U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

 INVESTIGATIVE PROCESS 

 UNDER 

 SCA/CWHSSA/FLSA
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

 INTRODUCTION TO THE INVESTIGATIVE PROCESS

 SCA LABOR STANDARDS/CONTRACT STIPULATIONS

 INVESTIGATION PROCEDURES

DETERMING COMPLIANCE WITH SCA/CWHSSA AND 

 RELATED FLSA REQUIREMENTS 

 REMEDIES AND SANCTIONS 

HEARING PROCESS AND APPEAL RIGHTS 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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INTRODUCTION TO THE INVESTIGATIVE PROCESS 

The WHD is responsible for administering and enforcing a number of federal laws that set 

basic labor standards, among them: 

◊ The Fair Labor Standards Act (FLSA) 

◊ The Family and Medical Leave Act (FMLA) 

◊ The Migrant and Seasonal Agricultural Worker Protection Act (MSPA) 

◊ The Employee Polygraph Protection Act 

◊ Certain employment standards and worker protections under the Immigration and 

Nationality Act 

◊ The Davis-Bacon and related Acts 

◊ The McNamara-O’Hara Service Contract Act 

The WHD may conduct investigations under any one or more of the laws it enforces. A 

WHD investigator(WHI) may conduct an investigation to determine whether these laws 

apply to an employer. A WHI may also visit an employer to provide information about the 

application of, and compliance with, the labor laws administered by the WHD. 

Most employers are subject to the FLSA, the federal law of most general application 

requiring payment of the minimum wage and overtime premium pay, keeping certain basic 

payroll and employment records, and limiting the working hours and types of jobs for certain 

underage youths. Section 11(a) of the FLSA authorizes representatives of DOL to 

investigate and gather data concerning wages, hours, and other employment practices; enter 

and inspect an employer’s premises and records; and question employees to determine 

whether any person has violated any FLSA provision(s). 

The WHD does not require an investigator to previously announce the scheduling of an 

investigation, although in many instances the investigator will advise an employer prior to 

opening the investigation. The WHI has sufficient latitude to initiate unannounced 

investigations in many cases in order to directly observe normal business operations and 

develop factual information quickly. 

The WHD conducts investigations for a number of reasons, all having to do with 

enforcement of the laws and ensuring an employer’s compliance. The WHD does not 

typically disclose the reason for an investigation. Many are initiated by complaints. All 

complaints are confidential; the name of the worker and the nature of the complaint 

are not disclosable; whether a complaint exists may not be disclosed. In addition to 

complaints, the WHD selects certain types of businesses or industries for investigation. 

Regardless of the particular reason that prompted the investigation, all investigations are 

conducted in accordance with established policies and procedures. 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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SCA LABOR STANDARDS/CONTRACT STIPULATIONS 

Section 2(a) of the SCA requires that stipulations (contract clauses) be included in all 

covered contracts in excess of $2,500. The stipulations are set forth at 29 C.F.R. § 4.6 and 

FAR 48 C.F.R. § 52.222-41. Among the contract clause requirements are: 

◊ Minimum wages to be paid the various classes of service employees. 

◊ Fringe benefits to be furnished to the service employees. 

◊ Safety and health provisions. 

◊ Furnishing employees notice of required compensation. 

◊ Statement of rates the federal agency would pay to the various classes of service 

employees if they were federal employees. 

 ◊◊ DOL must give due consideration to such rates in making wage and fringe 

benefit determinations. 

In addition to the SCA contract stipulations established in 29 C.F.R. § 4.6, contracts to which 

CWHSSA overtime requirements apply must also include the contract clause language set 

forth at 29 C.F.R. § 5.5(b) and FAR 48 C.F.R. § 52.222-4. 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

PREVAILING WAGE RESOURCE BOOK 2010 INVESTIGATIONS 

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INVESTIGATION PROCEDURES 

DOL has sole enforcement authority under the SCA (unlike the Davis-Bacon Act). The 

WHD applies the procedures described below in conducting investigations under the SCA, 

CWHSSA, FLSA, and other laws within its scope of enforcement responsibility. 

The WHI will identify himself/herself and present official credentials. The WHI will explain 

the investigation process and the types of records required during the review. 

Generally, a WHD investigation may consist of the following steps: 

◊ Examination of records to determine which laws or exemptions apply. These 

records include, for example, those showing the employer’s annual dollar volume 

of business transactions, involvement in interstate commerce, and work on 

government contracts. Information from an employer’s records will not be 

revealed to unauthorized persons. 

◊ Examination of payroll and time records, and taking notes or making transcriptions 

or photocopies essential to the investigation. 

◊ Interviews with certain employees in private. The purpose of these interviews is 

to verify the employer’s payroll and time records, to identify workers’ particular 

duties in sufficient detail to decide which exemptions apply, if any, and to 

confirm that minors are legally employed. Interviews are normally conducted on 

the employer’s premises. In some instances, present and former employees may 

be interviewed at their homes or by mail or telephone. 

In a full SCA investigation, the WHI will examine the following compliance issues: 

◊ Has the employer posted the “Notice to Employees Working on Government 

Contracts” (WH Publication 1313)? 

◊ Did the federal agency incorporate the correct wage determination(s) in the 

contract? 

◊ Did the employer post the wage determination or make it available to each 

employee? 

◊ Are service employees paid the applicable prevailing wage(s) rate for the 

class(es) of work performed? 

◊ Are service employees properly classified based on the work performed on a 

covered service contract? 

◊ Has the employer kept accurate records of employees’ hours of work, rate(s) of 

pay, payments made or costs incurred for fringe benefits, gross wages earned, and 

job classification(s)? 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

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◊ Did individual service employees perform work in more than one classification; 

if so, was the work segregated in the employer’s time and payroll records? 

◊ If fringe benefits were not paid in cash, did the employer incur the appropriate 

costs to provide fringe benefits? 

◊ Was overtime properly paid under either CWHSSA and/or FLSA? 

◊ Are service employee(s) covered by a WHD certificate(s) that allows for the 

payment of special minimum wages to workers with disabilities under Section 14 

of the FLSA? 

Initial Employer Conference

◊ The WHI will contact a responsible official of the firm at the start of the 

investigation. 

◊ Normally, the WHI will advise the official of the various steps that the 

investigation includes: the initial employer conference, contact with the federal 

contracting agency and prime contractor (if applicable), examination of the 

contract documents, examination of the basic payroll records, employee 

interviews, site inspection, and final conference. 

◊ The contractor will be asked to provide information, such as the firm’s legal 

name and responsible company officials, trade name(s) if any, address of the 

firm’s headquarters, and federal tax identification (FEIN) number. 

◊ Generally, the investigation covers a two-year period, but this period can be 

extended in certain instances. The contractor will be asked to make available 

basic time and payroll records for that period. (An FLSA investigation may be 

conducted concurrently with the SCA/CWHSSA investigation.) 

Review the Prime Contract

 The contracting agency and/or the contractor will be asked to identify: 

◊ The contracting agency/prime contractor, name and telephone number of the 

contracting officer, contract number, amount of contract, purpose of contract, 

date of contract award, period(s) of performance (start and ending dates, if 

known), place(s) of performance. 

◊ The WHI may request copies of the contract award letter, the labor standards 

clauses, wage determination(s) in the contract, conformance actions, contract 

modifications by which the federal contracting agency exercised options and/or 

extended the contract, and the e98 (if applicable) the federal contracting agency 

submitted to DOL to obtain SCA wage determination(s) for the contract. The 

WHI may review/duplicate portions of the scope of work from the contract. 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

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◊ The WHI will review the contract to determine: 

 ◊◊ Are required SCA contract stipulations in the contract? 

 ◊◊ Is the correct wage determination(s) in the contract? 

 ◊◊ Does the wage determination(s) apply to the geographic area(s) of contract 

performance? 

 ◊◊ Did the federal agency obtain and incorporate new wage determination(s) in 

the contract initially and/or at the execution of an option and/or extension of 

the contract term? 29 C.F.R. § 4.5(a)(2) and 29 C.F.R. § 4.6(b)(3). 

 ◊◊ Is a section 4(c) collective bargaining situation applicable to this contract? 

 ◊◊ Do employees considered to be outside the SCA definition of “service 

employees” because they are professional, administrative or executive 

employees meet the requirements for exemption under 29 C.F.R. Part 541? 

See SCA § 8 and 29 C.F.R. §§ 4.113 and 4.156. 

 ◊◊ Are all the classes of service employees who are employed on the contract 

listed in the contract wage determination and/or conformance actions 

approved by DOL? 29 C.F.R. §§ 4.6(b)(1)-(2). 

Subcontracts

◊ The WHI will review documents or information regarding labor standards and 

wage determinations that were provided by the prime contractor to the 

subcontractor. The subcontractor will be asked to provide a copy of the 

subcontract and any other relevant documents. 

◊ The SCA contract clauses included in the prime contract require the prime 

contractor to insert the SCA stipulations and applicable wage determinations in 

any subcontract subject to the SCA. 29 C.F.R. § 4.6(j). 

◊ The prime contractor is responsible for violations by subcontractors. 29 C.F.R. 

§ 4.114(b). 

◊ When a subcontractor is investigated, typically the WHI will notify the prime 

contractor at the beginning of the investigation. 

Contracts that do not contain the SCA contract clauses

◊ If an WHI finds that a service contract in excess of $2,500 does not contain SCA 

stipulations and/or the applicable wage determination(s), the investigation may be 

suspended until the contract is amended. 

◊ The WHI will try to determine why a wage determination was not included in the 

contract. 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

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◊ Where appropriate, the WHD will advise the contracting agency to insert SCA 

stipulations and/or the applicable wage determination into the contract, and 

subsequently proceed with the investigation. 29 C.F.R. § 4.5(c). 

Examination of Basic Payroll Records

◊ The WHI will examine the contractor’s payroll records. The recordkeeping 

requirements of the SCA are stated in the SCA contract clauses. The contractor 

is required to maintain records for each employee subject to the SCA and to make 

these records available for inspection and/or transcription on the request of an 

authorized WHD representative. These records must be maintained for three 

years from the completion of the work. 29 C.F.R. § 4.6(g). Also, the contractor 

may be required to maintain and provide the basic time and payroll records 

required under the FLSA. 29 C.F.R. § 516.2. 

Employee Interviews

◊ As stipulated in the SCA contract clauses, the contractor must permit authorized 

representatives of the WHD to conduct interviews with employees at the work 

site during normal working hours. 29 C.F.R. § 4.6(g)(4). 

◊ Employee interview statements are confidential and therefore must be conducted 

in an area that provides privacy. 

◊ The WHI may interview current and/or former employees. 

Review of Conformance Actions 29 C.F.R. § 4.6(b)(2).

◊ If the WHI finds that the contractor employs classes of workers not listed on the 

wage determination, the WHI will: 

 ◊◊ Determine whether conformance procedures were followed for the unlisted 

class(es). 

 ◊◊◊ If the contractor has not received a response to a request for approval 

of a conformance action, the WHI will determine whether a 

conformance action was initiated, completed, approved, denied and/or 

returned to the agency for transmittal to the contractor. 

 ◊◊◊ If the contractor and contracting agency have not taken appropriate 

action to submit a conformance request, the WHD can determine a 

conformed classification, wage rate, and or fringe benefits that will 

apply retroactively to the date each affected class of employees 

commenced work on the contract. 29 C.F.R. § 4.6(b)(2)(vi). 

◊ After the WHD conformance determination is made, the investigator can proceed 

to compute back wages due, if any, and complete the investigation. 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

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Determining Compliance with CWHSSA

◊ See the “Compliance Principles” section of this resource book for a detailed 

discussion of determining compliance with CWHSSA overtime pay 

requirements, where applicable. 

CWHSSA Liquidated Damages

◊ Liquidated damages are computed at $10.00 per day per CWHSSA violation. 

 40 U.S.C. § 3702(c); 29 C.F.R. § 5.5(b)(2); FAR 48 C.F.R. §§ 22.302and 52.222-

4(b). 

 ◊◊ As a matter of administrative policy, WHD does not compute liquidated 

damages for employees whose CWHSSA back wages are less than $20. 

 ◊◊ The contractor should be advised of the potential liquidated damages and 

the possibility of their assessment by the contracting agency. 

 The decision on whether to assess the damages is made by the federal contracting 

agency. (Liquidated damages in excess of $500 may be waived or adjusted only 

with the concurrence of Wage and Hour.) 

◊ Example: 

 M T W T F S S TOTALS 

 REGULAR TIME 10 12 13 9 8 3 0 55 

 In the above example, no overtime premium was paid. The 15 weekly overtime 

hours were worked on three calendar days, Thursday, Friday and Saturday. Thus, 

$30.00 in CWHSSA liquidated damages would be computed, and may be 

assessed. 

Overtime requirements under the FLSA, as amended

◊ For an overview of determining compliance with FLSA overtime pay 

requirements (where applicable). see the “Compliance Principles” section of this 

resource book. 

◊ Where questions arise concerning overtime pay obligations under the FLSA, 

consultation with the local WHD District Office is appropriate. 

State wage and hour laws

◊ Federal laws regarding minimum wages and overtime pay do not preempt the 

requirements of similar State and local laws. These laws set minimum 

requirements and can apply concurrently. Where questions arise regarding wage 

and overtime pay requirements under State (or local) law, consultation with the 

appropriate State (or local) government agency is appropriate. 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

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Final conference

◊ When all the fact-finding steps have been completed, the WHI will ask to meet 

with the contractor and/or a representative of the firm who has authority to reach 

decisions and commit the contractor to corrective actions if violations have 

occurred. The contractor will be told whether violations have occurred and, if so, 

what they are and how to correct them. If back wages are owed to employees, the 

WHI will request payment of back wages. 

◊ The contractor will have an opportunity to respond to the alleged violations 

and/or provide an explanation as to why the violations occurred. 

◊ Contractors may be represented by their accountants or attorneys at any point 

during this process. When the WHI has advised the employer of his/her findings, 

the employer or representative may present additional facts for consideration if 

violations were disclosed. 

◊ If a subcontractor fails to make restitution of the back wage liability found due, 

the WHI should advise the prime contractor of the findings and request payment 

of the back wages. SCA § 3(a) and 29 C.F.R. § 4.187(c) and 4.187(e)(1). 

 ◊◊ If a subcontractor owes back wages and refused to pay, the prime 

contractor, who bears the ultimate responsibility, shall be requested to make 

the payments. If the subcontractor is willing to make the payments but is 

unable to do so until payments due under the contract are made by the 

prime contractor, the matter shall be taken up with the prime contractor to 

arrange a satisfactory method under which the subcontractor can meet the 

back wage obligations. If the prime contractor does not agree to take steps 

to effect the payments, withholding action may be necessary to protect the 

employees’ interests. 

◊ In a refusal-to-pay situation, the WHI may advise a contractor that contract funds 

can be withheld. However, the WHI does not have the authority to initiate a 

withholding action. 

◊ Although the WHI should advise the contractor of any potential CWHSSA 

liquidated damages assessment, the initial decision to assess liquidated damages 

for CHWSSA violations will be made by the contracting agency. FAR 48 C.F.R. 

§ 22.302. 

◊ The WHI may advise the contractor of the debarment sanctions under the SCA 

(discussed below); and if it appears that the debarment criteria have been met, 

WHD will advise the contractor at the final conference of the possibility of 

debarment sanctions. 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

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REMEDIES AND SANCTIONS 

(29 C.F.R. §§ 4.187 – 4.191)

Withholding of Contract Funds to Cover Wages and Fringe Benefits Due

◊ To protect the rights of covered workers under the SCA and CWHSSA, DOL 

regulations provide for remedies when compliance is in question. An important 

element is the withholding of contract funds sufficient to satisfy alleged wage 

underpayments pending resolution of a wage dispute. Withholding action may be 

necessary to protect the employees’ interests. It assures the availability of monies 

for the payment of the back wages if a contractor refuses to make restitution 

when back wages are found due to covered workers. The contracting agency may 

withhold funds on its own initiative or at the direction of DOL. 

 ◊◊ The SCA contract clause set forth at 29 C.F.R.§ 4.6(i) and FAR 48 C.F.R. 

§ 52.222-41(k) directs the contracting officer to withhold or cause to be 

withheld, from the prime contractor, sums an appropriate DOL official 

requests or sums the contracting officer decides may be necessary to pay 

underpaid employees of the contractor or subcontractor(s). Such funds may 

be withheld from any federal contract with the prime contractor. (See also

29 C.F.R.§ 4.187.) The same contract clause also stipulates that in the 

event of failure to pay the employees wages or fringe benefits due under the 

SCA, the agency may also suspend further payments until the SCA 

violations have ceased; also, the agency may terminate the contractor’s 

right to proceed with work under the contract and charge the contractor in 

default for any additional cost needed to complete the contract work under 

other arrangements. 

 ◊◊ The comparable CWHSSA contract clause regarding the withholding of 

contract payments is at 29 C.F.R.§ 5.5(b)(3) and FAR 48 C.F.R. § 52.222-

4(c); see also FAR 48 C.F.R.§ :22.406-9(a). 

◊ There is no right of individual action (suit) to recover back wages under the SCA. 

◊ The contracting agency is responsible for withholding actions. 

 ◊◊ In the case of requirements-type contracts, it is the contracting agency and 

not the using agency that is responsible for withholding. 29 C.F.R. § 4.187. 

 ◊◊ Contracting officers shall withhold funds upon written request from DOL. 

Contracting officers should respond immediately confirming that the funds 

have been withheld. 

 ◊◊ Additionally, if the request has been made by DOL, it is important for the 

agency to preserve the withheld funds until notified in writing by DOL 

regarding final disposition of the withheld funds. 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

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◊ In most cases, the WHD provides written notice to contractors regarding 

withholding requests and provides the contractor(s) an opportunity to submit their 

views. (See discussion, below, regarding due process.) 

◊ As the prime contractor is responsible for compliance on the contract, and will be 

liable for payment of the back wages not paid by a subcontractor, the prime 

contractor may decide to withhold payments from the subcontractor until the 

back wage issues are resolved. 

Due Process for Withholding Action

◊ To ensure that contractors and subcontractors receive “due process” prior to the 

withholding of funds at the direction of the WHD, the following steps are 

included in the WHD enforcement procedures. 

 ◊◊ Where a contractor refuses to pay back wages under SCA and funds are 

available for withholding, WHD will generally send a “due process” letter 

to the prime contractor. This letter will include: 

 ◊◊◊ A statement that the final conference was conducted at which time the 

contractor was provided an opportunity to discuss alleged violations; 

or if a final conference was not held, provide the reason(s) why; 

 ◊◊◊ A brief description of the alleged violations; 

 ◊◊◊ An affirmation that the contractor received a Summary of Unpaid 

Wages; 

 ◊◊◊ A statement that the matter is being forwarded for a decision to a 

designated WHD deciding official, who will decide whether 

withholding action will be taken regarding the back wage findings; 

 ◊◊◊ A statement that the contractor has fifteen (15) days to provide the 

WHD deciding official with written views on whether the violations 

occurred; 

 ◊◊◊ A statement that any determination regarding the withholding of 

contract funds will not result in the distribution of the funds to the 

underpaid workers until such time as the administrative remedies 

available to the contractor have been completed. See discussion of 

“The Hearing Process And Appeal Rights,” below. 

 ◊◊ If the deciding official determines that withholding action is warranted, a 

copy of WHD withholding request to the contracting agency and a letter 

indicating the deciding official’s decision on withholding will be sent to the 

prime contractor. 

◊ In certain cases, such as missed payrolls, likely bankruptcy filings, or imminent 

contract close out, it may be necessary to request withholding before the 
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measures described above can be provided. In those cases, the procedures 

outlined above should be followed after the withholding action; and based on the 

contractor’s submission, the WHD deciding official may decide to revoke an 

earlier withholding request. 

Priority of withheld funds

◊ DOL's position is that accrued funds withheld for payment of wages may not be 

used or set aside for other purposes until such time as the prevailing wage issues 

are resolved. To give contracting agency reprocurement claims priority, for 

example, would essentially make the employees unfairly pay for the breach of 

contract between their employer and the Government. 

◊ It is DOL’s position that wages due underpaid employees have priority over any 

competing claims against a contractor, regardless of when the claims were raised. 

(See C.F.R.§ 4.187(b).) DOL believes that to hold otherwise would be 

inequitable and contrary to public policy since the affected employees have 

already performed work from which the Government has received the benefit. 

◊ Wage claims for underpayment have priority over: 

 (1) An Internal Revenue Service levy for unpaid taxes; 

 (2) Reprocurement costs of the contracting agency after a contractor's default or 

termination for cause; 

 (3) Any assignee of the contractor . . . including assignments made under the 

Assignment of Claims Act; 

 (4) Any claim by a trustee in bankruptcy. 

Disposition of withheld funds

◊ The disbursement process is handled by DOL. 

◊◊ When funds are forwarded to DOL for disbursement, so that the receiving DOL 

office can readily identify and make the appropriate disbursements to the affected 

employees, the agency should include the name of the contractor, and the 

contract number for which the work was performed (rather than the contract 

number for which the funds may have been withheld via a cross-withholding 

action) on the check or in a letter transmitting the check. All enclosed 

information is forwarded to the disbursing office by the bank. 

Contract cancellation

◊ Pursuant to the contract clause at 29 C.F.R.§ 4.6(i) and FAR 48 C.F.R. § 52.222-

41(k), the agency may cancel the contractor’s right to proceed with work under 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

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the contract and charge the contractor in default for any additional cost needed to 

complete the contract work under other arrangements. 

◊ A contract may be cancelled by the contracting agency if any violation(s) are 

found of any of the SCA contract stipulations, and additional costs of completing 

the contract work under another arrangement may be charged to the original 

contractor. 29 C.F.R.§ 4.190. 

Debarment SCA § 5; 29 C.F.R. § 4.188(b)(3). 

◊ After a hearing, any contractor or person responsible for SCA violations may be 

debarred from receiving government contracts or performing as a subcontractor 

for a period of three years, unless the responsible DOL official (Administrative 

Law Judge or, if appealed, the ARB) recommends relief from debarment because 

of “unusual circumstances.” 

◊ The term “unusual circumstances,” was added to the SCA by the 1972 

amendments, to SCA significantly restricted and removed prior discretionary 

authority regarding the initiation of debarment. 

◊ Although Congress did not define the term “unusual circumstances” in the SCA, 

Congress did indicate that the mere payment of back wages and the promise of 

future compliance are insufficient to preclude debarment. Criteria for 

determining “unusual circumstances” are stated at 29 CFR § 4.188(b)(2). 

 ◊◊ Relief from the debarment sanction cannot be in order where a respondent’s 

conduct in causing or permitting SCA violations provisions of the contract 

is willful, deliberate or of an aggravated nature or where the violations are a 

result of culpable conduct, as described in 29 C.F.R. § 4.188(b)(3)(i). 

 ◊◊ Furthermore, relief from debarment cannot be in order where a contractor 

has a history of similar violations, where a contractor has repeatedly 

violated the provisions of the Act, or where previous violations were 

serious in nature. A history of recurring violations of an identical nature 

prevents the finding of “unusual circumstances.” 
U.S. DEPARTMENT OF LABOR SCA/CWHSSA 

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THE HEARING PROCESS AND APPEAL RIGHTS 

(29 C.F.R. Part 6)

◊ In accordance with section 4(a) of SCA, DOL is authorized to hold hearings and 

make decisions based upon findings of fact as deemed necessary to enforce the 

provisions of SCA. 

◊ In situations where the contractor refuses to agree to future compliance, 

fails to make back wage restitution, or debarment action is indicated, 

investigation files are referred by WHD to the Regional Solicitor for 

preparation for an administrative hearing before a Department of Labor 

Administrative Law Judge (ALJ). 

◊ Employees do not have private rights of action under SCA to institute suits 

on their own behalf to collect unpaid wages. 

◊ After review and concurrence by the Regional Solicitor’s Office, a 

complaint is filed with the Office of the Chief Administrative Law Judge 

requesting that a hearing be held. The contractor is served a copy of this 

Complaint. 

◊ The Office of the Chief Administrative Law Judge is responsible for the 

scheduling of the administrative hearing. The hearing is normally held in 

the city closest to the location of the contractor. 

◊ During this period, the Regional Solicitor’s Office may continue to contact 

the firm, attempting to settle the matter without the need for a hearing; and 

funds will continue to be withheld from the contractor to cover the alleged 

back wage liability. 

◊ When the ALJ renders a decision regarding the issues in a case (such as the 

amount of the alleged back wage liability and/or debarment), any aggrieved party 

may petition the Administrative Review Board (ARB) within 40 days for review 

of the decision. 29 C.F.R. Part 8. 
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ADMINISTRATIVE REVIEW BOARD PROCEEDINGS 

(29 C.F.R. Part 8)

◊ The ARB, an appellate body within the DOL, created in 1996, has a maximum of 

five members appointed by Secretary of Labor. It succeeded certain former DOL 

appeals boards. ARB cases arise on appeal from ALJ decisions and final rulings 

by the WHD Administrator. The ARB issues final agency decisions for the 

Secretary of Labor in cases arising under a wide range of labor laws, including 

the Service Contract Act and the Davis-Bacon and related Acts. 

◊ Jurisdiction of the ARB under the SCA includes: 

 ◊◊ Wage determinations issued under the SCA; 

 ◊◊ Substantial variance proceedings or arm’s-length negotiations proceedings 

pursuant to section 4(c) of the SCA; 

 ◊◊ Debarment or other enforcement proceedings; 

 ◊◊ Proceedings to determine substantial interest of debarred persons or firms; 

 ◊◊ Decisions of the WHD Administrator or authorized representative regarding 

recommendations of a Federal agency for adjustment or waiver of 

liquidated damages assessed under CWHSSA; 

 ◊◊ Other final actions of the WHD Administrator or authorized representative, 

such as additional classification actions and rulings with respect to 

application of the Act(s), or the regulations, or of wage determinations 

issued thereunder; 

 ◊◊ Other matters specifically referred to the ARB by the Secretary of Labor. 

◊ The ARB may accept or not the accept review of any case. Requests for 

 review of: 

 ◊◊ Wage determinations must be filed with the ARB within 20 days of 

issuance of the WHD Administrator’s decision; 

 ◊◊ Coverage and interpretation matters must be filed within 60 days of 

issuance of the WHD Administrator’s decision; 

 ◊◊ Other proceedings must be filed within 60 days of the date of the decision 

in question. 

◊ Proceedings may be an oral hearing in Washington, D.C., or, typically, by review 

of the record in a closed session.