41 U.S.C. § 6704 — Limitation on minimum wage

Page 175 TITLE 41—PUBLIC CONTRACTS § 6705 SEC. 8. Enforcement. (a) The Secretary shall have the authority to investigate potential violations of, and ob- tain compliance with, this order. In such proceedings, the Secretary shall have the authority to issue final or- ders prescribing appropriate sanctions and remedies, including, but not limited to, orders requiring employ- ment and payment of wages lost. The Secretary may also provide that, if a contractor or subcontractor has failed to comply with any order of the Secretary or has committed willful violations of this order or the regu- lations issued pursuant thereto, the contractor or sub- contractor, and its responsible officers, and any firm in which the contractor or subcontractor has a substan- tial interest, may be ineligible to be awarded any con- tract of the United States for a period of up to 3 years. Neither an order for debarment of any contractor or subcontractor from further Federal Government con- tracts under this section nor the inclusion of a con- tractor or subcontractor on a published list of noncom- plying contractors shall be carried out without afford- ing the contractor or subcontractor an opportunity to present information and argument in opposition to the proposed debarment or inclusion on the list. (b) This order creates no rights under the Contract Disputes Act, 41 U.S.C. 7101 et seq., and disputes regard- ing the requirements of the contract clause prescribed by section 3 of this order, to the extent permitted by law, shall be disposed of only as provided by the Sec- retary in regulations issued under this order. SEC. 9. Revocation. Executive Order 13897 of October 31, 2019 (Improving Federal Contractor Operations by Revoking Executive Order 13495) [formerly set out above], is revoked. Executive Order 13495 of January 30, 2009 (Nondisplacement of Qualified Workers Under Service Contracts) [formerly set out above], remains revoked. SEC. 10. Severability. If any provision of this order, or the application of any provision of this order to any person or circumstance, is held to be invalid, the re- mainder of this order and its application to any other person or circumstance shall not be affected thereby. SEC. 11. Effective Date. This order shall become effec- tive immediately and shall apply to solicitations issued on or after the effective date of the final regulations issued by the FAR Council under section 7 of this order. For solicitations issued between the date of this order and the date of the action taken by the FAR Council under section 7 of this order, or solicitations that have already been issued and are outstanding as of the date of this order, agencies are strongly encouraged, to the extent permitted by law, to include in the relevant so- licitation the contract clause described in section 3 of this order. SEC. 12. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive de- partment or agency, or the head thereof; or (ii) the functions of the Director of the Office of Man- agement and Budget relating to budgetary, administra- tive, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appro- priations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforce- able at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. J.R. BIDEN, JR. § 6704. Limitation on minimum wage (a) IN GENERAL.—A contractor that makes a contract with the Federal Government, the prin- cipal purpose of which is to furnish services through the use of service employees, and any subcontractor, may not pay less than the min- imum wage specified under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) to an employee engaged in performing work on the contract. (b) VIOLATIONS.—Sections 6705 to 6707(d) of this title are applicable to a violation of this section. (Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3813.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 6704 ............ 41:351(b). Pub. L. 89–286, § 2(b), Oct. 22, 1965, 79 Stat. 1034; Pub. L. 94–489, § 1(b), Oct. 13, 1976, 90 Stat. 2358. § 6705. Violations (a) LIABILITY OF RESPONSIBLE PARTY.—A party responsible for a violation of a contract provi- sion required under section 6703(1) or (2) of this title or a violation of section 6704 of this title is liable for an amount equal to the sum of any de- duction, rebate, refund, or underpayment of compensation due any employee engaged in the performance of the contract. (b) RECOVERY OF AMOUNTS UNDERPAID TO EM- PLOYEES.— (1) WITHHOLDING ACCRUED PAYMENTS DUE ON CONTRACTS.—The total amount determined under subsection (a) to be due any employee engaged in the performance of a contract may be withheld from accrued payments due on the contract or on any other contract between the same contractor and the Federal Government. The amount withheld shall be held in a deposit fund. On order of the Secretary, the compensa- tion found by the Secretary or the head of a Federal agency to be due an underpaid em- ployee pursuant to this chapter shall be paid from the deposit fund directly to the under- paid employee. (2) BRINGING ACTIONS AGAINST CONTRAC- TORS.—If the accrued payments withheld under the terms of the contract are insuffi- cient to reimburse a service employee with re- spect to whom there has been a failure to pay the compensation required pursuant to this chapter, the Federal Government may bring action against the contractor, subcontractor, or any sureties in any court of competent ju- risdiction to recover the remaining amount of underpayment. Any amount recovered shall be held in the deposit fund and shall be paid, on order of the Secretary, directly to the under- paid employee. Any amount not paid to an em- ployee because of inability to do so within 3 years shall be covered into the Treasury as miscellaneous receipts. (c) CANCELLATION AND ALTERNATIVE COMPLE- TION.—In addition to other actions in accordance with this section, when a violation of any con- tract stipulation is found, the Federal agency that made the contract may cancel the contract on written notice to the original contractor. The Federal Government may then make other con- tracts or arrangements for the completion of the original contract, charging any additional cost to the original contractor. (d) ENFORCEMENT OF SECTION.—In accordance with regulations prescribed pursuant to section 6707(a)–(d) of this title, the Secretary or the head of a Federal agency may carry out this sec- tion.