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FOREWORD

There are included in this pamphlet a number of labor laws and regulations which are, or may be, applicable to contractors and subcontractors on public buildings and public works, and on buildings and works financed in whole or in part by loans or grants from the United States, and to persons constructing housing covered by FHA Mortgage Insurance.

No attempt has been made to include herein interpretations of these laws. The inclusion of such material would unreasonably increase the size of this pamphlet.

Generally, the laws applicable to Federal construction performed by the Federal Government by contract with construction contractors are the Davis-Bacon Act if the construction is in excess of two thousand dollars, and the Copeland Act and the Eight Hour Law. Also, Regulations Part 3 and Regulations Part 5 are applicable. Further, depending upon the type of construction involved and the activities of the individual employees, the Fair Labor Standards Act, which is not included herein (but copies of which are available) may, or may not, be applicable.

As to non-Federal construction, that is, construction performed by State or local agencies under contract with construction contractors and financed in whole or in part by loans or grants from the Federal Government, or by private individuals under arrangements whereby the Government insures the mortgage, the requirements generally are, as to the Acts authorizing construction which are enumerated in Section 5.1 of Regulations Part 5, that there shall be included in the construction contract provisions relating to payment of prevailing wage rates. There is usually no provision requiring compliance with the Eight Hour Law. However, the Defense Housing and Community Facilities and Services Act of 1951 by its terms provides for the payment of overtime compensation for work in excess of eight hours per day. The Copeland Act is applicable. The Fair Labor Standards Act may or may not be applicable, depending upon the type of construction involved and the activities of the individual employees. Regulations, Part 3 and 5, are applicable.

The statutory provisions and Regulations included in this pamphlet are the basis upon which

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provisions relating to labor requirements are included in various types of construction contracts. Of course, if by contract, a contractor has agreed to do more than is apparently required by the provisions of this pamphlet, he is nevertheless bound by the contractual obligation to comply with his contract. For provisions which will be found in most construction contracts, specific reference is made to Section 5.5 of Regulations Part 5.

Coverage under the Fair Labor Standards Act depends on the nature of the project and the activities of the employees. The Act applies to employees including those engaged in office, clerical or custodial capacities who are employed in the repair, replacement, improvement, or enlargement of either an existing instrumentality of commerce or an existing facility used in the production of goods for commerce.

Except in particular situations, employees such as laborers and mechanics who are engaged in the actual construction of entirely new buildings or facilities would not be covered by the Act. However, they would be covered if, for example, the new units were integral parts of existing plants for the production of goods for commerce and were constructed to enlarge or replace outmoded buildings or machinery in order to continue the operation of the plant as whole. Similarly, the Act would apply to employees engaged in the construction of new facilities which are to improve or to replace existing instrumentalities of interstate commerce.

Regardless of whether the project itself is covered by the Act, office, clerical or custodial employees may be covered if a substantial part of their activities relates to the movement in commerce of goods (such as building materials, equipment, checks and drafts) whether they write the letters, place orders, keep the books or are engaged in loading, unloading or watching the goods in transit.

It is hoped that this foreword will assist you in examining the various statutes. Obviously, a one-page summary of this kind cannot be complete or comprehensive enough to substitute for an examination of the basic source material, to which you are specifically referred in connection with any specific problem.

REGULATIONS

PART 5

Title 29, Subtitle A, Code of Federal Regulations

Standards, Regulations, and Procedures With
Respect to Administration and Enforcement
by Federal Agencies of Labor Standards Pro-
visions Applicable to Contracts Covering Fed-
erally Financed and Assisted Construction

Originally Effective July 1, 1951,* Amended
November 15, 1951, December 11, 1952,
July 22, 1954, October 14, 1954, October 11,
1956, October 26, 1956, December 9, 1958, and
July 1, 1961.

REPRINTED JULY, 1961

UNITED STATES DEPARTMENT OF LABOR

Arthur J. Goldberg, Secretary

Charles Donahue, Solicitor

WASHINGTON, D.C.

OF LABOR

STATES

AMERICA

*Published in the Federal Register, May 12, 1951, 16 F. R. 4430; November 15, 1951, 16 F. R. 11592; December 19, 1952, 17 F. R. 11593; July 29, 1954, 19 F. R. 4667; October 23, 1954, 19 F. R. 6831; October 17, 1956, 21 F. R. 7936; October 31, 1956, 21 F. R. 8319; December 13, 1958, 23 F. R. 9672.

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