Davis-Bacon and Related Acts Coverage

CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (CWHSSA)

Purpose of CWHSSA

• Enacted in 1962, the “Contract Work Hours Standards Act” consolidated a number of “eight hour” laws, some dating back to the 1890s, and originally provided for overtime pay after 8 hours a day and after 40 hours a week on federal construction contracts. Amendments in 1969 added safety and health provisions and revised the name of the law to be the “Contract Work Hours and Safety Standards Act.” Pub. L. 91-54, August 9, 1969.

CWHSSA requirements – 40 USC 3702

• CWHSSA requires overtime pay for laborers and mechanics, including guards and watchmen, at a rate of one and one-half times the basic rate of pay for hours worked in excess of 40 in a workweek on covered contracts.
• In addition to back wages for unpaid overtime hours, CWHSSA also provides for an assessment of liquidated damages for each day that each laborer and mechanic worked without payment of the required overtime compensation. ( Seehttp://www.dol.gov/whd/govcontracts/cwhssa.htm#cmp for the current liquidated damages penalty amount for CWHSSA.)
• In those situations where there are concurrent FLSA and CWHSSA violations, the back wages are generally computed and reported under CWHSSA rather than FLSA. This is because under CWHSSA:
  • Back wages due covered workers can be secured by agency withholding of funds due the contractor on account of work performed by the contractor or subcontractors.
  • Liquidated damages may be assessed against the contractor.
  • Debarment action may be initiated.

  CWHSSA coverage

  • CWHSSA applies to certain DBA , Related Act , and SCA contracts:
    • CWHSSA applies to DBA and SCA contracts in excess of $150,000 that are subject to Federal Acquisition Regulation (FAR) procurement. 48 CFR 22.305.
    • CWHSSA also applies to DBA and SCA contracts in excess of $100,000 that are not subject to FAR procurement, such as certain concessions contracts on military bases.
    • CWHSSA also applies to Related Act contracts in excess of $100,000, but not where the federal assistance is only in the nature of a loan guarantee or insurance in accordance with the statutory language. 40 USC 3701(b)(3)(B). For example, HUD assistance in the form of loan guarantees under the National Housing Act is not subject to CWHSSA.

    CWHSSA exceptions – 40 USC 3701(b)(3) and 3706 and 29 CFR 5.15

    • CWHSSA does not apply to contracts for:
      • Transportation by land, air or water.
      • Transmission of intelligence.
      • Purchase of supplies or materials or articles ordinarily available in the open market.
      • Work required to be done in accordance with the provisions of the PCA.
      • Construction or services where the contract is subject to FAR procurement and not greater than $150,000.
      • Construction or services where the contract is not subject to FAR procurement and not greater than $100,000.
      • Agreements entered into by or on behalf of the Commodity Credit Corporation for storage in or handling by commercial warehouses of certain items including grain sorghums, beans, seeds, cotton, wool and naval stores.
      • Certain sales of surplus power by the Tennessee Valley Authority (TVA).
      • Work performed in a workplace within a foreign country.
      • Work performed within a territory under U.S. jurisdiction other than a state of the U.S.; the District of Columbia; Puerto Rico; the Virgin Islands; Outer Continental Shelf lands defined in the Outer Continental Shelf Lands Act (ch. 345, 67 Stat. 462); American Samoa; Guam; Wake Island; and Johnston Island.