H. R. 2068—107
(d) REQUIREMENTS FOR ADVANCES.—An advance shall not be made
under subsection (a) for an individual project (including a regional,
metropolitan, or other areawide project) unless—
(1) the project is planned to be constructed within or over
a reasonable period of time considering the nature of the
project;
(2) the project conforms to an overall state, local, or regional
plan approved by a competent state, local, or regional authority;
and
(3) the public agency or Indian tribe formally contracts with
the Federal Government to complete the plan preparation
promptly and to repay part or all of the advance when due.
(e) REGULATIONS.—The Secretary may prescribe regulations to
carry out this chapter.
§ 3503. Revolving fund
(a) ESTABLISHMENT.—There is a revolving fund established by
the Secretary of Housing and Urban Development to provide
amounts for advances under this chapter. The fund comprises
amounts appropriated under this chapter and all repayments and
other receipts received in connection with advances made under
this chapter.
(b) AUTHORIZATIONS.—Not more than $70,000,000 may be appro-
priated to the revolving fund as necessary to carry out the purposes
of this chapter.
§ 3504. Surveys of public works planning
The Secretary of Housing and Urban Development may use
during a fiscal year not more than $100,000 of the amount in
the revolving fund established under section 3503 of this title
to conduct surveys of the status and current volume of state and
local public works planning and surveys of estimated requirements
for state and local public works. In conducting a survey, the Sec-
retary, may use or act through any department or agency of the
Federal Government, with the consent of the department or agency.
§ 3505. Forgiveness of outstanding advances
In accordance with accounting and other procedures the Secretary
of Housing and Urban Development prescribes, each advance made
by the Secretary under this chapter that had any principal amount
outstanding on February 5, 1988, was forgiven. The terms and
conditions of any contract, or any amendment to a contract, for
that advance with respect to any promise to repay the advance
were canceled.
CHAPTER 37—CONTRACT WORK HOURS AND SAFETY
STANDARDS
Sec.
3701.
Definition and application.
3702.
Work hours.
3703.
Report of violations and withholding of amounts for unpaid wages and liq-
uidated damages.
3704.
Health and safety standards in building trades and construction industry.
3705.
Safety programs.
3706.
Limitations, variations, tolerances, and exemptions.
3707.
Contractor certification or contract clause in acquisition of commercial items
not required.
3708.
Criminal penalties.
H. R. 2068—108
§ 3701. Definition and application
(a) DEFINITION.—In this chapter, the term ‘‘Federal Government’’
has the same meaning that the term ‘‘United States’’ had in the
Contract Work Hours and Safety Standards Act (Public Law 87–
581, 76 Stat. 357).
(b) APPLICATION.—
(1) CONTRACTS.—This chapter applies to—
(A) any contract that may require or involve the employ-
ment of laborers or mechanics on a public work of the
Federal Government, a territory of the United States, or
the District of Columbia; and
(B) any other contract that may require or involve the
employment of laborers or mechanics if the contract is
one—
(i) to which the Government, an agency or
instrumentality of the Government, a territory, or the
District of Columbia is a party;
(ii) which is made for or on behalf of the Government,
an agency or instrumentality, a territory, or the Dis-
trict of Columbia; or
(iii) which is a contract for work financed at least
in part by loans or grants from, or loans insured or
guaranteed by, the Government or an agency or
instrumentality under any federal law providing wage
standards for the work.
(2) LABORERS AND MECHANICS.—This chapter applies to all
laborers and mechanics employed by a contractor or subcon-
tractor in the performance of any part of the work under
the contract—
(A) including watchmen, guards, and workers performing
services in connection with dredging or rock excavation
in any river or harbor of the United States, a territory,
or the District of Columbia; but
(B) not including an employee employed as a seaman.
(3) EXCEPTIONS.—
(A) THIS CHAPTER.—This chapter does not apply to—
(i) a contract for—
(I) transportation by land, air, or water;
(II) the transmission of intelligence; or
(III) the purchase of supplies or materials or
articles ordinarily available in the open market;
(ii) any work required to be done in accordance with
the provisions of the Walsh-Healey Act (41 U.S.C. 35
et seq.); and
(iii) a contract in an amount that is not greater
than $100,000.
(B) SECTION 3902.—Section 3902 of this title does not
apply to work where the assistance described in subsection
(a)(2)(C) from the Government or an agency or instrumen-
tality is only a loan guarantee or insurance.
§ 3702. Work hours
(a) STANDARD WORKWEEK.—The wages of every laborer and
mechanic employed by any contractor or subcontractor in the
performance of work on a contract described in section 3701 of
this title shall be computed on the basis of a standard workweek
of 40 hours. Work in excess of the standard workweek is permitted
H. R. 2068—109
subject to this section. For each workweek in which the laborer
or mechanic is so employed, wages include compensation, at a
rate not less than one and one-half times the basic rate of pay,
for all hours worked in excess of 40 hours in the workweek.
(b) CONTRACT REQUIREMENTS.—A contract described in section
3701 of this title, and any obligation of the Federal Government,
a territory of the United States, or the District of Columbia in
connection with that contract, must provide that—
(1) a contractor or subcontractor contracting for any part
of the contract work which may require or involve the employ-
ment of laborers or mechanics shall not require or permit
any laborer or mechanic, in any workweek in which the laborer
or mechanic is employed on that work, to work more than
40 hours in that workweek, except as provided in this chapter;
and
(2) when a violation of clause (1) occurs, the contractor and
any subcontractor responsible for the violation are liable—
(A) to the affected employee for the employee’s unpaid
wages; and
(B) to the Government, the District of Columbia, or a
territory for liquidated damages as provided in the contract.
(c) LIQUIDATED DAMAGES.—Liquidated damages under subsection
(b)(2)(B) shall be computed for each individual employed as a laborer
or mechanic in violation of this chapter and shall be equal to
$10 for each calendar day on which the individual was required
or permitted to work in excess of the standard workweek without
payment of the overtime wages required by this chapter.
(d) AMOUNTS WITHHELD TO SATISFY LIABILITIES.—Subject to sec-
tion 3703 of this title, the governmental agency for which the
contract work is done or which is providing financial assistance
for the work may withhold, or have withheld, from money payable
because of work performed by a contractor or subcontractor,
amounts administratively determined to be necessary to satisfy
the liabilities of the contractor or subcontractor for unpaid wages
and liquidated damages as provided in this section.
§ 3703. Report of violations and withholding of amounts for
unpaid wages and liquidated damages
(a) REPORTS OF INSPECTORS.—An officer or individual designated
as an inspector of the work to be performed under a contract
described in section 3701 of this title, or to aid in the enforcement
or fulfillment of the contract, on observation or after investigation
immediately shall report to the proper officer of the Federal Govern-
ment, a territory of the United States, or the District of Columbia
all violations of this chapter occurring in the performance of the
work, together with the name of each laborer or mechanic who
was required or permitted to work in violation of this chapter
and the day the violation occurred.
(b) WITHHOLDING AMOUNTS.—
(1) DETERMINING
AMOUNT.—The amount of unpaid wages
and liquidated damages owing under this chapter shall be
determined administratively.
(2) AMOUNT DIRECTED TO BE WITHHELD.—The officer or indi-
vidual whose duty it is to approve the payment of money
by the Government, territory, or District of Columbia in connec-
tion with the performance of the contract work shall direct
the amount of—
H. R. 2068—110
(A) liquidated damages to be withheld for the use and
benefit of the Government, territory, or District; and
(B) unpaid wages to be withheld for the use and benefit
of the laborers and mechanics who were not compensated
as required under this chapter.
(3) PAYMENT.—The Comptroller General shall pay the amount
administratively determined to be due directly to the laborers
and mechanics from amounts withheld on account of underpay-
ments of wages if the amount withheld is adequate. If the
amount withheld is not adequate, the Comptroller General
shall pay an equitable proportion of the amount due.
(c) RIGHT OF ACTION AND INTERVENTION AGAINST CONTRACTORS
AND SURETIES.—If the accrued payments withheld under the terms
of the contract are insufficient to reimburse all the laborers and
mechanics who have not been paid the wages required under this
chapter, the laborers and mechanics, in the case of a department
or agency of the Government, have the same right of action and
intervention against the contractor and the contractor’s sureties
as is conferred by law on persons furnishing labor or materials.
In those proceedings it is not a defense that the laborers and
mechanics accepted or agreed to accept less than the required
rate of wages or voluntarily made refunds.
(d) REVIEW PROCESS.—
(1) TIME LIMIT FOR APPEAL.—Within 60 days after an amount
is withheld as liquidated damages, any contractor or subcon-
tractor aggrieved by the withholding may appeal to the head
of the agency of the Government or territory for which the
contract work is done or which is providing financial assistance
for the work, or to the Mayor of the District of Columbia
in the case of liquidated damages withheld for the use and
benefit of the District.
(2) REVIEW BY AGENCY HEAD OR MAYOR.—The agency head
or Mayor may review the administrative determination of liq-
uidated damages. The agency head or Mayor may issue a
final order affirming the determination or may recommend
to the Secretary of Labor that an appropriate adjustment in
liquidated damages be made, or that the contractor or subcon-
tractor be relieved of liability for the liquidated damages, if
it is found that the amount is incorrect or that the contractor
or subcontractor violated this chapter inadvertently, notwith-
standing the exercise of due care by the contractor or subcon-
tractor and the agents of the contractor or subcontractor.
(3) REVIEW BY SECRETARY.—The Secretary shall review all
pertinent facts in the matter and may conduct any investigation
the Secretary considers necessary in order to affirm or reject
the recommendation. The decision of the Secretary is final.
(4) 
JUDICIAL
ACTION.—A 
contractor 
or 
subcontractor
aggrieved by a final order for the withholding of liquidated
damages may file a claim in the United States Court of Federal
Claims within 60 days after the final order. A final order
of the agency head, Mayor, or Secretary is conclusive with
respect to findings of fact if supported by substantial evidence.
(e) APPLICABILITY OF OTHER LAWS.—
(1) REORGANIZATION PLAN.—Reorganization Plan Numbered
14 of 1950 (eff. May 24, 1950, 64 Stat. 1267) applies to this
chapter.