22.406-10 Disposition of disputes concerning construction contract labor standards enforcement
Source: FAR 22.406-10 on acquisition.gov
FAR 22.406-10 establishes a structured process for resolving construction contract labor standards disputes, requiring contractors to follow specific appeal procedures and warning of potential debarment for serious violations.
Overview
FAR 22.406-10 outlines the procedures for resolving disputes between contracting officers and contractors regarding the enforcement of labor standards on construction contracts. It identifies common areas of disagreement, such as worker classification, wage rates, overtime, and withholding practices. The regulation establishes that most disputes are resolved administratively at the project level, but may involve the Department of Labor if necessary. Contractors must be informed that labor standards disputes are handled under a specific contract clause (52.222-14) and not the general disputes clause. Contractors have the right to appeal findings by submitting a statement of disagreement, which the contracting officer must forward to the Wage and Hour Division Administrator. The Administrator responds directly and further appeals follow Department of Labor procedures. The regulation also notes that debarment proceedings may be initiated for willful or aggravated violations of labor standards statutes.
Key Rules
- Areas of Dispute
- Disputes may arise over worker classification, hours, wage rates, overtime, withholding, and applicability of labor standards.
- Administrative Resolution
- Most disputes are settled at the project level, with escalation to the Department of Labor if needed.
- Corrective Action and Notification
- Contractors must be notified that disputes are handled under clause 52.222-14 and can appeal findings.
- Appeal Process
- Contractors submit a statement of disagreement; findings and statements are sent to the Wage and Hour Division.
- Further Appeals and Hearings
- The Administrator responds, and further appeals follow Department of Labor regulations (29 CFR 5.11, Part 6, Part 7).
- Debarment for Violations
- Willful or aggravated violations may result in debarment proceedings.
Responsibilities
- Contracting Officers: Identify and address labor standards disputes, inform contractors of procedures, transmit appeals, and comply with reporting requirements.
- Contractors: Respond to findings, submit appeals as needed, and comply with corrective actions.
- Agencies: Oversee dispute resolution and coordinate with the Department of Labor as required.
Practical Implications
- This section ensures a clear, structured process for resolving labor standards disputes in construction contracts, protecting both contractor and worker rights. Contractors must understand the specific dispute resolution process and the potential consequences of non-compliance, including debarment. Common pitfalls include failing to follow the correct appeal process or misunderstanding which contract clause governs labor standards disputes.
(a) The areas of possible differences of opinion between contracting officers and contractors in construction contract labor standards enforcement include-
(1) Misclassification of workers;
(2) Hours of work;
(3) Wage rates and payment;
(4) Payment of overtime;
(5) Withholding practices; and
(6) The applicability of the labor standards requirements under varying circumstances.
(b) Generally, these differences are settled administratively at the project level by the contracting agency. If necessary, these differences may be settled with assistance from the Department of Labor.
(c) When requesting the contractor to take corrective action in labor violation cases, the contracting officer shall inform the contractor of the following:
(1) Disputes concerning the labor standards requirements of the contract are handled under the contract clause at 52.222-14, Disputes Concerning Labor Standards, and not under the clause at 52.233-1, Disputes.
(2) The contractor may appeal the contracting officer’s findings or part thereof by furnishing the contracting officer a complete statement of the reasons for the disagreement with the findings.
(d) The contracting officer shall promptly transmit the contracting officer’s findings and the contractor’s statement to the Administrator, Wage and Hour Division.
(e) The Administrator, Wage and Hour Division, will respond directly to the contractor or subcontractor, with a copy to the contracting agency. The contractor or subcontractor may appeal the Administrator’s findings in accordance with the procedures outlined in Labor Department Regulations (29 CFR5.11). Hearings before administrative law judges are conducted in accordance with 29 CFR Part 6, and hearings before the Labor Department Administrative Review Board are conducted in accordance with 29 CFR Part 7.
(f) The Administrator, Wage and Hour Division, may institute debarment proceedings against the contractor or subcontractor if the Administrator finds reasonable cause to believe that the contractor or subcontractor has committed willful or aggravated violations of the Contract Work Hours and Safety Standards statute or the Copeland (Anti-Kickback) Act, or any of the applicable statutes listed in 29 CFR 5.1 other than the Construction Wage Rate Requirements statute, or has committed violations of the Construction Wage Rate Requirements statute that constitute a disregard of its obligations to employees or subcontractors under http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section3144&num=0&edition=prelim" target="_blank">40 U.S.C. 3144.