Disposition of disputes concerning construction contract labor standards enforcement
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.