(a) The Contract Work Hours and Safety Standards Act requires that
laborers or mechanics shall be paid wages at a rate not less than one
and one-half times the basic rate of pay for
all hours worked in excess of forty hours in any workweek. In the event
of violation of this provision, the contractor and any subcontractor
shall be liable for the unpaid wages and in addition for liquidated
damages, computed with respect to each laborer or mechanic employed in
violation of the Act in the amount of $10 for each calendar day in the
workweek on which such individual was required or permitted to work in
excess of forty hours without payment of required overtime wages. Any
contractor of subcontractor aggrieved by the withholding of liquidated
damages shall have the right to appeal to the head of the agency of the
United States (or the territory of District of Columbia, as appropriate)
for which the contract work was performed or for which financial
assistance was provided.
(b) Findings and recommendations of the Agency Head. The Agency Head
has the authority to review the administrative determination of
liquidated damages and to issue a final order affirming the
determination. It is not necessary to seek the concurrence of the
Administrator but the Administrator shall be advised of the action
taken. Whenever the Agency Head finds that a sum of liquidated damages
administratively determined to be due is incorrect or that the
contractor or subcontractor violated inadvertently the provisions of the
Act notwithstanding the exercise of due care upon the part of the
contractor or subcontractor involved, and the amount of the liquidated
damages computed for the contract is in excess of $500, the Agency Head
may make recommendations to the Secretary that an appropriate adjustment
in liquidated damages be made or that the contractor or subcontractor be
relieved of liability for such liquidated damages. Such findings with
respect to liquidated damages shall include findings with respect to any
wage underpayments for which the liquidated damages are determined.
(c) The recommendations of the Agency Head for adjustment or relief
from liquidated damages under paragraph (a) of this section shall be
reviewed by the Administrator or an authorized representative who shall
issue an order concurring in the recommendations, partially concurring
in the recommendations, or rejecting the recommendations, and the
reasons therefor. The order shall be the final decision of the
Department of Labor, unless a petition for review is filed pursuant to
part 7 of this title, and the Administrative Review Board in its
discretion reviews such decision and order; or, with respect to
contracts subject to the Service Contract Act, unless petition for
review is filed pursuant to part 8 of this title, and the Administrative
Review Board in its discretion reviews such decision and order.
(d) Whenever the Agency Head finds that a sum of liquidated damages
administratively determined to be due under section 104(a) of the
Contract Work Hours and Safety Standards Act for a contract is $500 or
less and the Agency Head finds that the sum of liquidated damages is
incorrect or that the contractor or subcontractor violated inadvertently
the provisions of the Contract Work Hours and Safety Standards Act
notwithstanding the exercise of due care upon the part of the contractor
or subcontractor involved, an appropriate adjustment may be made in such
liquidated damages or the contractor or subcontractor may be relieved of
liability for such liquidated damages without submitting recommendations
to this effect or a report to the Department of Labor. This delegation
of authority is made under section 105 of the Contract Work Hours and
Safety Standards Act and has been found to be necessary and proper in
the public interest to prevent undue hardship and to avoid serious
impairment of the conduct of Government business.
[48 FR 19541, Apr. 29, 1983, as amended at 51 FR 12265, Apr. 9, 1986; 51
FR 13496, Apr. 21, 1986]
