Contract compliance is basically a program, which, has been exclusively designed to ensure that employers who are working with the Federal and the local government comply with certain laid out rules and regulations, concerning the business. The entity which is associated with these procedures is the OFCCP or the Office of Federal Contract Compliance Programs. The OFCCP happens to be a wing of the Department of Labor of U.S – Employment Standards Administration.
The Labor Contract Compliance Program contains the following important sections amongst others:
· Payment of prevailing wage rates
· Records of certified payroll
· Non-discrimination in employment
· Prohibition of kickbacks
· Prohibition of fee acceptance
The payment of prevailing wage rates section comprises the rules and regulations concerning the current wage rates. The basic rule is that the contractors and the subcontractors who have been hired to complete the project should pay the workers the wages as mentioned in the labor code. However, if the estimated costs of the project are surpassed, it becomes mandatory to follow the other rules as specified under the sections within the same code.
The apprentices section requires the contractors and subcontractors to abide by the rules stated under section 1777.5. The penalties section comes into the picture if these contractors and subcontractors are not able to comply with the rules related to the prevailing wages and are awarded penalties. Parties can also be subjected to forfeitures and debarment if they fail to appoint registered apprentices.
The certified payroll records section ensures that the contractors and subcontractors maintain accurate payroll records with all the details of the apprentices, employees and workers. It also includes information like hours worked, contact details etc. Non-discrimination in Employment is an important element which specifies action against any employment discrimination. The kickbacks prohibition section bars employers to take wages illegally. Similarly, the rules stated under the section on prohibition of accepted fees, do not allow the mentioned parties to receive fees in lieu of registration for public work.