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Title 41 — Public ContractsRelease 119-73not60

§6705 Violations

Title 41 › Subtitle Subtitle II— Other Advertising and Contract Provisions › Chapter 67— SERVICE CONTRACT LABOR STANDARDS › § 6705

Last updated Apr 5, 2026|Official source

Summary

If a contractor breaks the pay rules in sections 6703(1) or (2) or 6704, the contractor must repay any money taken from, rebated, refunded, or underpaid to workers on that contract. The government can hold back payments it owes the contractor (even on other federal contracts) and put that money in a deposit fund. On the Secretary’s order, the fund will pay the underpaid worker. The agency may cancel the contract and hire others to finish the work, charging any extra cost to the original contractor. If withholding is not enough, the government can sue the contractor, subcontractor, or any guarantors to recover the rest. Recovered money goes into the deposit fund and will be paid to the worker when ordered. Any amount not paid to a worker within 3 years goes to the Treasury. The Secretary or a federal agency head enforces these rules under the regulations.

Full Legal Text

Title 41, §6705

Public Contracts — Source: USLM XML via OLRC

(a)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)(1)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)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)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)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.

Legislative History

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.

Reference

Citations & Metadata

Citation

41 U.S.C. § 6705

Title 41 — Public Contracts

Last Updated

Apr 5, 2026

Release point: 119-73not60