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funds, or underpayments of wages shall be held in a special deposit account and shall be paid, on order of the Secretary of Labor, directly to the employees who have been paid less than minimum rates of pay as set forth in such contracts and on whose account such sums were withheld or recovered: Provided, That no claims by employees for such payments shall be entertained unless made within 1 year from the date of actual notice to the contractor of the withholding or recovery of such sums by the United States of America.

(g) The contractor shall post a copy of the stipulations in a prominent and readily accessible place at the site of the contract work and shall keep such employment records as are required in the Regulations under the Act available for inspection by authorized representatives of the Secretary of Labor.

(h) The foregoing stipulations shall be deemed inoperative if this contract is for a definite amount not in excess of $10,000.**

*88 201.1 to 201.1203, inclusive, issued under the authority contained in sec. 4, 49 Stat. 2038; 41 U.S.C., Sup., 38.

In 88 201.1 to 201.1203, inclusive, the numbers to the right of the decimal point correspond with the respective article numbers in Regulations 504, Secretary of Labor, Sept. 14, 1936, 1 F.R. 1405, as amended. Amendments are noted in brackets following sections affected.

ABBREVIATION: The following abbreviation is used in this chapter:

Sec. Labor Secretary of Labor.

201.2 Statutory exemptions. Inclusion of the stipulations herein enumerated is not required in the following instances:

(a) Where the contracting officer is authorized by statute or otherwise to purchase in the open market without advertising for proposals;

(b) Where the contract relates to perishables, including dairy, livestock, and nursery products ("perishables" cover products subject to decay or spoilage and not products canned, salted, smoked, or otherwise preserved);

(c) Where the contract relates to agricultural or farm products processed for first sale by the original producers;

(d) Where the contract is by the Secretary of Agriculture for the purchase of agricultural commodities or the products thereof;

(e) Where the contract is with a common carrier for carriage of freight or personnel by vessel, airplane, bus, truck, express, or railway line, where published tariff rates are in effect;

(f) Where the contract is for the furnishing of service by radio, telephone, telegraph, or cable companies, subject to the Federal Communications Act of 1934 (48 Stat. 1064; 47 U.S.C. Chapter 5).*†

201.101 Manufacturer or regular dealer. A bidder or contractor shall be deemed to be a "manufacturer" or "regular dealer" within the meaning of the stipulation required by section 1 (a) of the Act and § 201.1 (a) of the regulations in this part if he falls within one of the following categories:

(a) A manufacturer is a person who owns, operates, or maintains a factory or establishment that produces on the premises the materials, supplies, articles, or equipment required under the contract and of the general character described by the specifications.

**For statutory and source citations, see note to § 201.1.

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(b) A regular dealer is a person who owns, operates, or maintains a store, warehouse, or other establishment in which the materials, supplies, articles, or equipment of the general character described by the specifications and required under the contract are bought, kept in stock, and sold to the public in the usual course of business. 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.

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 Government business will be seriously impaired.*f 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 office or custodial employees.**

201.103 Overtime. 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 person 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.

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 or piece rate received by the employee.

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.**

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.** [As added Nov. 24, 1936, 1 F.R. 2049]

201.201 Breach of stipulations. 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

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**For statutory and source citations, see note to § 201.1.

balance due under the contract such amount as may be necessary to satisfy such liability pending final disposition of the case.

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.*t

201.501 Records of employment. Every contractor subject to the provisions of the Act and the regulations in this part shall maintain the following records of employment which shall be available for the inspection and transcription of authorized representatives of the Secretary of Labor.

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

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(b) Date of birth of each such employee under 21 years 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 presented 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.

Such records shall be kept on file for at least 1 year after the termination of the contract.*t [As amended, Oct. 17, 1936, 1 F.R. 1634]

201.601 Requests for exceptions and exemptions. 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 § 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.

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.

All requests for exceptions or exemptions shall be transmitted through the Procurement Division of the Treasury for submission to the Department of Labor for consideration, and shall be returned through the Procurement Division.*†

201.602 Decisions concerning exceptions and exemptions. Decisions concerning exceptions and exemptions shall be in writing and

**For statutory and source citations, see note to § 201.1.

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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 Procurement Division of the Treasury.**

201.603 Administrative exemptions. The following classes of contracts have been exempted from the application of $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 which are to be performed outside the geographic limits of the United States, its territories, and the District of Columbia, except where such performance requires a shipment from within such geographic limits;

(c) Contracts covering purchases against the account of a defaulting contractor where the stipulations required herein were not included in the defaulted contract.*t

201.701 Definition of "person." Whenever used in the regulations in this part, the word "person" includes one or more individuals, partnerships, associations, corporations, legal representatives, trustees, trustees in bankruptcy, or receivers.*t

201.1101 Minimum wages. 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 § 201.1 (b).

Determinations of prevailing minimum wages or changes therein will be published in the Federal Register and sent to contracting officers through circular letters of the Procurement Division of the Treasury. Such determinations will be effective upon the dates fixed therein.**

CROSS REFERENCE: For Federal Register regulations, see 1 CFR Part 2.

201.1201 Reports of contracts awarded. Whenever the contracting officer shall award a contract in which the stipulations required under § 201.1 are operative, he shall furnish the Department of Labor in duplicate on forms provided for this purpose, a statement showing the name of the contracting agency, the purchase order number, the material purchased, the date of award, the contract price, the proposed date of delivery, the contractor's name and address, and the name and location of the plant or plants fabricating or supplying the subject matter of the contract.*†

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 § 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.*†

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**For statutory and source citations, see note to § 201.1.

201.1203 Other contracts. Nothing in the regulations 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.*t

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Section 202.1 Men's work clothing. It is determined, pursuant to the provisions of section 1 (b) of the Public Contracts Act (49 Stat. 2036; 41 U.S.C., Sup., 35) that the minimum wage for employees of contractors with the Government engaged in the manufacture of overalls, unionalls, service uniforms, work pants and work coats made of khaki, denim, drills, twills, cottonades, ducks, corduroys or other fabrics in whole or in part of cotton under contracts subject to the provisions of the Public Contracts Act, shall be $15 per week for a week of 40 hours, or 372 cents per hour. This determination shall be effective and the minimum wage hereby established shall be included, in all contracts of this class invitations to bid on which are issued on or after 10 days from the date of determination.** [Determination, Sec. Labor, Jan. 30, 1937, 2 F.R. 233]

**§§ 202.1 to 202.16, inclusive, issued under the authority contained in sec. 1 (b), 49 Stat. 2036; 41 U.S.C., Sup., 35 (b).

202.2 Cotton garment and allied industries. The minimum wage for employees engaged in the performance of contracts with agencies of the United States Government subject to the provisions of the Public Contracts Act (49 Stat. 2036; 41 U.S.C., Sup., 35), for the manufacture or supply of the following commodities, whether made of wool or cotton:

Men's and youths' trousers and knickers (except those made wholly of wool) Shirts and nightwear (including flannel)

Men's and youths' work shirts

Men's, youths', and boys' sleeping garments

Overalls, overall jackets, and one-piece overall suits

Work pants and breeches (except those made wholly of wool)

Work and other short coats

Windbreakers and lumber jackets (including mackinaws but excluding leather and sheeplined coats)

Oiled waterproof cotton outergarments

Men's and youths' wash suits

Washable service apparel (hospital, professional, etc.)

Blanket-lined and similar coats

Other cotton outerwear, men's, youths'

shall be 37.5 cents per hour or $15 per week for a week of 40 hours, to be arrived at either upon a time or piece work basic, and in accordance

**For statutory and source citations, see note to § 201.1.

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