| A contract compliance program is designed to make | | | | Certified Payroll Records: This section is designed to |
| sure that employers doing business with the local and | | | | make sure that contractors and subcontractors keep |
| Federal government, etc. comply with the laws and/or | | | | accurate payroll records which should show all the |
| regulations which usually require non-discrimination and | | | | details about the employees, apprentices and workers. |
| and affirmative action in employments. The entity | | | | Information such as hours worked, overtime, social |
| related to these procedures is the Office of Federal | | | | securities, names and addresses are required. These |
| Contract Compliance Programs also referred to as | | | | documents should be certified and made available for |
| 'OFCCP' which is part the U.S. Department of Labor's | | | | inspection throughout business hours and submitted to |
| Employment Standards Administration. | | | | to the district every week as well. |
| According to the Labor Compliance Program and labor | | | | Non-discrimination in Employment: This is actually pretty |
| law requirements the contract should address the | | | | obvious but required element in this type of contract. |
| following procedures: | | | | Employment discrimination is prohibited under the |
| The Payment of Prevailing Wage Rates: This section | | | | government, labor, public codes, etc. It is also required |
| is all about the regulations and laws relating to | | | | for employers to to keep an 'Equal employment |
| prevailing wage rates. Basically contractors and the | | | | poster' at the job site for applicants to see. |
| subcontractors hired to complete the job are required | | | | Kickbacks Prohibited: This is also a pretty important |
| to pay workers the wages specified on the labor | | | | section of the contract, which establishes that |
| code. If the project goes over the estimated amounts | | | | employers are not allowed to extract 'kickback' or to |
| then it is necessary to refer to more specific sections | | | | take wages illegally from an employee wage. |
| under the same code. All information pertaining to | | | | Acceptance of fees prohibited: As the title implies, |
| wages should be posted for all workers to view. | | | | contractors and subcontractors are not allowed to |
| Apprentices: Under this section contractors and | | | | receive 'fees' in order to register or filling work orders |
| subcontractors are required to follow the labor code | | | | which enables a person for public work. |
| section 1777.5 by hiring registered apprentices at the | | | | As you can see a contract compliance program |
| time to execute a public work project. | | | | involves several requirements which need to be fulfilled |
| Penalties: As expected, if the contractor or | | | | in order not to brake any laws or codes. Other equally |
| subcontractor fails to comply with the laws related to | | | | important sections often included in such contracts |
| prevailing wages there will be penalties. These are also | | | | include, but are not limited to: Workers Compensation |
| applicable if the parties mentioned fail to employ | | | | Insurance, licensing, prohibition of unfair competition, |
| registered apprentices which also includes forfeitures | | | | O.S.H.A. regulations, subcontractor listings, etc. |
| and debarments. | | | | |