402-2.2 Continued

(b) Division Engineer: Division engineers are
responsible for carrying out all applicable
labor laws, regulations, and policy and
procedural matters. They shall insure

that:

(1) All reported violations are promptly
and fully investigated;

402-3 Violations: The required contract clauses provide that violation of the provisions may be grounds for termination of the contract. The contract labor standards clauses further provide that there may be withheld from the contractor so much of the amounts due the contractor as may be considered necessary to insure payment to laborers and mechanics employed on the work by the contractor or any subcontractor the full amount of wages (including fringe benefits) required by the contract. Further, the contractor may be administratively debarred from further Government contract business for aggravated or willful violations.

CHAPTER 403

WORK HOURS ACT REQUIREMENTS

403-1 Coverage: The Work Hours and Safety Act of 1962 (40 U.S.C. 327-333; 28 U.S.C. 1499) provides, in general, that the wages of every laborer and mechanic employed by any contractor or subcontractor in his performance of work in connection with the initial construction of the Federal-aid systems shall be computed on the basis of a standard workday of 8 hours and a standard workweek of 40 hours, and that work in excess of 8 hours per day or 40 hours per week, shall be compensated for at rates not less than one and one-half times the basic rate of pay. The Act necessitates that all contracts requiring the employment of laborers and mechanics (and watchmen and guards) in the performance of work in connection with the initial construction of the Federal-aid systems contain implementing provisions which will render the contractor and any subcontractor responsible for a violation, liable to the affected employees for their unpaid wages, and to the United States for liquidated damages. The Comptroller General of the United States is authorized to pay affected employees their unpaid overtime wage directly from the funds which may be withheld from the contractor. The Act establishes an appeals system, and makes intentional violations of the Act a Federal criminal misdemeanor. The 1969 construction industry health and safety standards amendments added by P.L. 91-54 (83 Stat. 96-98) are to be administered by the U.S. Secretary of Labor.

403-2 Calendar Day: The calendar day is the standard unit for determining compliance with the requirements of the Work Hours and Safety Act of 1962.

403-3 Basic Rate: The "basic rate" cannot be less than the greater of (1) The contract minimum rate, or (2) The minimum rate under the Fair Labor Standards Act of 1938, as amended, or (3) The straight-time hourly rate actually being paid. The basic rate does not include fringe benefit payments made in kind or in cash. The basic rate of pay under section 102 of the Work Hours and Safety Act of 1962 may also be computed as an hourly rate equivalent to the rate on which time and one-half overtime compensation may be computed and paid under section 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 207), as interpreted in part 778 of Title 29, Code of Federal Regulations.

403-3.1

Pursuant to title 29, United State Code,
section 207 (e) (1) through (7), the basic
rate for an employee includes all
remuneration for employment paid to, or
on behalf of the employee, but it does not
include:

(a)

(b)

Sums paid as gifts; payments in the nature of gifts made at Christmas time or on other special occasions, as a reward for service, the amounts of which are not measured by or dependent on hours worked, production, or efficiency;

Payments made for occasional periods when no work is performed due to vacation, holiday, illness, failure of the employer to provide sufficient work, or other similar cause; reasonable payments for traveling expenses, or other expenses, incurred by an employee in the furtherance of his employer's interests and properly

403-3.1(Continued

(c)

(a)

reimbursable by the employer; and other
similar payments to an employee which are
not made as compensation for his hours
of employment;

Sums paid in recognition of services per-
formed during a given period if either,
(a) both the fact that payment is to be
made and the amount of the payment are
determined at the sole discretion of
the employer at or near the end of the
period and not pursuant to any prior
contract, agreement, or promise causing
the employee to expect such payments
regularly; or (b) the payments are made
pursuant to a bona fide profit-sharing
plan or trust or bona fide thrift or
savings plan, meeting the requirements
of the Administrator set forth in
appropriate regulations which he shall
issue, having due regard among other
relevant factor, to the extent to which
the amounts paid to the employee are
determined without regard to hours of
work, production, or efficiency;

Contributions irrevocably made by an
employer to a trustee or third person
pursuant to a bona fide plan for pro-
viding old-age, retirement, life,

accident, or health insurance or similar
benefits for employees;

403-3.1 Continued

(e)

(f)

(g)

Extra compensation provided by a
permium rate paid for certain hours
worked by the employee in any day or
workweek because such hours are hours
worked in excess of eight in a day or in
execess of the maximum workweek appli-
cable to such employee under subsection
(a) of this section or in excess of the
employee's normal working hours or regular
working hours, as the case may be;

Extra compensation provided by a premium rate paid for work by the employee on Saturdays, Sundays, holidays, or regular days of rest, or on the sixth or seventh day of the workweek, where such premium rate is not less than one and one-half times the rate established in good faith for like work performed in nonovertime hours on other days; or

Extra compensation provided by a premium
rate paid to the employee, in pursuance
of an applicable employment contract or
collective-bargaining agreement, for work
outside of the hours established in good
faith by the contract or agreement as the
basic, normal, or regular workday (not
exceeding eight hours) or workweek (not
exceeding the maximum workweek applicable
to such employee under subsection (a)
of this section, where such premium rate
is not less than one and one-half times
the rate established in good faith by the
contract or agreement for like work

performed during such workday or workweek.