Senate Bill To Reduce Paper Work In Enforcement of Government Construction Contract Provisions Relating to Wage Rates Paid to Employees

Senate bill 1681 would amend the Copeland Anti-Kickback Act to eliminate the requirement that construction contractors submit weekly statements to the federal government on the wages paid to each employee. Such weekly payroll reporting requirements result in unnecessary contractor costs, estimated at about $190 million a year, which are passed on to the government. The weekly submission of certified payrolls is not required under other laws containing labor standard provisions. The amendment would remove the requirement that the construction contractors submit to the federal government the weekly statement with respect to the wages paid each employee during the preceding week. Instead, it would require that the contractor submit, at the beginning and the end of the contract or subcontract, a notarized statement with respect to the wages to be paid and the wages paid during the contract or subcontract period. The proposed amendment would be an improvement over the current requirements, but the language of S. 1681 may need revision in order to ensure that the intent to reduce the paper work on construction contractors is actually carried out. Although the Copeland Act requires only the weekly submission of a statement regarding the wages paid, Department of Labor (DOL) regulations require the contractors to submit weekly copies of the detailed payroll records. Unfortunately, the proposed legislation does not deal with the submission of the weekly payroll records required by DOL regulations.