PRIA, Government Policy, Made Personal

Summary

When a contractor breaks certain required wage rules (those in sections 6703(1) or (2) or section 6704), the responsible party must repay any money taken from workers or any pay they were shorted. The government can take the amount owed out of money it already owes the contractor, even on other federal contracts, and keep it in a deposit fund. The Secretary or the head of the agency can order that money paid directly to the underpaid worker. If the withheld money is not enough, the government can sue the contractor, subcontractor, or anyone who guaranteed the contractor to get the rest. Money recovered goes into the deposit fund and is paid to the worker on the Secretary’s order. Any money that cannot be paid to a worker within 3 years must be sent to the Treasury. The Secretary or agency head enforces these rules under regulations made under section 6707(a)–(d).

Title 41, §6705

Public Contracts, Source: USLM XML via OLRC

(a)Liability of Responsible Party.—

A party responsible for a violation of a contract provision required under section 6703(1) or (2) of this title or a violation of section 6704 of this title is liable for an amount equal to the sum of any deduction, rebate, refund, or underpayment of compensation due any employee engaged in the performance of the contract.

(b)Recovery of Amounts Underpaid to Employees.—

(1)Withholding accrued payments due on contracts.—

The total amount determined under subsection (a) to be due any employee engaged in the performance of a contract may be withheld from accrued payments due on the contract or on any other contract between the same contractor and the Federal Government. The amount withheld shall be held in a deposit fund. On order of the Secretary, the compensation found by the Secretary or the head of a Federal agency to be due an underpaid employee pursuant to this chapter shall be paid from the deposit fund directly to the underpaid employee.

(2)Bringing actions against contractors.—

If the accrued payments withheld under the terms of the contract are insufficient to reimburse a service employee with respect to whom there has been a failure to pay the compensation required pursuant to this chapter, the Federal Government may bring action against the contractor, subcontractor, or any sureties in any court of competent jurisdiction to recover the remaining amount of underpayment. Any amount recovered shall be held in the deposit fund and shall be paid, on order of the Secretary, directly to the underpaid employee. Any amount not paid to an employee because of inability to do so within 3 years shall be covered into the Treasury as miscellaneous receipts.

(c)Cancellation and Alternative Completion.—

In addition to other actions in accordance with this section, when a violation of any contract stipulation is found, the Federal agency that made the contract may cancel the contract on written notice to the original contractor. The Federal Government may then make other contracts or arrangements for the completion of the original contract, charging any additional cost to the original contractor.

(d)Enforcement of Section.—

In accordance with regulations prescribed pursuant to section 6707(a)–(d) of this title, the Secretary or the head of a Federal agency may carry out this section.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 6705(a)41:352(a) (1st sentence).Pub. L. 89–286, §§ 3, 5(b), Oct. 22, 1965, 79 Stat. 1035. 6705(b)(1)41:352(a) (2d–last sentences). 6705(b)(2)41:354(b) 6705(c)41:352(c). 6705(d)41:352(b). In subsection (c), the words “to other actions in accordance with this section” are added for clarity.

§6705 Violations

Summary

Title 41, §6705

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata