mechanic, including watchpersons and guards, employed in
<br />violation of the clause set forth in paragraph 1. of this section,
<br />in the sum currently provided in 29 CFR 5.5(b)(2)* for each
<br />calendar day on which such individual was required or
<br />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 />* $31 as of January 15, 2023 (See 88 FR 88 FR 2210) as may
<br />be adjusted annually by the Department of Labor, pursuant to
<br />the Federal Civil Penalties Inflation Adjustment Act of 1990.
<br />3. Withholding for unpaid wages and liquidated damages
<br />a. Withholding process. The FHWA or the contracting
<br />agency may, upon its own action, or must, upon written
<br />request of an authorized representative of the Department of
<br />Labor, withhold or cause to be withheld from the contractor so
<br />much of the accrued payments or advances as may be
<br />considered necessary to satisfy the liabilities of the prime
<br />contractor or any subcontractor for any unpaid wages;
<br />monetary relief, including interest; and liquidated damages
<br />required by the clauses set forth in this section on this
<br />contract, any other Federal contract with the same prime
<br />contractor, or any other federally assisted contract subject to
<br />the Contract Work Hours and Safety Standards Act that is held
<br />by the same prime contractor (as defined in § 5.2). The
<br />necessary funds may be withheld from the contractor under
<br />this contract, any other Federal contract with the same prime
<br />contractor, or any other federally assisted contract that is
<br />subject to the Contract Work Hours and Safety Standards Act
<br />and is held by the same prime contractor, regardless of
<br />whether the other contract was awarded or assisted by the
<br />same agency, and such funds may be used to satisfy the
<br />contractor liability for which the funds were withheld.
<br />b. Priority to withheld funds. The Department has priority to
<br />funds withheld or to be withheld in accordance with Section IV
<br />paragraph 2.a. or paragraph 3.a. of this section, or both, over
<br />claims to those funds by:
<br />(1) A contractor's surety(ies), including without limitation
<br />performance bond sureties and payment bond sureties;
<br />(2) A contracting agency for its reprocurement costs;
<br />(3) A trustee(s) (either a court-appointed trustee or a U.S.
<br />trustee, or both) in bankruptcy of a contractor, or a contractor's
<br />bankruptcy estate;
<br />(4) A contractors assignee(s);
<br />(5) A contractor's successor(s); or
<br />(6) A claim asserted under the Prompt Payment Act, 31
<br />U.S.C. 3901-3907.
<br />4. Subcontracts. The contractor or subcontractor must insert
<br />in any subcontracts the clauses set forth in paragraphs 1.
<br />through 5. of this section and a clause requiring the
<br />subcontractors to include these clauses in any lower tier
<br />subcontracts. The prime contractor is responsible for
<br />compliance by any subcontractor or lower tier subcontractor
<br />with the clauses set forth in paragraphs 1. through 5. In the
<br />event of any violations of these clauses, the prime contractor
<br />and any subcontractor(s) responsible will be liable for any
<br />unpaid wages and monetary relief, including interest from the
<br />date of the underpayment or loss, due to any workers of lower -
<br />tier subcontractors, and associated liquidated damages and
<br />may be subject to debarment, as appropriate.
<br />5. Anti -retaliation. It is unlawful for any person to discharge,
<br />demote, intimidate, threaten, restrain, coerce, blacklist, harass,
<br />or in any other manner discriminate against, or to cause any
<br />person to discharge, demote, intimidate, threaten, restrain,
<br />coerce, blacklist, harass, or in any other manner discriminate
<br />against, any worker or job applicant for:
<br />a. Notifying any contractor of any conduct which the worker
<br />reasonably believes constitutes a violation of the Contract
<br />Work Hours and Safety Standards Act (CWHSSA) or its
<br />implementing regulations in this part;
<br />b. Filing any complaint, initiating or causing to be initiated
<br />any proceeding, or otherwise asserting or seeking to assert on
<br />behalf of themselves or others any right or protection under
<br />CWHSSA or this part;
<br />c. Cooperating in any investigation or other compliance
<br />action, or testifying in any proceeding under CWHSSA or this
<br />part; or
<br />d. Informing any other person about their rights under
<br />CWHSSA or this part.
<br />VI. SUBLETTING OR ASSIGNING THE CONTRACT
<br />This provision is applicable to all Federal -aid construction
<br />contracts on the National Highway System pursuant to 23 CFR
<br />635.116.
<br />1. The contractor shall perform with its own organization
<br />contract work amounting to not less than 30 percent (or a
<br />greater percentage if specified elsewhere in the contract) of
<br />the total original contract price, excluding any specialty items
<br />designated by the contracting agency. Specialty items may be
<br />performed by subcontract and the amount of any such
<br />specialty items performed may be deducted from the total
<br />original contract price before computing the amount of work
<br />required to be performed by the contractor's own organization
<br />(23 CFR 635.116).
<br />a. The term "perform work with its own organization" in
<br />paragraph 1 of Section VI refers to workers employed or
<br />leased by the prime contractor, and equipment owned or
<br />rented by the prime contractor, with or without operators.
<br />Such term does not include employees or equipment of a
<br />subcontractor or lower tier subcontractor, agents of the prime
<br />contractor, or any other assignees. The term may include
<br />payments for the costs of hiring leased employees from an
<br />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: (based on longstanding interpretation)
<br />(1) the prime contractor maintains control over the
<br />supervision of the day -today activities of the leased
<br />employees;
<br />(2) the prime contractor remains responsible for the quality
<br />of the work of the leased employees;
<br />
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