Copeland "Anti-kickback" Act

[1] It prohibits a federal building contractor or subcontractor from inducing an employee into giving up any part of the compensation that he or she is entitled to under the terms of his or her employment contract.

[2] The Copeland Act also incorporated provisions of President Hoover's executive order no.

Copeland's Senate Subcommittee on Crime found that up to 25% of the federal money paid for labor under prevailing wage rates was actually returned by the wage-earner as a kickback to the employing contractor or subcontractor, or to government officials.

[1] The Act is one long sentence as follows: Whoever, by force, intimidation, or threat of procuring dismissal from employment, or by any other manner whatsoever induces any person employed in the construction, prosecution, completion or repair of any public building, public work, or building or work financed in whole or in part by loans or grants from the United States, to give up any part of the compensation to which he is entitled under his contract of employment, shall be fined under this title or imprisoned not more than five years, or both.The Copeland Act is administered by the U.S. Department of Labor.

[2][5] The Act originally provided for up to $5000 in fines and up to five years of imprisonment for violations.