Title 41 › Subtitle Subtitle II— - Other Advertising and Contract Provisions › Chapter CHAPTER 67— - SERVICE CONTRACT LABOR STANDARDS › § 6705
If someone breaks contract rules required under sections 6703(1) or (2) or under section 6704, they must give back any money taken from or not paid to workers who did the contract work. The government can hold back that owed amount from payments due on that contract or any other federal contract with the same contractor. The money is kept in a deposit fund, and the Secretary or an agency head can order it paid directly to the underpaid worker. If withheld funds do not cover what is owed, the government can sue the contractor, subcontractor, or any sureties to get the rest. Money recovered goes into the deposit fund and can be paid to the worker. Any amount that cannot be paid to a worker within 3 years goes to the Treasury as miscellaneous receipts. The agency that made the contract may cancel it in writing for a violation, hire others to finish the work, and charge any extra cost to the original contractor. The Secretary or agency head enforces these rules under regulations made under section 6707(a)–(d).
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Public Contracts — Source: USLM XML via OLRC
Legislative History
Reference
Citation
41 U.S.C. § 6705
Title 41 — Public Contracts
Last Updated
Apr 6, 2026
Release point: 119-73