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Business Law: Regulatory or Compliance Requirements Related to the Employment Relationship

Identify a regulatory or compliance requirement related to the employment relationship. The requirement may involve workplace safety, wages and hours, or retirement. What law governs the requirement? What obligations does that requirement create for the employer and employee? What may managers do to ensure compliance?

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There are regulations regarding Federal Contracts concerning the prevailing wages in construction contracts. The law that regulates federal contracts is the Davis-Bacon and Related Acts (DBRA). Specifically, the Davis-Bacon and Related Acts (DBRA) are administered by the Wage and Hour Division. They "apply to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works." (http://www.dol.gov/compliance/guide/dbra.htm)

There are some basic requirements of DBRA for the employer and employee. For employers, the act requires:

- Requires that all contractors and subcontractors performing on federal contracts (and contractors or subcontractors performing on federally assisted contracts under the related Acts) in excess of $2,000 pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits listed in the contract's Davis-Bacon wage determination for corresponding classes of laborers and mechanics employed on similar projects in the area. Davis-Bacon labor standards clauses must be included in covered contracts.

- Apprentices may be employed at less than predetermined rates if they are in an apprenticeship program registered with the Department of Labor or with a state apprenticeship agency recognized by the Department. Trainees may be employed at less than predetermined rates if they are in a training program certified by the Department.

- Contractors and subcontractors on prime contracts in excess of $100,000 are required, pursuant to the Contract Work Hours and Safety Standards Act, to pay employees one and one-half times their basic rates of pay for all hours over 40 worked on covered contract work in a workweek. Covered contractors and subcontractors are also required to pay employees weekly and to submit weekly certified payroll records to the contracting agency.( excerpted from http://www.dol.gov/compliance/guide/dbra.htm)

For the employee, the Act provides certain rights, such as:

- The Davis-Bacon and Related Acts provide laborers and mechanics on covered federally financed or assisted construction ...

Solution Summary

This solution discusses regulatory and compliance requirements related to the employment relationship and ensuring compliance in 1000+ words with references.