410-3.7

410-3.8

Appeals to Federal Highway Administrator,
Secretary of Labor, and Court of Claims,
within 60 days from computation, withholding,
or final order; and,

Intentional violations a Federal misdemeanor
($1,000 fine and/or 6 months in prison).

410-4 Fair Labor Standards Act (29 U.S.C. 201-219):

410-4.1

410-4.2

410-4.3

410-4.4

Minimum wage of $1.60 per hour; subject to
increase by further legislation;

Time and one-half pay for overtime in excess of
40 hours worked in a workweek;

Limitations on child labor; and,

Contractors' responsibility to request

ruling from U.S. Department of Labor relative
to applicability of Act.

410-5 False Information Act (18 U.S.C. 1001); (18 U.S.C. 1020):

410-5.1 The making or use of false statements is a felony.

410-6 False Claims Act (31 U.S.C. 231):

410-6.1

Making or using false claims for purpose of
obtaining or aiding to obtain payment or approval
of claims against United States subjects
violator to forfeiture of $2,000 for each
violation.

410-7.1

410-8

Violations of acts may result in withholding, termination of contract, administrative debarment and/or criminal or civil prosecution.

Classification or Reclassification of Employees:

410-8.1

410-8.2

The minimum wage schedule should be examined
with the contractor to ascertain the need
for classification or reclassification of
laborers and mechanics.

Where classification or reclassification of
laborers and mechanics is undertaken, a
report thereof on Form PR-1140, must be
submitted to the Secretary of Labor for
approval.

410-9.1

410-9.2

410-8.3

410-8.4

Apprentices can be employed only under a registered program.

Contractor or subcontractor must submit written evidence of registration (apprenticeship agreement or statement of registration).

Employees classified as apprentices who are
not registered must be paid rates shown in
minimum wage schedule, on the basis of the
classification of work they actually performed.

Proper ratio of apprentices to journeymen must
be maintained.

410-9.1

A certified copy of each weekly payroll must be submitted by the prime contractor and each subcontractor within 7 days of the regular payment date thereof.

410-9.2 Payrolls must be complete.

410-9.3 Delay in submittal of payroll will result in delay in processing payment estimates.

410-9.4

410-9.5

410-10

Prime contractor is responsible for the submittal of payrolls by subcontractors.

All basic records pertaining to the payrolls,
including time cards, must be preserved for
a period of 3 years after completion of

the contract.

Subcontractor:

410-10.1

Laborers and mechanics employed by the prime
contractor and subcontractors are covered by
the contract provisions, but employees of
material suppliers are not.

410-10.2 The prime contractor is responsible for violations of labor provisions by his subcontractors.

410-10.3 The contract clauses required by PPM 40-4

(PR-1273) or PPM 23-3 (PR-1316), as appropriate, must be physically incorporated in all subcontracts.

410-11 Convict Labor: Use of convict labor is forbidden.

CHAPTER 411

REVIEW OF CONTRACTS AND SUBCONTRACTS FOR

LABOR STANDARDS PROVISIONS

Division engineers, through their designated labor compliance officers, are responsible for insuring that the required contract provisions set forth in PPM 40-4 are physically incorporated in all contracts or subcontracts entered into by

contracting agencies or their contractors with respect to the prosecution of work on the initial construction of the various Federal-aid highway systems.

CHAPTER 412

DIVISION OFFICE REVIEW OF PAYROLLS AND STATEMENTS

412-1 Retention and Review: In accordance with contract requirements, certified copies of all payrolls and weekly statements of compliance from the contractor and each of his subcontractors shall be submitted to, and retained by, the State highway department. Such submittal may be made to the State resident engineer. The payrolls and statements shall be reviewed by the division labor compliance officer, or his representative, as necessary to insure that the labor requirements set forth in this manual are being complied with. Such reviews shall be performed on a sampling basis, the extent of which shall be determined by the division compliance officer. The review may be conducted at a location established by the State highway department for the retention of the payrolls and statements and shall include, but not be limited to:

412-1.1 A verification that all payrolls and statements and certifications are received;

412-1.2 A verification that the statements and certifications are properly executed;

412-1.3

A verification that all employees are paid at wages not less than those contained in the applicable wage decision, and that each basic hourly rate of pay plus the appropriate fringe benefit payments equals the prevailing wage rate;

412-1.4 A verification that only authorized deductions are included on the payroll; and

412-1.5

A verification that there is no disproportionate
employment of laborers, helpers or apprentices.

412-2

Discrepancies and Clerical Errors: Discrepancies and clerical errors which appear on payrolls may result from poor record keeping or a misunderstanding of the minimum wage requirements of the contracts. Consequently, such errors should be called to the attention of the contracting agency, or (if acceptable to the agency) to the resident or supervisory engineer on the job so that it may in turn be brought to the attention of the contractor and corrections made promptly. The original payroll should not be returned under any circumstances to the contractor. The corrections should be made by supplemental payrolls prepared and submitted in the same manner as the original payroll.

412-3 Sample Payroll: The sample payroll from, U.S.
Department of Labor Form WH-347 (consult Index for
location in Manual), is for contractors' optional use,
and is available for sale at the U.S. Government Printing
Office. Form WH-347 Inst. provides complete instructions
for proper use of the optional payroll form.

CHAPTER 413

THE COPELAND "ANTI-KICKBACK" ACT

413-1 Coverage: 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 make unauthorized deductions, or to exact rebates from the wage paid to any person employed by a contractor or subcontractor engaged in the construction, prosecution, completion, or repair of any public work, or work financed in full or in part by loans or grants from a Federal agency. The Secretary of Labor is authorized to promulgate regulations with respect to this Act. Except as is provided in the regulations issued by the Secretary of Labor, no deductions of any kind are authorized from the wages of employees. Contractors and subcontractors must submit weekly certifications of compliance within 7 days after the regular payment date of the payroll period.