Labor Laws

Following are applicable labor-related laws and descriptions of each.
Contract Work Hours and Safety Standards Act (
29 CFR Part 5
)
The Contract Work Hours and Safety Standards Act is a federal law that:
  • applies to all construction contracts
  • provides that any laborer, worker, mechanic, watchman or guard must be paid on the basis of a 40-hr. workweek. Overtime must be paid at 1-1/2 times the regular rate for every hour worked more than 40 hrs. per week. Overtime payments are based on time actually worked (including break periods but not lunch) and cannot include holiday, vacation, or other time paid but not worked and
  • gives the Department the primary responsibility for ensuring compliance with the requirements of this Act.
The Contract Work Hours and Safety Standards Act does
not
 apply to:
  • contractor’s supervisory and office employees
  • contractor’s or subcontractors furnishing supplies and equipment when such operations are located off the project site
  • contracts with a political subdivision and
  • contracts or work agreements for construction work or services with railroads or public utilities when the work or services is done by their employees.
Copeland Anti-Kickback Act (
29 CFR Part 3
)
The Copeland Anti-Kickback Act, is a federal law, that provides regulations concerning the construction and repair of public works contracts and subcontracts exceeding $2,000 and financed in whole or in part by federal funds. A portion of the Act concerns the payment of wages to the contractor and subcontractor employees. The Act authorizes the U.S. Department of Labor (USDOL) to develop regulations, including payroll records and submission requirements.
The Copeland Anti-Kickback Act permits certain payroll deductions, such as:
  • bona fide fringe benefits
  • any deduction made in compliance with the requirements of federal, state, or local law, such as income and social security taxes
  • any deduction required by court process, such as child support and
  • any deduction for the cost of safety equipment for the employee’s own protection such as safety glasses provided the cost is nominal and the employer is not otherwise required to furnish the equipment pursuant to law.
The Act also permits certain payroll deductions from the wages of laborers and mechanics when the employee’s written consent is provided, such as life insurance, hospitalization and medical insurance, retirement plan, vacation plan, safety shoes, and safety hats. Other deductions require a written application and approval of the USDOL. For example, gasoline and uniforms that are required by the employer as a condition of employment.
No monitoring responsibilities are required for certain types of personnel, contracts, and employers, such as:
  • supervisory and office employees
  • contractor’s or subcontractors furnishing supplies and equipment when such operations are located off the project site
  • contracts with a political subdivision or
  • contracts or work agreements for construction work or services with railroads or public utilities when the work or services is done by their employees.
Davis-Bacon and Related Acts (
29 CFR Parts 1, 3, 5, 6, and 7
)
These federal Acts apply to all federally funded construction contracts. The Davis-Bacon Act:
  • sets a prevailing minimum wage rate for various labor classifications predetermined by the U. S. Secretary of Labor to be paid to laborers and mechanics
  • requires the laborers and mechanics
    to
     be paid weekly at prescribed rates for all hours worked
  • provides that fringe benefits, or wage equivalent, are to be paid to laborers and mechanics when included in the U. S. Secretary of Labor’s prevailing minimum wage rate decision and
  • requires that the contractor post the prevailing minimum wage rates at the job site.
The Davis-Bacon Act does
not
 apply to:
  • contractor’s supervisory and office employees
  • contractors or subcontractors or suppliers furnishing supplies and equipment when such operations are located off-site of the project
  • contracts with a political subdivision or
  • contracts or work agreements for construction work or services with railroads or public utilities when the work or services is done by their employees.
Fair Labor Standards Act (
29 CFR Chapter V
)
The Fair Labor Standards Act (FLSA), a federal Act, applies to all contracts and requires contractor and subcontractor compliance with USDOL regulations.
Many of the requirements contained in this Act mirror those in the previous laws described. FLSA does, however, provide additional requirements regarding child labor, as follows.
  • Children of any age are generally permitted to work for businesses entirely owned by their parents,
    EXCEPT
     those under 16 years of age may not be employed in mining or manufacturing, and
    NO ONE
     under 18 years of age may be employed in any occupation determined to be hazardous by the U. S. Secretary of Labor.
  • Children under 14 years of age may not be employed on Department contracts.
  • Young person’s 14 and 15 years of age may be employed in non-manufacturing and non-hazardous jobs for limited periods of time and under specified conditions.
  • Young person’s 16 and 17 years of age may work an unlimited number of hours in any occupation other than those determined by the U. S. Secretary of Labor to be hazardous in nature.
  • Individuals 18 years of age and older are no longer subject to the Child Labor Provisions of the FLSA.
The FLSA establishes an 18-year minimum age for all nonagricultural occupations determined to be hazardous in nature by the U. S. Secretary of Labor. The following are considered hazardous occupations.
  • manufacturing or storing explosives
  • driving a motor vehicle or work as an outside helper on motor vehicles
  • mining
  • logging and sawmilling
  • power-driven woodworking machines*
  • exposure to radioactive substances and ionizing radiation
  • power-driven hoisting apparatus
  • power-driven metal-forming, punching and shearing machines*
  • power-driven meat-processing machines, slaughtering and meat packing plants*
  • power-driven bakery machines
  • power-driven paper-products machines*
  • manufacturing of brick, tile, and related products
  • power-driven circular saws, band saws, and guillotine shears*
  • wrecking, demolition, and ship-breaking operations
  • roofing operations*
  • trenching and excavation operations*
* Limited exemption is provided for apprentices and student-learners who are at least 16 years of age and enrolled in approved programs.
Additional detailed information may be obtained from the USDOL website regarding FLSA Child Labor Provisions.
Prevailing Wage Rates (Title 10, Texas Government Code, Chapter 2258)
Title 10, Chapter 2258
of the Texas Government Code requires payment of prevailing wage rates for each craft needed to execute a public works contract on behalf of the State of Texas. This statute mirrors the federal Davis-Bacon Act and may be referred to as a state-mandated “Little Davis-Bacon Act”. This statute:
  • sets a prevailing minimum wage rate for various labor classifications predetermined by the Secretary of Labor to be paid to laborers and mechanics, and
  • requires the contractor and all subcontractors keep, or cause to be kept, copies of weekly payrolls for review for a period of 3 years from the date of the completion of the contract.