79 STAT. ]
PUBLIC LAW 89-286-OCT. 22, 1965
1035
Violations, SEC. 3, (a) Any violation of any of the contract stipulations penalties. required by section 2(a)(1) or (2) or of section 2(b) of this Act 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 Act shall be paid directly to the underpaid employees from any accrued payments withheld under this Act. (b) I n accordance w4th regulations prescribed pursuant to section 4 of this Act, the Federal agency head or the Secretary is hereby authorized to carry out the provisions of this section. Contract (c) I n addition, when a violation is found of any contract stipula- cellation. cantion, 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. Enforcement SEC. 4. (a) Sections 4 and 5 of the Act of June 30, 1936 (49 Stat. authority. 2036), as amended, shall govern the Secretary's authority to enforce 41 USC 38, 39. this Act, make rules, regulations, issue orders, hold hearings, and make decisions based upon findings of fact, and take other appropriate action hereunder. (b) The Secretary may provide such reasonable limitations and may make such rules and regulations allowing reasonable variations, tolerances, and exemptions to and from any or all provisions of this Act as he may find necessary and proper in the public interest or to avoid serious impairment of the conduct of Government business. List SEC. 5. (a) The Comptroller General is directed to distribute a tors. of violalist to all agencies of the Government giving the names of persons or firms that the Federal agencies or the Secretary have found to have violated this Act. Unless the Secretary otherwise recommends, no contract of the United States shall be awarded to the persons or firms appearing on this list or to any firm, corporation, partnership, or association in which such persons or firms have a substantial interest until three years have elapsed from the date of publication of the list containing the name of such persons or firms. (b) If the accrued payments withheld under the terms of the con- Legal action. tract are insufficient to reimburse all service employees with respect to whom there has been a failure to pay the compensation required pursuant to this Act, the United States may bring action against the contractor, subcontra<!tor, or any sureties in any court of competentjurisdiction to recover the remaining amount of underpayments. A n j sums thus recovered by the United States shall be held in the deposit fund and shall be paid, on order of the Secretary, directly to the underpaid employee or employees. Any sum not paid to an employee because of inability to do so within three years shall be covered into the Treasury of the United States as miscellaneous receipts. SEC. 6. In determining any overtime pay to which such service Overtime pay. employees are entitled under any Federal law, the regular or basic hourly rate of pay of such an employee shall not include any fringe benefit payments computed hereunder which are excluded from the regular rate under the F a i r Labor Standards Act by provisions of 63 Stat. 913. section 7(d) thereof. 29 USC 207. SEC. 7. This Act shall not apply to— Exemptions.
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