The Copeland “Anti-Kickback” Act: Safeguarding Employee Compensation

Definition & Meaning

The Copeland "œAnti-Kickback" Act is a federal law that prohibits contractors and subcontractors involved in federal construction projects from persuading employees to give up any part of their earned wages. This act is designed to protect workers from unfair practices and ensures that they receive the full compensation stipulated in their employment agreements. Under this law, contractors must also submit weekly compliance statements to confirm adherence to these regulations.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A construction company working on a federal project asks its workers to return part of their paycheck as a condition for continued employment. This practice would violate the Copeland Act.

Example 2: A subcontractor fails to submit the required weekly compliance statement while working on a federal building. This oversight could lead to penalties or disqualification from future contracts.

Comparison with related terms

Term Definition Key Differences
Copeland Act Prohibits wage deductions by federal contractors. Specifically targets federal projects and contractor practices.
Davis-Bacon Act Requires payment of prevailing wages on federal contracts. Focuses on wage rates rather than deductions.
Fair Labor Standards Act (FLSA) Establishes minimum wage and overtime pay standards. Covers a broader range of employment practices beyond federal contracts.

What to do if this term applies to you

If you are a contractor or subcontractor involved in federal projects, ensure you understand the requirements of the Copeland Act. Regularly submit compliance statements and avoid any practices that could be construed as coercing employees to give up their wages. For assistance, consider using US Legal Forms' templates to help maintain compliance. If you face complex issues or legal challenges, consulting a legal professional is advisable.

Quick facts

  • Jurisdiction: Federal
  • Typical Penalties: Fines, disqualification from federal contracts
  • Compliance Requirement: Weekly statements
  • Employee Protection: Full compensation rights

Key takeaways

Frequently asked questions

It is a federal law that prohibits contractors from inducing employees to give up their earned wages.