22.403-2 Copeland Act
Source: FAR 22.403-2 on acquisition.gov
The Copeland Act prohibits wage kickbacks on federal construction projects and requires weekly certified payroll reporting to ensure worker protections.
Overview
- FAR 22.403-2 implements the Copeland (Anti-Kickback) Act, which prohibits contractors and subcontractors on federally funded construction or repair projects from coercing employees to give up any part of their rightful wages. It also establishes mandatory wage reporting and compliance requirements for these contracts.
Key Rules
- Anti-Kickback Prohibition
- It is illegal to force or intimidate employees into giving up any portion of their wages on federal construction or repair projects.
- Weekly Compliance Statement
- Contractors and subcontractors must submit a weekly statement certifying the wages paid to each employee.
- Contract Clause Requirement
- All applicable contracts must include the clause at FAR 52.222-10, mandating compliance with Department of Labor regulations under the Copeland Act.
Responsibilities
- Contracting Officers: Ensure inclusion of the required Copeland Act clause in contracts and monitor contractor compliance.
- Contractors: Must not coerce employees regarding wages and must submit accurate weekly wage compliance statements.
- Agencies: Oversee enforcement and reporting, and ensure contractors adhere to Department of Labor regulations.
Practical Implications
- This regulation protects workers from wage theft and ensures transparency in wage payments on federally funded construction projects.
- Contractors must establish robust payroll and reporting systems to avoid violations.
- Non-compliance can result in severe penalties, contract termination, or debarment.
The Copeland (Anti-Kickback) Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title18-section874&num=0&edition=prelim" target="_blank">18 U.S.C.874 and http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section3145&num=0&edition=prelim" target="_blank">40 U.S.C. 3145) makes it unlawful to induce, by force, intimidation, threat of procuring dismissal from employment, or otherwise, any person employed in the construction or repair of public buildings or public works, financed in whole or in part by the United States, to give up any part of the compensation to which that person is entitled under a contract of employment. The Copeland Act also requires each contractor and subcontractor to furnish weekly a statement of compliance with respect to the wages paid each employee during the preceding week. Contracts subject to the Copeland Act shall contain a clause (see 52.222-10) requiring contractors and subcontractors to comply with the regulations issued by the Secretary of Labor under the Copeland Act.