41 U.S.C. § 352 : US Code - Section 352: Violations

Search 41 U.S.C. § 352 : US Code - Section 352: Violations

(a) Liability of responsible party; withholding payments due on
contract; payment of underpaid employees from withheld payments
Any violation of any of the contract stipulations required by
section 351(a)(1) or (2) or of section 351(b) of this title shall
render the party responsible therefor liable for a sum equal to the
amount of any deductions, rebates, refunds, or underpayment of
compensation due to any employee engaged in the performance of such
contract. So much of the accrued payment due on the contract or any
other contract between the same contractor and the Federal
Government may be withheld as is necessary to pay such employees.
Such withheld sums shall be held in a deposit fund. On order of the
Secretary, any compensation which the head of the Federal agency or
the Secretary has found to be due pursuant to this chapter shall be
paid directly to the underpaid employees from any accrued payments
withheld under this chapter.
(b) Enforcement of section
In accordance with regulations prescribed pursuant to section 353
of this title, the Federal agency head or the Secretary is hereby
authorized to carry out the provisions of this section.
(c) Cancellation of contract; contracts for completion of original
contract; liability of original contractor for additional cost
In addition, when a violation is found of any contract
stipulation, the contract is subject upon written notice to
cancellation by the contracting agency. Whereupon, the United
States may enter into other contracts or arrangements for the
completion of the original contract, charging any additional cost
to the original contractor.