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- FirstStep Employment Law Advisor



Construction Contract

Generally, any contract for the construction, rehabilitation, alteration, conversion, extension, demolition or repair of buildings or highways, or other changes or improvements to real property, including facilities providing utility services to which the United States or the District of Columbia is a party.

A construction contract may also be any contracts for the construction, alteration, or repair of public buildings or public works to which the United States or the District of Columbia is a party.

Direct or Indirect Party

A "direct or indirect party" to an agreement or arrangement includes:

  1. persons who have secured the services of another or of others in connection with an agreement or arrangement of the type referred to in Section 203(b) of the LMRDA, and
  2. persons who have undertaken activities at the behest of another or of others with knowledge or reason to believe that they are undertaken as a result of an agreement or arrangement between an employer and any other person. However, bona fide regular officers, supervisors, or employees of an employer are exempt from this reporting requirement to the extent that the services they undertook to perform were undertaken as such bona fide regular officers, supervisors, or employees of their employer.

Disability Certified by DOL

Section 14(c) of the Fair Labor Standards Act  authorizes employers, after receiving a certificate from the U.S. Department of Labor's Wage and Hour Division, to pay special minimum wages—wages less than the Federal minimum wage—to workers who have disabilities for the work being performed. The certificate also allows the payment of wages that are less than the prevailing wage to workers who have disabilities for the work being performed on contracts subject to the McNamara-O'Hara Service Contract Act and the Walsh-Healey Public Contracts Act.

A worker who has a disability for the job being performed is one whose earning or productive capacity is impaired by a physical or mental disability, including those relating to age or injury. Disabilities that may affect productive capacity include blindness, mental illness, mental retardation, cerebral palsy, alcoholism, and drug addiction. See the Section 14(c) elaws Advisor for additional information.


An establishment is a farm, a factory, a store, a mine, a construction worksite, etc. that produces goods or services. It is typically at a single physical location and engaged in one, or predominately one, type of activity.

An establishment may also be a store, office or other physical entity that sells or produces goods or services that is physically distinct from any other facility operated by a business. For example, where a business operates a local chain of convenience stores, each store would be viewed as an establishment, even though they are jointly operated.

You must run the FirstStep Employment Law Advisor for each establishment in your business or organization to determine which laws apply to that establishment.

Federally assisted Construction Contract

Generally means any construction contract insured by the Federal government or paid for through Federal grants, or loans with loan guarantees by the Federal government.

Labor Relations Consultant

The term "Labor relations consultant" means any person who, for compensation, advises or represents an employer, employer organization, or labor organization concerning employee organizing, concerted activities, or collective bargaining activities.

Services Contract

Any contract for the furnishing of services to the United States or the District of Columbia or for the use of real or personal property including lease arrangements, which, in whole or in part, is necessary to the performance of any one or more government contracts. A service contract includes, but is not limited to the following: utility, transportation, research, insurance, information technology, and fund depository.

A services contract may also be any contract for the furnishing of services to the United States or the District of Columbia. Such contracts often include security and guard services, janitorial services, cafeteria and food services, and support services at Government installations.

Supply and Equipment Contract

Any contract for the furnishing of material, supplies, articles or equipment.

Total Annual Amount of Receipts

The term "total annual receipts" means all financial receipts of the labor organization during its fiscal year, regardless of the source, including receipts of any subsidiaries and any special funds.


Trusteeship means any receivership, trusteeship, or other method of supervision or control whereby a labor organization suspends the autonomy otherwise available to a subordinate body under its constitution or bylaws.

Union Covered by LMRDA

The LMRDA applies to labor organizations which represent private sector employees and U.S. Postal Service employees.

Please note that the definitions have been adopted from various programs and may differ from the controlling statutory or regulatory definitions. Similar terms may have different meanings when used in a particular statute or regulation.

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