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Minnesota Department of Transportation EEO Special Provisions <br />Office of Civil Rights 07/12 <br />REQUIRED CONTRACT PROVISIONS (cont.) <br />c. The penalty for making false statements is prescribed in the <br />U.S. Criminal Code, 18 U.S.C. 1001. <br />V. CONTRACT WORK HOURS AND SAFETY <br />STANDARDS ACT <br />The following clauses apply to any Federal -aid construction <br />contract in an amount in excess of $100,000 and subject to the <br />overtime provisions of the Contract Work Hours and Safety <br />Standards Act. These clauses shall be inserted in addition to the <br />clauses required by 29 CFR 5.5(a) or 29 CFR 4.6. As used in <br />this paragraph, the terms laborers and mechanics include <br />watchmen and guards. <br />1. Overtime requirements. No contractor or subcontractor <br />contracting for any part of the contract work which may require <br />or involve the employment of laborers or mechanics shall require <br />or permit any such laborer or mechanic in any workweek in <br />which he or she is employed on such work to work in excess of <br />forty hours in such workweek unless such laborer or mechanic <br />receives compensation at a rate not less than one and one-half <br />times the basic rate of pay for all hours worked in excess of forty <br />hours in such workweek. <br />2. Violation; liability for unpaid wages; liquidated damages. <br />In the event of any violation of the clause set forth in paragraph <br />(1.) of this section, the contractor and any subcontractor <br />responsible therefor shall be liable for the unpaid wages. In <br />addition, such contractor and subcontractor shall be liable to the <br />United States (in the case of work done under contract for the <br />District of Columbia or a territory, to such District or to such <br />territory), for liquidated damages. Such liquidated damages shall <br />be computed with respect to each individual laborer or mechanic, <br />including watchmen and guards, employed in violation of the <br />clause set forth in paragraph (1.) of this section, in the sum of <br />$10 for each calendar day on which such individual was required <br />or permitted to work in excess of the standard workweek of forty <br />hours without payment of the overtime wages required by the <br />clause set forth in paragraph (1.) of this section. <br />3. Withholding for unpaid wages and liquidated damages. The <br />FHWA or the contacting agency shall upon its own action or <br />upon written request of an authorized representative of the <br />Department of Labor withhold or cause to be withheld, from any <br />moneys payable on account of work performed by the contractor <br />or subcontractor under any such contract or any other Federal <br />contract with the same prime contractor, or any other federally - <br />assisted contract subject to the Contract Work Hours and Safety <br />Standards Act, which is held by the same prime contractor, such <br />sums as may be determined to be necessary to satisfy any <br />liabilities of such contractor or subcontractor for unpaid wages <br />and liquidated damages as provided in the clause set forth in <br />paragraph (2.) of this section. <br />4. Subcontracts. The contractor or subcontractor shall insert in <br />any subcontracts the clauses set forth in paragraph (1.) through <br />(4.) of this section and also a clause requiring the subcontractors <br />to include these clauses in any lower tier subcontracts. The prime <br />contractor shall be responsible for compliance by any <br />subcontractor or lower tier subcontractor with the clauses set <br />forth in paragraphs (1.) through (4.) of this section <br />VI. SUBLETTING OR ASSIGNING THE CONTRACT <br />This provision is applicable to all Federal -aid construction <br />contracts on the National Highway System. <br />1. The contractor shall perform with its own organization <br />contract work amounting to not less than 30 percent (or a greater <br />percentage if specified elsewhere in the contract) of the total <br />original contract price, excluding any specialty items designated <br />by the contracting agency. Specialty items may be performed by <br />subcontract and the amount of any such specialty items <br />performed may be deducted from the total original contract price <br />before computing the amount of work required to be performed <br />by the contractor's own organization (23 CFR 635.116). <br />a. The term "perform work with its own organization" refers to <br />workers employed or leased by the prime contractor, and <br />equipment owned or rented by the prime contractor, with or <br />without operators. Such term does not include employees or <br />equipment of a subcontractor or lower tier subcontractor, agents <br />of the prime contractor, or any other assignees. The term may <br />include payments for the costs of hiring leased employees from <br />an employee leasing firm meeting all relevant Federal and State <br />regulatory requirements. Leased employees may only be <br />included in this term if the prime contractor meets all of the <br />following conditions: <br />(1) the prime contractor maintains control over the supervision of <br />the day-to-day activities of the leased employees; <br />(2) the prime contractor remains responsible for the quality of the <br />work of the leased employees; <br />(3) the prime contractor retains all power to accept or exclude <br />individual employees from work on the project; and <br />(4) the prime contractor remains ultimately responsible for the <br />payment of predetermined minimum wages, the submission of <br />payrolls, statements of compliance and all other Federal <br />regulatory requirements. <br />b. "Specialty Items" shall be construed to be limited to work <br />that requires highly specialized knowledge, abilities, or <br />equipment not ordinarily available in the type of contracting <br />organizations qualified and expected to bid or propose on the <br />contract as a whole and in general are to be limited to minor <br />components of the overall contract. <br />2. The contract amount upon which the requirements set forth in <br />paragraph (1) of Section VI is computed includes the cost of <br />material and manufactured products which are to be purchased or <br />produced by the contractor under the contract provisions. <br />3. The contractor shall furnish (a) a competent superintendent or <br />supervisor who is employed by the firm, has full authority to <br />direct performance of the work in accordance with the contract <br />requirements, and is in charge of all construction operations <br />(regardless of who performs the work) and (b) such other of its <br />EEO Page 34 <br />