Copeland Anti-Kickback Act - Indiana

Summary of differences between federal and state regulations

There is not a comparable act or regulation for the State of Indiana. Indiana incorporates the Act into construction contracts when Federal funds are involved.

A typical contract statement might read:

All contracts for Davis-Bacon projects awarded with Indiana Housing Finance Authority Community Development Block Grant (CDBG) or HOME Investment Partnerships Program (HOME) funds must contain the following provisions (in addition to those outlined in Exhibit F)

Copeland “Anti-Kickback” Act (18 U.S.C. 874 and 40 U.S.C. 276c)

For all contracts and subcontractors executed for projects that have been determined to require Davis-Bacon wages, the contractor or subcontractor shall comply with the Copeland “Anti-Kickback” Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled. The recipient shall report all suspected or reported violations to the Federal awarding agency.

Summary of Federal Act

The "Anti-Kickback" section of the Copeland Act applies to all contractors and subcontractors performing on any federally funded or assisted contract for the construction, prosecution, completion or repair of any public building or public work, except contracts for which the only federal assistance is a loan guarantee. This provision applies even where no labor standards statute covers the contract.

The regulations pertaining to Copeland Act payroll deductions and submittal of the weekly statement of compliance apply only to contractors and subcontractors performing on federally funded contracts in excess of $2,000 and federally-assisted contracts in excess of $2,000 that are subject to federal wage standards.

The "Anti-Kickback" section of the Act precludes a contractor or subcontractor from in any way inducing an employee to give up any part of the compensation to which he or she is entitled under his or her contract of employment. The Act and implementing regulations require a contractor and subcontractor to submit a weekly statement of the wages paid to each employee performing on covered work during the preceding payroll period. The regulations also list payroll deductions that are permissible without the approval of the Secretary of Labor and those deductions that require consent of the Secretary of Labor.

State

Contacts

None.

Regulations

None.

Federal

Contact

Employment Standards Administration Wage and Hour Division, Department of Labor

Regulations

29 CFR 3, 48 CFR 22