---
kind: "range"
citation: "41 U.S.C. §§ 6705–6707"
title: "41"
from: "6705"
to: "6707"
count: 3
release: "119-102"
url: "https://uscodex.org/usc/41/6705..6707"
---

# §6705. Violations

- (a) **Liability of Responsible Party.—** A party responsible for a violation of a contract provision required under section [6703(1)](/usc/41/6703.md?p=1) or [(2)](/usc/41/6703.md?p=2) of this title or a violation of [section 6704 of this title](/usc/41/6704.md) is liable for an amount equal to the sum of any deduction, rebate, refund, or underpayment of [compensation](/usc/41/6701.md?p=1) due any [employee](/usc/41/8101.md?p=a-6) 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)](#a) to be due any [employee](/usc/41/8101.md?p=a-6) 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](/usc/41/6701.md?p=2), the [compensation](/usc/41/6701.md?p=1) found by the [Secretary](/usc/41/6701.md?p=2) or the head of a [Federal agency](/usc/41/8301.md?p=3) to be due an underpaid [employee](/usc/41/8101.md?p=a-6) pursuant to this chapter shall be paid from the deposit fund directly to the underpaid [employee](/usc/41/8101.md?p=a-6).
  - (2) **Bringing actions against contractors.—** If the accrued payments withheld under the terms of the contract are insufficient to reimburse a [service employee](/usc/41/6701.md?p=3) with respect to whom there has been a failure to pay the [compensation](/usc/41/6701.md?p=1) 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](/usc/41/6701.md?p=2), directly to the underpaid [employee](/usc/41/8101.md?p=a-6). Any amount not paid to an [employee](/usc/41/8101.md?p=a-6) 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](/usc/41/8301.md?p=3) 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)](/usc/41/6707.md?p=a..d) of this title, the [Secretary](/usc/41/6701.md?p=2) or the head of a [Federal agency](/usc/41/8301.md?p=3) may carry out this section.

# §6706. Three-year prohibition on new contracts in case of violation

- (a) **Distribution of List.—** The Comptroller General shall distribute to each agency of the Federal Government a list containing the names of persons or firms that a [Federal agency](/usc/41/8301.md?p=3) or the [Secretary](/usc/41/6701.md?p=2) has found to have violated this chapter.
- (b) **Three-Year Prohibition.—** Unless the [Secretary](/usc/41/6701.md?p=2) recommends otherwise because of unusual circumstances, a Federal Government contract may not be awarded to a person or firm named on the list under [subsection (a)](#a), or to an entity in which the person or firm has a substantial interest, until 3 years have elapsed from the date of publication of the list. If the [Secretary](/usc/41/6701.md?p=2) does not recommend otherwise because of unusual circumstances, the [Secretary](/usc/41/6701.md?p=2) shall, not later than 90 days after a hearing examiner has made a finding of a violation of this chapter, forward to the Comptroller General the name of the person or firm found to have violated this chapter.

# §6707. Enforcement and administration of chapter

- (a) **Enforcement of Chapter.—** Sections [6506](/usc/41/6506.md) and [6507](/usc/41/6507.md) of this title govern the [Secretary](/usc/41/6701.md?p=2)’s authority to enforce this chapter, including the [Secretary](/usc/41/6701.md?p=2)’s authority to prescribe regulations, issue orders, hold hearings, make decisions based on findings of fact, and take other appropriate action under this chapter.
- (b) **Limitations and Regulations for Variations, Tolerances, and Exemptions.—** The [Secretary](/usc/41/6701.md?p=2) may provide reasonable limitations and may prescribe regulations allowing reasonable variation, tolerances, and exemptions with respect to this chapter (other than [subsection (f)](#f)), but only in special circumstances where the [Secretary](/usc/41/6701.md?p=2) determines that the limitation, variation, tolerance, or exemption is necessary and proper in the public interest or to avoid the serious impairment of Federal Government business, and is in accord with the remedial purpose of this chapter to protect prevailing labor standards.
- (c) **Preservation of Wages and Benefits Due Under Predecessor Contracts.—**
  - (1) **In general.—** Under a contract which succeeds a contract subject to this chapter, and under which substantially the same services are furnished, a contractor or subcontractor may not pay a [service employee](/usc/41/6701.md?p=3) less than the wages and fringe benefits the [service employee](/usc/41/6701.md?p=3) would have received under the predecessor contract, including accrued wages and fringe benefits and any prospective increases in wages and fringe benefits provided for in a collective-bargaining agreement as a result of arm’s-length negotiations.
  - (2) **Exception.—** This subsection does not apply if the [Secretary](/usc/41/6701.md?p=2) finds after a hearing in accordance with regulations adopted by the [Secretary](/usc/41/6701.md?p=2) that wages and fringe benefits under the predecessor contract are substantially at variance with wages and fringe benefits prevailing in the same [locality](/usc/41/6509.md?p=b) for services of a similar character.
- (d) **Duration of Contracts.—** Subject to limitations in annual appropriation acts but notwithstanding any other law, a contract to which this chapter applies may, if authorized by the [Secretary](/usc/41/6701.md?p=2), be for any term of years not exceeding 5, if the contract provides for periodic adjustment of wages and fringe benefits pursuant to future determinations, issued in the manner prescribed in [section 6703 of this title](/usc/41/6703.md) at least once every 2 years during the term of the contract, covering each class of [service employee](/usc/41/6701.md?p=3).
- (e) **Exclusion of Fringe Benefit Payments in Determining Overtime Pay.—** In determining any overtime pay to which a [service employee](/usc/41/6701.md?p=3) is entitled under Federal law, the regular or basic hourly rate of pay of the [service employee](/usc/41/6701.md?p=3) does not include any fringe benefit payments computed under this chapter which are excluded from the definition of “regular rate” under section 7(e) of the Fair Labor Standards Act of 1938 ([29 U.S.C. 207(e)](/usc/29/207.md?p=e)).
- (f) **Timeliness of Wage and Fringe Benefit Determinations.—** It is the intent of Congress that determinations of minimum wages and fringe benefits under section [6703(1)](/usc/41/6703.md?p=1) and [(2)](/usc/41/6703.md?p=2) of this title should be made as soon as administratively feasible for all contracts subject to this chapter. In any event, the [Secretary](/usc/41/6701.md?p=2) shall at least make the determinations for contracts under which more than 5 [service employees](/usc/41/6701.md?p=3) are to be employed.