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41 U.S.C. § 6503 — Breach or violation of required contract terms
Federal law — U.S. Code and appendices · legal_authorities
**(a) Applicable Breach or Violation.—** This section applies in case of breach or violation of a representation or stipulation included in a contract under [section 6502 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section6502&num=0&edition=prelim).
**(b) Liquidated Damages.—** In addition to damages for any other breach of the contract, the party responsible for a breach or violation described in subsection (a) is liable to the Federal Government for the following liquidated damages:
(1) An amount equal to the sum of $10 per day for each individual under 16 years of age and each incarcerated individual knowingly employed in the performance of the contract.
(2) An amount equal to the sum of each underpayment of wages due an employee engaged in the performance of the contract, including any underpayments arising from deductions, rebates, or refunds.
**(c) Cancellation and Alternative Completion.—** In addition to the Federal Government being entitled to damages described in subsection (b), the agency of the United States that made the contract may cancel the contract and make open-market purchases or make other contracts for the completion of the original contract, charging any additional cost to the original contractor.
**(d) Recovery of Amounts Due.—** An amount due the Federal Government because of a breach or violation described in subsection (a) may be withheld from any amounts owed the contractor under any contract under [section 6502 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section6502&num=0&edition=prelim) or may be recovered in a suit brought by the Attorney General.
**(e) Employee Reimbursement for Underpayment of Wages.—** An amount withheld or recovered under subsection (
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Stable record: federal_law:legal_authorities:record_usc_0e9527b658d3822cc146c667
Source file: Laws/federal/codes/united-states-code/title-41/section-6503-breach-or-violation-of-required-contract-terms--5acfe6a2cc.md
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Source location: Title 41, Chapter 65, § 6503; chapter-065-contracts-for-materials-supplies-articles-and-equipment-exceeding-10-000.md
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**(a) Applicable Breach or Violation.—** This section applies in case of breach or violation of a representation or stipulation included in a contract under [section 6502 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section6502&num=0&edition=prelim).
**(b) Liquidated Damages.—** In addition to damages for any other breach of the contract, the party responsible for a breach or violation described in subsection (a) is liable to the Federal Government for the following liquidated damages:
(1) An amount equal to the sum of $10 per day for each individual under 16 years of age and each incarcerated individual knowingly employed in the performance of the contract.
(2) An amount equal to the sum of each underpayment of wages due an employee engaged in the performance of the contract, including any underpayments arising from deductions, rebates, or refunds.
**(c) Cancellation and Alternative Completion.—** In addition to the Federal Government being entitled to damages described in subsection (b), the agency of the United States that made the contract may cancel the contract and make open-market purchases or make other contracts for the completion of the original contract, charging any additional cost to the original contractor.
**(d) Recovery of Amounts Due.—** An amount due the Federal Government because of a breach or violation described in subsection (a) may be withheld from any amounts owed the contractor under any contract under [section 6502 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section6502&num=0&edition=prelim) or may be recovered in a suit brought by the Attorney General.
**(e) Employee Reimbursement for Underpayment of Wages.—** An amount withheld or recovered under subsection (d) that is based on an underpayment of wages as described in subsection (b)(2) shall be held in a special deposit account. On order of the Secretary, the amount shall be paid directly to the underpaid employee on whose account the amount was withheld or recovered. However, an employee’s claim for payment under this subsection may be entertained only if made within one year from the date of actual notice to the contractor of the withholding or recovery.
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Federal law — U.S. Code and appendices · legal_authorities
A contract made by an agency of the United States for the manufacture or furnishing of materials, supplies, articles, or equipment, in an amount exceeding $10,000, shall include the following representations and stipulations:
(1) **Minimum wages to be paid.—** — All individuals employed by the contractor in the manufacture or furnishing of materials, supplies, articles, or equipment under the contract will be paid, without subsequent deduction or rebate on any account, not less than the prevailing minimum wages, as determined by the Secretary, for individuals employed in similar work or in the particular or similar industries or groups of industries currently operating in the locality in which the materials, supplies, articles, or equipment are to be manufactured or furnished under the contract, except that this paragraph applies only to purchases or contracts relating to industries that have been the subject matter of a determination by the Secretary.
(2) **Maximum number of hours to be worked in a week.—** — No individual employed by the contractor in the manufacture or furnishing of materials, supplies, articles, or equipment under the contract shall be permitted to work in excess of 40 hours in any one week, except that this paragraph does not apply to an employer who has entered into an agreement with employees pursuant to paragraph (1) or (2) of section 7(b) of the Fair Labor Standards Act of 1938 ([29 U.S.C. 207(b)(1)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title29-section207/b/1&num=0&edition=prelim) or (2)).
(3) **Ineligible employees.—** — No individual under 16 years of age and no incarcerated individual will be employed by the contractor in the manufacture or furnishing of materials, supplies, articles, or equipment under the contrac
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Federal law — U.S. Code and appendices · legal_authorities
Page 167
TITLE 41—PUBLIC CONTRACTS
§ 6503
terials, supplies, articles, or equipment, in an
amount exceeding $10,000, shall include the fol-
lowing representations and stipulations:
(1) MINIMUM WAGES TO BE PAID.—All individ-
uals employed by the contractor in the manu-
facture or furnishing of materials, supplies,
articles, or equipment under the contract will
be paid, without subsequent deduction or re-
bate on any account, not less than the pre-
vailing minimum wages, as determined by the
Secretary, for individuals employed in similar
work or in the particular or similar industries
or groups of industries currently operating in
the locality in which the materials, supplies,
articles, or equipment are to be manufactured
or furnished under the contract, except that
this paragraph applies only to purchases or
contracts relating to industries that have been
the subject matter of a determination by the
Secretary.
(2) MAXIMUM NUMBER OF HOURS TO BE WORKED
IN
A
WEEK.—No individual employed by the
contractor in the manufacture or furnishing of
materials, supplies, articles, or equipment
under the contract shall be permitted to work
in excess of 40 hours in any one week, except
that this paragraph does not apply to an em-
ployer who has entered into an agreement
with employees pursuant to paragraph (1) or
(2) of section 7(b) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 207(b)(1) or (2)).
(3) INELIGIBLE
EMPLOYEES.—No individual
under 16 years of age and no incarcerated indi-
vidual will be employed by the contractor in
the manufacture or furnishing of materials,
supplies, articles, or equipment under the con-
tract, except that this section, or other law or
executive order containing similar prohibi-
tions against the purchase of goods by the
F
Source: Supplied 2024 U.S. Code historical extraction · 41 U.S.C. § 6503
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