarded, causes a manufacturer to deliver directly to the Government the materials, supplies, articles, or equipment required under the contract, such dealer will be deemed the

agent of the manufacturer in executing the contract. As the principal of such agent the manufacturer will be deemed to have agreed to the stipulations contained in the contract.

[1 F.R. 2359, Nov. 28, 1936. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

§ 50-201.105 Protection against unintentional employment of underage minors.

An employer shall not be deemed to have knowingly employed an underage minor in the performance of contracts subject to the act if, during the period of the employment of such minor, the employer has on file an unexpired certificate of age issued and held pursuant to regulations issued by the Secretary of Labor under section 3(1) of the Fair Labor Standards Act of 1938 (29 CFR Part 401), showing that such minor is at least 16 years of age, if a male, or at least 18 years of age, if a female.

13 F.R. 5440, Sept. 17, 1948. Redesignated at 24 F.R. 10952, Dec. 30, 1959|

§ 50-201.106 Hours worked.

In determining the hours for which an employee is employed, there shall be excluded any time which is excluded by section 3(0) of the Fair Labor Standards Act of 1938, as amended, from the computation of hours worked for purposes of sections 6 and 7 of that act.

[18 F.R. 1832, Apr. 2, 1953. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

§ 50-201.201 Breach of stipulations.

(a) Whenever the Department of Labor notifies the head of a contracting agency that a contractor is liable for liquidated damages by reason of a breach of stipulations as provided in section 2 of the act, there shall be withheld from any balance due under the contract such amount as may be necessary to satisfy such liability pending final disposition of the case.

(b) Whenever a final determination of a breach of stipulations is made, the Secretary of Labor will furnish to the contracting agency a copy of the findings and decision with such recommendations as will assist the contracting agency in determining whether or not the contract should be canceled for such breach.

Regs. 504, 1 F.R. 1627, Sept. 19, 1936. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

(a) Name, address, sex, and occupation of each employee covered by the contract stipulations.

(b) Date of birth of each employee under 19 years of age; and if the employer has obtained a certificate of age as provided in § 50-201.105, there shall also be recorded the title and address of the office issuing such certificate, the number of the certificate, if any, the date of its issuance, and the name, address and date of birth of the minor, as the same appears on the certificate of age.

(c) Wage-and-hour records for each such employee including the rate of wages and the amount paid each pay period, the hours worked each day and each week, and the period during which each such employee was engaged on a Government contract with the number of such contract. Compliance with this paragraph shall be deemed complete if wage-and-hour records for all employees in the plant are maintained during the period between the award of any Government contract and the date of delivery of the materials, supplies, articles, or equipment: Provided, That where no separate records for employees engaged on Government contracts are maintained, it shall be presumed until affirmative proof is present to the contrary that all employees in the plant, from the date of award of any such contract until the date of delivery of the materials, supplies, articles or equipment, were engaged on such Government contract.

(d) The records required by paragraphs (a), (b), and (c) of this section shall be kept on file for at least 3 years from their last date of entry;

(e) Basic employment and earnings records: All basic time and earning cards or sheets of the employer on which are entered the daily starting and stopping time of individual employees or of separate work forces, or the individual employees' daily, weekly, or pay period amounts of work accomplished (for ex

ample, units produced) when those amounts determine in whole or in part the pay period earnings or wages of those employees;

(f) Wage rate tables: All tables or schedules of the employer which provide the piece rates or other rates used in computing straight-time earnings, wages or salary, or overtime excess compensation;

(g) Work time schedules: All schedules or tables of the employer which establish the hours and days of employment of individual employees or of separate workforces;

(h) The records required by paragraphs (e), (f), and (g) of this section shall be kept on file at least 2 years from their last date of entry or their last effective date whichever is later.

[7 F.R. 7949, Oct. 7, 1942, as amended at 13 F.R. 5440, Sept. 17, 1948, 23 F.R. 2573, Apr. 18, 1958. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

(a) Records of injury frequency rates as defined in paragraphs (b) and (c) of this section, calculated quarterly on a calendar basis commencing the first of January of each year;

(b) The injury frequency rate shall be the number of disabling injuries to all employees per 1,000,000 man-hours of exposure, obtained by multiplying the total number of disabling injuries by 1,000,000 and dividing that sum by the total manhours of exposure;

(c) For the purpose of this section (1) "disabling injury" is one which causes disability to any employee extending beyond the day or shift during which the injury occurred, (2) "total man-hours of exposure" shall be the total man-hours actually worked by all employees during the quarter, (3) "employee" shall mean any employee in any department of the

factory or establishment, including protection, maintenance, transportation, clerical, office and sales, regardless of whether such employee is engaged in the performance of a contract subject to this act

(d) The records required by paragraphs (a), (b), and (c) of this section shall be kept on file at least 3 years from their date of entry.

[8 F.R. 4194, Apr. 2, 1943, as amended at 23 F.R. 2573, Apr. 18, 1958. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

(a) (1) Request for the exception or exemption of a contract or class of contracts from the inclusion or application of one or more of those stipulations required by § 50-201.1 must be made by the head of a contracting agency or department and shall be accompanied with a finding by him setting forth reasons why such inclusion or application will seriously impair the conduct of Government business.

(2) Request for the exception or exemption of a stipulation respecting minimum rates of pay and maximum hours of labor contained in an existing contract must be made jointly by the head of the contracting agency and the contractor and shall be accompanied with a joint finding by them setting forth reasons why such exception or exemption is desired.

(b) All requests for exceptions or exemptions shall be transmitted to the Public Contracts Division of the Department of Labor.

[7 F.R. 4767, June 26, 1942. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

§ 50-201.602 Decisions concerning exceptions and exemptions.

Decisions concerning exceptions and exemptions shall be in writing and approved by the Secretary of Labor or officer prescribed by him, originals being filed in the Department of Labor, and certified copies shall be transmitted to the department or agency originating the request, to the Comptroller General, and to the Procurement Division of the Treasury. All such decisions shall be promulgated to all contracting agencies by the Public Contracts Division of the Department of Labor.

[7 F.R. 4767, June 26, 1942. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

The following classes of contracts have been exempted from the application of $50-201.1 pursuant to the procedure required under section 6 of the act:

(a) Contracts for public utility services including electric light and power, water, steam, and gas;

(b) Contracts for materials, supplies, articles or equipment no part of which will be manufactured or furnished within the geographic limits of the continental United States, Alaska, Hawaii, Puerto Rico, the Virgin Islands, or the District of Columbia: Provided, That the representations and stipulations required by the act and this part in any contract for materials, supplies, articles, or equipment to be manufactured or furnished in part within and in part outside such geographic limits shall not be applicable to any work performed under the contract outside such geographic limits.

The above amendment shall become effective as to all contracts subject to the Public Contracts Act, bids for which are solicited or negotiations otherwise commenced on or after November 1, 1950.

(c) Contracts covering purchases against the account of a defaulting contractor where the stipulations required in this section were not included in the defaulted contract;

(d) Every "Emergency Plant Facilities Contract" in the form of substantially the form approved by the Advisory Commission to the Council of National Defense and published in the FEDERAL REGISTER On October 19, 1940, 5 F.R. 4147;

(e) Contracts awarded to sales' agents or publisher representatives, for the delivery of newspapers, magazines or periodicals by the publishers thereof.

(f) Contracts with a person who regularly buys and sells coal on his own account in lots of not less than a cargo or railroad carload, or with a person who is authorized by one or more persons engaged in mining coal to negotiate and conclude contracts for the furnishing thereof in such lots, are exempt from the requirement of section 1(a) of the act that such person represent that he is a manufacturer or a regular dealer in coal: Provided, however, That all the following terms and conditions are met:

(1) That such person will notify the persons engaged in mining the coal that the purchaser thereof is the United States and that provisions of the Public Contracts Act are applicable; and

(2) That such person, apart from the liability of the mines, shall be liable for the observance in the mines of all the labor standards provided in section 1 of the act; and

(3) That such person notify the contracting agency that he will accept the contract upon the terms and conditions set forth above.

17 F.R. 3992, May 29, 1942, as amended at 12 F.R. 6810, Oct. 17, 1947, 15 F.R. 6891, Oct. 13, 1950, 21 F.R. 1718, Mar. 20, 1956. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

(a) Until a determination of the prevailing minimum wage for a particular industry or group of industries has been made by the Secretary of Labor prior to the invitation for bids, the stipulation with respect to wages in section 1(b) of the act will be inoperative, as provided in § 50-201.1(b).

(b) Determinations of prevailing minimum wages or changes therein will be published in the FEDERAL REGISTER and sent to contracting officers by the Public Contracts Division of the Department of Labor. Such determinations will be effective upon the dates fixed therein.

[7 F.R. 4767, June 26, 1942. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

§ 50-201.1102 Tolerance for handicapped workers.

(a) Workers whose earning capacity is impaired by age or physical or mental deficiency or injury may be employed either in commercial establishments or as handicapped clients of sheltered workshops at wages lower than the prevailing minimum wage applicable under section 1(b) of the Public Contracts Act upon the same terms and conditions as are prescribed for the employment of handicapped persons and of

handicapped clients of sheltered workshops under section 14 of the Fair Labor Standards Act of 1938, as amended, and by the regulations of the Administrator of the Wage and Hour Division of the Department of Labor issued thereunder (29 CFR Parts 524, 525).

(b) Any certificate issued pursuant to such regulations, authorizing the employment of a handicapped worker under the Fair Labor Standards Act shall constitute authorization for the employment of that worker under the Public Contracts Act in accordance with the terms of the certificate.

(c) The Administrator of the Public Contracts Division is authorized to issue certificates under the Public Contracts Act for the employment of handicapped workers not subject to the Fair Labor Standards Act or subject to different minimum rates of pay under the two acts, at appropriate rates of compensation and in accordance with the standards and procedures prescribed by the applicable regulations issued under the Fair Labor Standards Act.

[18 F.R. 1832, Apr. 2, 1953. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

(a) Apprentices may be employed at wages lower than the prevailing minimum wages, determined by the Secretary of Labor pursuant to section 1(b) of the Public Contracts Act, in accord with the same standards and procedures as are prescribed for the employment of apprentices under section 14 of the Fair Labor Standards Act of 1938, and by the regulations of the Administrator of the Wage and Hour Division of the Department of Labor issued thereunder (29 CFR Part 521).

(b) Any certificate issued pursuant to such regulations shall constitute authorization for employment of that worker under the Public Contracts Act in accordance with the terms of the certificate, insofar as the prevailing minimum wage is concerned.

(c) The Administrator of the Public Contracts Division is authorized to issue, annul, or withdraw certificates under the Public Contracts Act for the employment of apprentices not subject to the Fair Labor Standards Act of 1938 or subject to different minimum rates of pay under the two acts, at appropriate rates of com

46052 0-60- -13

Whenever the contracting officer shall award a contract in which the stipulations required under § 50-201.1 are operative, he shall furnish the Department of Labor in quadruplicate on a form provided for this purpose the information required by such form.

[7 F.R. 4767, June 26, 1942. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

§ 50-201.1202 Complaints.

Whenever any officer or employee of the United States Government or of any agency thereof has any knowledge of, or receives any complaint with respect to, a breach or violation of the stipulations required under § 50-201.1, he shall transmit such complaint according to the usual practice in his department to the Department of Labor, together with such other information as he has in his possession.

[1 F.R. 1627, Sept. 19, 1936. Redesignated at 24 F.R. 10952, Dec. 30, 1959]

§ 50-201.1203 Other contracts.

Nothing in this part shall be construed as impairing the authority possessed by any contracting agency to require labor standards in contracts not covered by this act.

[1 F.R. 1627, Sept. 19, 1936. Redesignated at 24 F.R. 10952, Dec. 30, 1959]