132
to work more than 40 hours in that workweek, except as provided in
this chapter; and
(2) when a violation of clause (1) occurs, the contractor and any sub-
contractor responsible for the violation are liable—
(A) to the affected employee for the employee’s unpaid wages;
and
(B) to the Government, the District of Columbia, or a territory
for liquidated damages as provided in the contract.
(c) LIQUIDATED
DAMAGES.—Liquidated damages under subsection
(b)(2)(B) shall be computed for each individual employed as a laborer or
mechanic in violation of this chapter and shall be equal to $10 for each cal-
endar day on which the individual was required or permitted to work in ex-
cess of the standard workweek without payment of the overtime wages re-
quired by this chapter.
(d) AMOUNTS WITHHELD TO SATISFY LIABILITIES.—Subject to section
3703 of this title, the governmental agency for which the contract work is
done or which is providing financial assistance for the work may withhold,
or have withheld, from money payable because of work performed by a con-
tractor or subcontractor, amounts administratively determined to be nec-
essary to satisfy the liabilities of the contractor or subcontractor for unpaid
wages and liquidated damages as provided in this section.
§ 3703. Report of violations and withholding of amounts for
unpaid wages and liquidated damages
(a) REPORTS OF INSPECTORS.—An officer or individual designated as an
inspector of the work to be performed under a contract described in section
3701 of this title, or to aid in the enforcement or fulfillment of the contract,
on observation or after investigation immediately shall report to the proper
officer of the Federal Government, a territory of the United States, or the
District of Columbia all violations of this chapter occurring in the perform-
ance of the work, together with the name of each laborer or mechanic who
was required or permitted to work in violation of this chapter and the day
the violation occurred.
(b) WITHHOLDING AMOUNTS.—
(1) DETERMINING AMOUNT.—The amount of unpaid wages and liq-
uidated damages owing under this chapter shall be determined adminis-
tratively.
(2) AMOUNT DIRECTED TO BE WITHHELD.—The officer or individual
whose duty it is to approve the payment of money by the Government,
territory, or District of Columbia in connection with the performance
of the contract work shall direct the amount of—
133
(A) liquidated damages to be withheld for the use and benefit
of the Government, territory, or District; and
(B) unpaid wages to be withheld for the use and benefit of the
laborers and mechanics who were not compensated as required
under this chapter.
(3) PAYMENT.—The Comptroller General shall pay the amount ad-
ministratively determined to be due directly to the laborers and me-
chanics from amounts withheld on account of underpayments of wages
if the amount withheld is adequate. If the amount withheld is not ade-
quate, the Comptroller General shall pay an equitable proportion of the
amount due.
(c) RIGHT OF ACTION AND INTERVENTION AGAINST CONTRACTORS AND
SURETIES.—If the accrued payments withheld under the terms of the con-
tract are insufficient to reimburse all the laborers and mechanics who have
not been paid the wages required under this chapter, the laborers and me-
chanics, in the case of a department or agency of the Government, have the
same right of action and intervention against the contractor and the con-
tractor’s sureties as is conferred by law on persons furnishing labor or ma-
terials. In those proceedings it is not a defense that the laborers and me-
chanics accepted or agreed to accept less than the required rate of wages
or voluntarily made refunds.
(d) REVIEW PROCESS.—
(1) TIME LIMIT FOR APPEAL.—Within 60 days after an amount is
withheld as liquidated damages, any contractor or subcontractor ag-
grieved by the withholding may appeal to the head of the agency of
the Government or territory for which the contract work is done or
which is providing financial assistance for the work, or to the Mayor
of the District of Columbia in the case of liquidated damages withheld
for the use and benefit of the District.
(2) REVIEW BY AGENCY HEAD OR MAYOR.—The agency head or
Mayor may review the administrative determination of liquidated dam-
ages. The agency head or Mayor may issue a final order affirming the
determination or may recommend to the Secretary of Labor that an ap-
propriate adjustment in liquidated damages be made, or that the con-
tractor or subcontractor be relieved of liability for the liquidated dam-
ages, if it is found that the amount is incorrect or that the contractor
or subcontractor violated this chapter inadvertently, notwithstanding
the exercise of due care by the contractor or subcontractor and the
agents of the contractor or subcontractor.
(3) REVIEW BY SECRETARY.—The Secretary shall review all perti-
nent facts in the matter and may conduct any investigation the Sec-
134
retary considers necessary in order to affirm or reject the recommenda-
tion. The decision of the Secretary is final.
(4) JUDICIAL ACTION.—A contractor or subcontractor aggrieved by
a final order for the withholding of liquidated damages may file a claim
in the United States Court of Federal Claims within 60 days after the
final order. A final order of the agency head, Mayor, or Secretary is
conclusive with respect to findings of fact if supported by substantial
evidence.
(e) APPLICABILITY OF OTHER LAWS.—
(1) REORGANIZATION PLAN.—Reorganization Plan Numbered 14 of
1950 (eff. May 24, 1950, 64 Stat. 1267) applies to this chapter.
(2) SECTION 3145.—Section 3145 of this title applies to contractors
and subcontractors referred to in section 3145 who are engaged in the
performance of contracts subject to this chapter.
§ 3704. Health and safety standards in building trades and
construction industry
(a) CONDITION OF CONTRACTS.—
(1) IN
GENERAL.—Each contract in an amount greater than
$100,000 that is entered into under legislation subject to Reorganiza-
tion Plan Numbered 14 of 1950 (eff. May 24, 1950, 64 Stat. 1267)
and is for construction, alteration, and repair, including painting and
decorating, must provide that no contractor or subcontractor con-
tracting for any part of the contract work shall require any laborer or
mechanic employed in the performance of the contract to work in sur-
roundings or under working conditions that are unsanitary, hazardous,
or dangerous to health or safety, as established under construction
safety and health standards the Secretary of Labor prescribes by regu-
lation based on proceedings pursuant to section 553 of title 5, provided
that the proceedings include a hearing similar in nature to that author-
ized by section 553.
(2) CONSULTATION.—In formulating standards under this section,
the Secretary shall consult with the Advisory Committee created by
subsection (d) of this section.
(b) COMPLIANCE.—
(1) ACTIONS TO GAIN COMPLIANCE.—The Secretary may make in-
spections, hold hearings, issue orders, and make decisions based on
findings of fact as the Secretary considers necessary to gain compliance
with this section and any health and safety standard the Secretary pre-
scribes under subsection (a). For those purposes the Secretary and the
United States district courts have the authority and jurisdiction pro-
vided by sections 4 and 5 of the Walsh-Healey Act (41 U.S.C. 38, 39).
135
(2) REMEDY WHEN NONCOMPLIANCE FOUND.—When the Secretary,
after an opportunity for an adjudicatory hearing by the Secretary, es-
tablishes noncompliance under this section of any condition of a con-
tract described in—
(A) section 3701(b)(1)(B)(i) or (ii) of this title, the govern-
mental agency for which the contract work is done may cancel the
contract and make other contracts for the completion of the con-
tract work, charging any additional cost to the original contractor;
or
(B) section 3701(b)(1)(B)(iii) of this title, the governmental
agency which is providing the financial guarantee, assistance, or
insurance for the contract work may withhold the guarantee, as-
sistance, or insurance attributable to the performance of the con-
tract.
(3) NONAPPLICABILITY.—Section 3703 of this title does not apply
to the enforcement of this section.
(c) REPEATED VIOLATIONS.—
(1) TRANSMITTAL
OF
NAMES
OF
REPEAT
VIOLATORS
TO
COMP-
TROLLER GENERAL.—When the Secretary, after an opportunity for an
agency hearing, decides on the record that, by repeated willful or gross-
ly negligent violations of this chapter, a contractor or subcontractor has
demonstrated that subsection (b) is not effective to protect the safety
and health of the employees of the contractor or subcontractor, the
Secretary shall make a finding to that effect and, not sooner than 30
days after giving notice of the finding to all interested persons, shall
transmit the name of the contractor or subcontractor to the Comp-
troller General.
(2) BAN ON AWARDING CONTRACTS.—The Comptroller General shall
distribute each name transmitted under paragraph (1) to all agencies
of the Federal Government. Unless the Secretary otherwise rec-
ommends, the contractor, subcontractor, or any person in which the
contractor or subcontractor has a substantial interest may not be
awarded a contract subject to this section until three years have
elapsed from the date the name is transmitted to the Comptroller Gen-
eral. The Secretary shall terminate the ban if, before the end of the
three-year period, the Secretary, after affording interested persons due
notice and an opportunity for a hearing, is satisfied that a contractor
or subcontractor whose name was transmitted to the Comptroller Gen-
eral will comply responsibly with the requirements of this section. The
Comptroller General shall inform all Government agencies after being
informed of the Secretary’s action.