U. S. DEPARTMENT OF LABOR
Office of the Assistant Secretary
Washington
February 8, 1954
To: All Federal Agencies
From: Harrison C. Hobart
Assistant Secretary of Labor
Subject: Notice to employees of wages withheld by Agencies from
contractors because of  labor standards violations.
Reference is made to Section 5.7 of Regulations, Part 5,
issued by the Department it Labor pursuant to Reorganization Plan
No. 14 of 1950 (29 CFR, subtitle A). -Section 5.7 of Regulations,
Part 5, states that the procedure to be followed in withholding
funds from contractors found to be in violation of the labor stand-
ards provisions of the :Davis-Bacon Act, as amended, shall be in
accordance with the Comptroller General’s letter of February 28,
1936, A. 36106, (appended to the Regulations).
It has been brought to my attention that Federal Agencies
in following the procedure outlined in the Comptroller General's
letter of February 28, 1936, do not uniformly notify the employees
involved that money has been withheld for their benefit and that
they should file a claim with the Comptroller General for the
amount due. As the matter now stands, the Comptroller General
assumes that the contracting agencies have notified the workers
to whom money is due of their obligation to file a claim with him.
The Comptroller General does not send out such notices.
As part of the withholding procedure required by Regula-
tions, Part 5, all Agencies primarily responsible for enforcement
of the labor standards provisions shall notify the affected em-
ployees as soon as possible of the withholding action taken. The
Agencies should, where possible, secure the claims from employees
and file with Comptroller General's Form 1093; otherwise the as
ployee should be informed that he should file his claim with the
Comptroller General. The claims of the employees may be in the
form of a letter to the Comptroller General (Claims Division),
Washington 25, D. C., setting forts the employees name, address,
classification, name of employer and a statement identifying the
project upon which he worked.
Agencies-whose contracts are not covered by the Davis-
Bacon Act but are subject to the withholding  procedures outlined
in Regulations, Part 5, should notify workers of amounts withheld,
and of the method to be followed by the workers in securing re-
imbursement.