The Copeland Act is also known as the Anti-Kickback Act of 1936, it is a United States federal law that was enacted to prevent contractors from reducing the wages of their workers by making illegal payments to their employees or to their representatives.
History and Amendment:
The Copeland Act (also known as the Anti-Kickback Act of 1936) is a United States federal law that was enacted as part of the Walsh-Healey Public Contracts Act in 1936. It was signed into law by President Franklin D. Roosevelt on June 30, 1936. The Act was intended to prevent contractors from reducing the wages of their workers by making illegal payments to their employees or to their representatives. The Act has not been amended since its passage in 1936. The Act prohibits contractors and subcontractors from paying kickbacks or making illegal payments to their employees or to their representatives, with the intent of reducing the wages of their workers. It also prohibits contractors and subcontractors from entering into agreements with labor organizations that would result in the reduction of wages or the displacement of workers.
The Copeland Act was signed into law by President Franklin D. Roosevelt on June 30, 1936, as a part of the Walsh-Healey Public Contracts Act.
The Act has not been amended since its passage in 1936.
Copeland Act Provisions:
- Prohibition of kickbacks: The Act prohibits contractors and subcontractors from paying kickbacks, or making illegal payments, to their employees or to their representatives, with the intent of reducing the wages of their workers.
- Prohibition of labor-management agreements: The Act prohibits contractors and subcontractors from entering into agreements with labor organizations that would result in the reduction of wages or the displacement of workers.
- Record-keeping: The Act requires contractors and subcontractors to keep records of the wages and benefits paid to their employees, and to make them available for inspection by the Department of Labor upon request.
Copeland Act Responsibilities and Accountabilities:
- Compliance with prohibition of kickbacks: Contractors and subcontractors are responsible for complying with the prohibition of kickbacks or illegal payments, with the intent of reducing the wages of their workers.
- Compliance with prohibition of labor-management agreements: Contractors and subcontractors are responsible for complying with the prohibition of labor-management agreements that would result in the reduction of wages or the displacement of workers.
- Record-keeping: Contractors and subcontractors are responsible for keeping records of the wages and benefits paid to their employees, and for making them available for inspection by the Department of Labor upon request.
Copeland Act Sanctions and Remedies
The Copeland Act (Anti-Kickback Act of 1936) provides several sanctions and remedies for violations of its provisions. These include:
- Civil Penalties: The Act authorizes the Department of Labor to impose civil penalties on contractors and subcontractors who violate its provisions. The fines can range from $5,000 to $10,000 per violation, depending on the severity of the violation.
- Termination of contract: The Act allows for the termination of a contract for violation of its provisions.
- Injunctions: The Act allows the Department of Labor to seek court injunctions to prevent or remedy violations of its provisions.
- Back Pay and Damages: The Act allows for reimbursement of lost wages and benefits to workers who were paid less than the prevailing wage rates and to recover damages for any damages suffered as a result of the violations.
- Debarment: Contractors and subcontractors who are found to have violated the Act may be debarred from bidding on future federal contracts.
- Criminal Penalties: Violations of the Act can also result in criminal penalties, including fines and imprisonment.
The Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) is responsible for enforcing the provisions of the Copeland Act, which is a federal law that prohibits contractors and subcontractors from paying kickbacks or making illegal payments to their employees or to their representatives, with the intent of reducing the wages of their workers. It also prohibits contractors and subcontractors from entering into agreements with labor organizations that would result in the reduction of wages or the displacement of workers. The penalties for violation of the act include fines, termination of contract, back pay and damages, debarment and other remedies.