U.S. DEPARTMENT OF LABOR
OFFICE OF THE SOLICITOR
WASHINGTON 25
May 28, 1965
MEMORANDUM # 63
TO: AGENCIES ADMINISTERING STATUTES REFERRED TO IN 29
CFR, SUBTITLE A, PART 5.
FROM: E. Irving Manger
SUBJECT: Opinions on application of the Davis-Bacon and related
Acts.
Enclosed with previous covering memoranda, copies of
opinions on the application of the Davis-Bacon and related Acts
were furnished you for information and guidance in your enforce-
ment programs under those Acts.
We are now enclosing copies of recent opinions on this
same general subject, which we are sure will be of further interest
and assistance to you.
Enclosures: DB-43
DB-44





































U.S. DEPARTMENT OF LABOR
OFFICE OF THE SOLICITOR
WASHINGTON 25
Mr. T. L. Jones
Contract Labor Relations Adviser
Installation and Material Service
Federal Aviation Agency
Washington 25, D. C.
Dear Mr. Jones:
This is in reply to your recent letter in which you request an
opinion as to the meaning of the term "gross electrical labor
payroll@ where the contractor does not contribute to the applicable
fund.
Where the contractor has no plan or program requiring a payment
based upon percentage of gross payroll, he must make weekly cash
payments directly to his employees in lieu thereof. When this
occurs, agreement must be sought by the interested parties as to
an hourly cash equivalent of the fringe benefit payment which
would otherwise be required. In this situation, it will usually be
permissible for the contractor to apply the percentage to the basic
hourly rate of his laborers or mechanics in ascertaining the cash
equivalent of the weekly fringe benefits payments required.
In the event of disagreement of the interested parties, the matter
should be referred to us for decision under section 5.5(a)(1)(iii)
of our Regulations (29 CFR Part 5).
The precise meaning of the term will vary from one wage determination
to another. It usually reflects terminology in collective bargaining
agreements which reflect local prevailing wage patterns. The meaning
in a given circumstance would be that assigned by the bargaining parties.
Yours sincerely,
Charles Donahue
Solicitor of Labor
By
s/s E. Irving Manger
Associate Administrator






















U.S. DEPARTMENT OF LABOR
OFFICE OF THE SOICITOR
WASHINGTON 25
May 5, 1965
Mr. William R. Orlandi
Deputy General Counsel
Office of the Chief of Engineers
Department of the Army
Washington, D. C. 20315
Dear Mr. Orlandi:
This is in reply to your request for our comments on the assessment of
liquidated damages under the Contract Work Hours Standards Act in the
following examples:

“GRAPHIC” - Computation of Overtime

It seems to us that section 102(b)(2) of the act, dealing with the
assessment of liquidated damages, may not be read independently of wage
payment obligations created by the act. Consequently, when the act
requires that a contractor or subcontractor pay either weekly or daily
overtime, depending upon which is most beneficial to the employee
involved, liquidated damages may be assessed only to the extent that
the contractor has failed to meet his obligations. The act would not
seem to permit the use of a different alternative solely for the
assessment of liquidated damages.
It would appear significant that in enacting the Contract Work Hours
Standards Acts the Congress substituted the term “liquidated damages"
for the term "penalty" appearing in the Eight Hour Law of 1912. This
suggests that Congress was more concerned with compensating the
Government for the costs of investigation and enforcement than requiring
a maximum forfeiture by contractors and subcontractors. We turn now to
the examples which you have posed.

























DB-44
Mr. William R. Orlandi
Page 2
As in example one, where the daily overtime hours equal the weekly
overtime hours, liquidated damages should be assessed for the calendar
days upon which daily overtime is worked.
It is clear that in example two liquidated damages would be assessed
for the weekly overtime hours, because they exceed the daily overtime
hours. Weekly overtime hours were worked on three calendar days,
Thursday, Friday and Saturday.
Yours sincerely,
s/s Charles Donahue
Solicitor of Labor