of title 5, United States Code, were applicable to them. The Secretary shall give due consideration to such rates in making the wage and fringe benefit determinations specified in this section. (b) (1) No contractor who enters into any contract with the Federal Government the principal purpose of which is to furnish services through the use of service employees as defined herein and no subcontractor thereunder shall pay any of his employees engaged in performing work on such contracts less than the minimum wage specified under section 6(a) (1) of the Fair Labor Standards Act of 1938, as amended (52 Stat. 1060; 29 U.S.C. 201, et seq.).

(2) The provisions of sections 3, 4, and 5 of this Act shall be applicable to violations of this subsection.

SEC. 3. (a) Any violation of any of the contract stipulations required by section 2(a) (1) or (2) or of section 2(b) of this Act shall render the party responsible therefor liable for a sum equal to the amount of any deductions, rebates, refunds, or underpayment of compensation due to any employee engaged in the performance of such contract. So much of the accrued payment due on the contract or any other contracts or arrangements for the completion of the original ment may be withheld as is necessary to pay such employees. Such withheld sums shall be held in a deposit fund. On order of the Secretary, any compensation which the head of the Federal agency or the Secretary has found to be due pursuant to this Act shall be paid directly to the underpaid employees from any accrued payments withheld under this Act.

(b) In accordance with regulations prescribed pursuant to section 4 of this Act, the Federal agency head or the Secretary is hereby authorized to carry out the provisions of this section.

(c) In addition, when a violation is found of any contract stipulation, the contract is subject upon written notice to cancellation by the contracting agency. Whereupon, the United States may enter into other contracts or arrangements for the completion of the original contract, charging any additional cost to the original contractor.

SEC. 4. (a) Sections 4 and 5 of the Act of June 30, 1936 (49 Stat. 2036), as amended, shall govern the Secretary's authority to enforce this Act, make rules, regulations, issue orders, hold hearings, and make decisions based upon findings of fact, and take other appropriate action hereunder.

(b) The Secretary may provide such reasonable limitations and may make such rules and regulations allowing reasonable variations, tolerances, and exemptions to and from any or all provisions of this Act (other than section 10), but only in special circumstances where he determines that such limitation, variation, tolerance, or exemption is necessary and proper in the public interest or to avoid the serious impairment of government business, and is in accord with the remedial purpose of this Act to protect prevailing labor standards.

(c) No contractor or subcontractor under a contract, which succeeds a contract subject to this Act and under which substantially the same services are furnished, shall pay any service employee under such contract less than the wages and fringe benefits, including accrued wages and fringe benefits, and any prospective increases in wages and fringe benefits provided for in a collective-bargaining agreement as a result of arm's-length negotiations, to which such service employees would have been entitled if they were employed under the

predecessor contract: Provided, That if in any of the foregoing circumstances such obligations shall not apply if the Secretary finds after a hearing in accordance with regulations adopted by the Secretary that such wages and fringe benefits are substantially at variance with those which prevail for services of a character similar in the locality.

(d) Subject to limitations in annual appropriation Acts but notwithstanding any other provision of law, contracts to which this Act applies may, if authorized by the Secretary, be for any term of years not exceeding five, if each such contract provides for the periodic adjustment of wages and fringe benefits pursuant to future determinations, issued in the manner prescribed in section 2 of this Act no less often than once every two years during the term of the contract, covering the various classes of service employees.

SEC. 5 (a) The Comptroller General is directed to distribute a list to all agencies of the Government giving the names of persons or firms that the Federal agencies or the Secretary have found to have violated this Act. Unless the Secretary otherwise recommends because of unusual circumstances, no contract of the United States shall be awarded to the persons or firms appearing on this list or to any firm, corporation, partnership, or association in which such persons or firms have a substantial interest until three years have elapsed from the date of publication of the list containing the name of such persons or firms. Where the Secretary does not otherwise recommend because of unusual circumstances, he shall, not later than ninety days after a hearing examiner has made a finding of a violation of this Act, forward to the Comptroller General the name of the individual or firm found to have violated the provisions of this Act.

(b) If the accrued payments withheld under the terms of the contract are insufficient to reimburse all service employees with respect to whom there has been a failure to pay the compensation required pursuant to this Act, the United States may bring action against the contractor, subcontractor, or any sureties in any court of competent jurisdiction to recover the remaining amount of underpayments. Any sums thus recovered by the United States shall be held in the deposit fund and shall be paid, on order of the Secretary, directly to the underpaid employee or employees. Any sum not paid to an employee because of inability to do so within three years shall be covered into the Treasury of the United States as miscellaneous receipts.

SEC. 6. In determining any overtime pay to which such service employees are entitled under any Federal law, the regular or basic hourly rate of pay of such an employee shall not include any fringe benefit payments computed hereunder which are excluded from the regular rate under the Fair Labor Standards Act by provisions of section 7 (d) thereof.

SEC. 7. This Act shall not apply to

(1) any contract of the United States or District of Columbia for construction, alteration and/or repair, including painting and decorating of public buildings or public works;

(2) any work required to be done in accordance with the provisions of the Walsh-Healey Public Contracts Act (49 Stat. 2036); (3) any contract for the carriage of freight or personnel by vessel, airplane, bus, truck, express, railway line or oil or gas pipeline where published tariff rates are in effect;

(4) any contract for the furnishing of services by radio, telephone, telegraph, or cable companies, subject to the Communications Act of 1934;

(5) any contract for public utility services, including electric light and power, water, steam, and gas;

(6) any employment contract providing for direct services to a Federal agency by an individual or individuals; and

(7) any contract with the Post Office Department, the principal purpose of which is the operation of postal contract stations. SEC. 8. For the purposes of this Act—

(a) "Secretary" means Secretary of Labor.

(b) The term "service employee" means guards, watchmen, and any person engaged in a recognized trade or craft, or other skilled mechanical craft, or in unskilled, semiskilled, or skilled manual labor occupations; and any other employee including a foreman or supervisor in a position having trade, craft, or laboring experience as the paramount requirement; and shall include all such persons regardless of any contractual relationship that may be alleged to exist between a contractor or subcontractor and such persons.

(c) The term "compensation" means any of the payments or fringe benefits described in section 2 of this Act.

(d) The term "United States" when used in a geographical sense shall include any State of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, Outer Continental Shelf lands as defined in the Outer Continental Shelf Lands Act, American Samoa, Guam, Wake Island, Eniwetok Atoll, Kwajalein Atoll, Johnston Island, and Canton Island, but shall not include any other territory under the jurisdiction of the United States or any United States base or possession within a foreign country.

SEC. 9. This Act shall apply to all contracts entered into pursuant to negotiations concluded or invitations for bids issued on or after ninety days from the date of enactment of this Act.

Sec. 10. It is the intent of the Congress that determinations of minimum monetary wages and fringe benefits for the various classes of service employees under the provisions of paragraphs (1) and (2) of section 2 should be made with respect to all contracts subject to this Act, as soon as it is administratively feasible to do so. In any event, the Secretary shall make such determinations with respect to at least the following contracts subject to this Act which are entered into during the applicable fiscal year:

(1) For the fiscal year ending June 30, 1973, all contracts under which more than twenty-five service employees are to be employed. (2) For the fiscal year ending June 30, 1974, all contracts under which more than twenty service employees are to be employed.

(3) For the fiscal year ending June 30, 1975, all contracts under which more than fifteen service employees are to be employed.

(4) For the fiscal year ending June 30, 1976, all contracts under which more than ten service employees are to be employed.

(5) For the fiscal year ending June 30, 1977, and for each fiscal year thereafter, all contracts under which more than five service employees are to be employed.

Approved October 22, 1965 (Public Law 89-286).

Approved October 9, 1972 (Amendments, Public Law 92-473).

* Canton Island added by Public Law 93-57, July 6, 1973, 87 Stat. 140.

CIVIL RIGHTS ACT OF 1964

Public Law 88-352, 1964, as amended, 42 U.S.C. 2000 et seq.

Summary and Description

TITLE VI

Title VI of the Civil Rights Act stipulates: "No person in the United States shall, on ground of race, color, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance."

In essence, Title VI forbids discrimination on the basis of race, color, or national origin in any Federal or federally funded program. Each Federal agency sets up its own procedures and regulations to govern the implementation of these nondiscriminatory provisions. Title 29, Part 31 of the Labor Department Rules and Regulations sets up the provisions for the Department's enforcement of Title VI. The Office of Equal Opportunity oversees the efforts of the Department in the enforcement of these regulations. The Regional Offices of the Department under the jurisdiction of the Regional Manpower Administrators handle the day by day complaint investigation and compliance review evaluatory functions.

Title VI provides that voluntary efforts to achieve compliance should always precede mandatory legal steps.

Before an order suspending, terminating, or refusing to grant Federal financial assistance shall become effective, the following steps

must have been taken:

1. The agency must advise the applicant or recipient of the failure to comply and of the agency's determination that compliance cannot be secured by voluntary means.

2. There must be an express finding on the record of a failure to comply after an opportunity for hearing.

3. There must be approval of the action terminating or suspending the Federal assistance by the head of the agency.

In any action ordering a suspension, termination, or refusal to grant Federal financial assistance, the head of the agency must file a full written report of the circumstances and grounds for such action with the Congressional committees that have jurisdiction over the program involved. Thirty days must have expired after the filing of the report before the action becomes effective.

TITLE VII

Title VII of the Civil Rights Act of 1964, "Equal Employment Opportunity," prohibits discrimination based on race, color, religion, sex,

and national origin in all terms, conditions, and privileges of employment by employers, employment agencies, and labor unions.

Title VII established the Equal Employment Opportunity Commission (EEOC) to administer the Act. The Commission is composed of five members, serving five-year terms, who are appointed by the President, with the advice and consent of the Senate. The President designates one of the five Commissioners as Chairman, and another as Vice Chairman.

Among the principal operating units within the Commission are the following offices:

Compliance, which includes the Conciliation Division

The EEOC administers the Act through its headquarters office in Washington, D.C., and 13 regional offices located in major cities throughout the country. Each of the Commission's regional offices has an attorney who is available to assist private attorneys engaged in Title VII litigation.

Aggrieved persons

FILING OF CHARGES

If a person believes that he or she is the victim of discrimination by an employer, employment agency, or labor union, that person may file a written charge or complaint at the Commission's Washington, D.C. headquarters or at any one of the regional offices located in major cities throughout the country.

A charge of employment discrimination may be filed by any person aggrieved by the conduct involved or by one of the EEOC's five Commissioners. A labor union which represents the bargaining unit involved has standing as an aggrieved person to file a charge of employment discrimination against the employer of that unit.

Instructions and charge forms are available at the Equal Employment Opportunity Commission, 1800 G Street, NW., Washington, D.C. 20506, and at regional offices. While the use of the EEOC charge form is recommended, it is not required. A charging party may file his complaint in the form of a letter or written statement, which identifies the parties and describes generally the alleged unlawful conduct or practices.

The Act has certain requirements with regard to timeliness. Accordingly, it is essential that aggrieved persons file their charges within 90 days after the alleged unlawful employment practice occurred.

In those States that have a State fair employment practices commission with authority to provide relief in cases of employment discrimination, the aggrieved person must file a charge of discrimination with the State agency prior to filing a charge with the EEOC. In such a case the Federal charge should be filed with the EEOC within two hundred and ten days after the alleged unlawful employment practice occurred, or within thirty days after receiving notice that the State agency has terminated the proceedings, whichever is earlier.