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(ii) Priority to withheld funds. The Department has priority to funds withheld or to be withheld in
<br />accordance with paragraph (a)(2)(i) or (b)(3)(i) of this section, or both, over claims to those funds
<br />by:
<br />(A) A contractor's surety(ies), including without limitation performance bond sureties and
<br />payment bond sureties;
<br />(B) A contracting agency for its re -procurement costs;
<br />(C) A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a
<br />contractor, or a contractor's bankruptcy estate;
<br />(D) A contractor's assignee(s);
<br />(E) A contractor's successor(s); or
<br />(F) A claim asserted under the Prompt Payment Act, 31 U.S.C. 3901-3907.
<br />(4) Subcontracts. The contractor or subcontractor must insert in any subcontracts the clauses set forth
<br />in paragraphs (b)(1) through (5) of this section and a clause requiring the subcontractors to include
<br />these clauses in any lower tier subcontracts. The prime contractor is responsible for compliance by any
<br />subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (b)(1) through (5). In
<br />the event of any violations of these clauses, the prime contractor, and any subcontractor(s) responsible
<br />will be liable for any unpaid wages and monetary relief, including interest from the date of the
<br />underpayment or loss, due to any workers of lower -tier subcontractors, and associated liquidated
<br />damages and may be subject to debarment, as appropriate.
<br />(5) Anti -retaliation. It is unlawful for any person to discharge, demote, intimidate, threaten,
<br />restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any
<br />person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any
<br />other manner discriminate against, any worker or job applicant for:
<br />(i) Notifying any contractor of any conduct which the worker reasonably believes constitutes a
<br />violation of the Contract Work Hours and Safety Standards Act (CWHSSA) or its implementing
<br />regulations in this part;
<br />(ii) Filing any complaint, initiating, or causing to be initiated any proceeding, or otherwise
<br />asserting or seeking to assert on behalf of themselves or others any right or protection under
<br />CWHSSA or this part;
<br />(iii) Cooperating in any investigation or other compliance action, or testifying in any proceeding
<br />under CWHSSA or this part; or
<br />(iv) Informing any other person about their rights under CWHSSA or this part.
<br />C. Further Compliance with the Contract Work Hours and Safety Standards Act
<br />(1) The contractor or subcontractor shall maintain payrolls and basic payroll records during the
<br />course of the work and shall preserve them for a period of three years from the completion of the
<br />contract for all laborers and mechanics, including guards and watchmen, working on the contract.
<br />Such records shall contain the name and address of each such employee, social security number,
<br />correct classifications, hourly rates of wages paid, daily and weekly number of hours worked,
<br />deductions made, and actual wages paid.
<br />(2) Records to be maintained under this provision shall be made available by the contractor or
<br />subcontractor for inspection, copying, or transcription by authorized representatives of the
<br />Department of Homeland Security, the Federal Emergency Management Agency, and the
<br />Department of Labor, and the contractor or subcontractor will permit such representatives to
<br />interview employees during working hours on the job.
<br />D. Clean Air Act and Federal Water Pollution Control Act:
<br />(1) Clean Air Act.
<br />(a) The contractor agrees to comply with all applicable standards, orders or regulations issued
<br />pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.
<br />(b) The contractor agrees to report each violation to the OWNER and understands and agrees that
<br />the OWNER will, in turn, report each violation as required to assure notification to the Federal
<br />Agreement - 00520 - 11
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