FAR 22.403-2—Copeland Act.
Plain-English Summary
FAR 22.403-2 explains the Copeland (Anti-Kickback) Act and how it applies to federal construction and repair work. This section covers two core subjects: first, the Act’s prohibition on coercing or inducing employees on federally financed public buildings or public works to surrender any part of their earned compensation; and second, the weekly statement-of-compliance requirement for contractors and subcontractors regarding wages paid. It also explains the contracting requirement that covered contracts include the mandatory clause at FAR 52.222-10, which binds contractors and subcontractors to the Department of Labor’s Copeland Act regulations. In practice, this section is about protecting workers from wage kickbacks and ensuring payroll transparency on covered construction projects. For contracting officers, it is a clause-and-compliance trigger; for contractors and subcontractors, it is a payroll administration and labor-compliance obligation that must be built into weekly reporting and subcontract management.
Key Rules
No wage kickbacks
It is unlawful to induce any employee on covered construction or repair work to give up any part of the compensation they are entitled to under their employment contract. The prohibition includes force, intimidation, threats of dismissal, or any other coercive method.
Applies to covered construction
The rule applies to the construction or repair of public buildings or public works financed in whole or in part by the United States. If the work falls within that scope, the Copeland Act requirements are triggered.
Weekly compliance statements
Each contractor and subcontractor must furnish a weekly statement of compliance showing the wages paid to each employee during the preceding week. This is a recurring reporting duty, not a one-time certification.
Mandatory contract clause
Contracts subject to the Copeland Act must include the clause at FAR 52.222-10. That clause requires contractors and subcontractors to comply with the Secretary of Labor’s regulations implementing the Act.
Subcontractor flowdown
Because the clause applies to both contractors and subcontractors, prime contractors must ensure the requirement is passed down and administered throughout the subcontracting chain on covered work.
Responsibilities
Contracting Officer
Determine whether the contract is subject to the Copeland Act and include the required clause at FAR 52.222-10 in covered contracts. Ensure the solicitation and contract reflect the labor-compliance obligations that apply to the work.
Contractor
Comply with the Copeland Act and the Department of Labor regulations, avoid any kickback or coercive wage practices, and furnish weekly statements of compliance for wages paid to employees during the preceding week. Ensure subcontractors are aware of and follow the same requirements.
Subcontractor
Follow the Copeland Act requirements on covered work, refrain from any prohibited wage inducement or coercion, and provide weekly statements of compliance for wages paid to its employees.
Agency
Support proper administration of labor standards requirements on covered construction and repair contracts, including oversight of clause use and compliance monitoring as appropriate.
Practical Implications
This section is a labor-compliance checkpoint on construction and repair contracts, not just a clause insertion exercise. If the work is covered, the weekly compliance statement requirement must be built into payroll processes from the start.
A common pitfall is overlooking subcontractors. The Copeland Act obligations apply down the chain, so prime contractors need controls to collect and review subcontractor compliance statements.
Another risk is treating the rule as only an anti-bribery provision. It also prohibits coercive wage deductions or any pressure that causes employees to surrender earned compensation.
Contracting officers should verify coverage early, because if the contract is for construction or repair of public buildings or public works financed in whole or in part by the United States, the clause is mandatory.
Contractors should maintain clear payroll records and compliance certifications each week, since missing or inaccurate statements can create labor standards violations and contract administration problems.
Official Regulatory Text
The Copeland (Anti-Kickback) Act ( 18 U.S.C.874 and 40 U.S.C. 3145 ) makes it unlawful to induce, by force, intimidation, threat of procuring dismissal from employment, or otherwise, any person employed in the construction or repair of public buildings or public works, financed in whole or in part by the United States, to give up any part of the compensation to which that person is entitled under a contract of employment. The Copeland Act also requires each contractor and subcontractor to furnish weekly a statement of compliance with respect to the wages paid each employee during the preceding week. Contracts subject to the Copeland Act shall contain a clause (see 52.222-10 ) requiring contractors and subcontractors to comply with the regulations issued by the Secretary of Labor under the Copeland Act.