Determining Compliance With SCA/CWHSSA And Related FLSA Requirements

  1. See the "Compliance Principles" chapter of this resource book for a detailed discussion of determining compliance with CWHSSA overtime pay requirements, where applicable.

CWHSSA Liquidated Damages

  1. Liquidated damages are computed at $10.00 per day per CWHSSA violation. 40 U.S.C. § 3702(c); 29 C.F.R. § 5.5(b)(2); FAR 48 C.F.R. §§ 22.302 and 52.222-4(b).
    1. As a matter of administrative policy, WHD does not compute liquidated damages for employees whose CWHSSA back wages are less than $20.
    2. The contractor will be advised of the potential liquidated damages and the possibility of their assessment by the contracting agency.

    The decision whether to assess the damages is made by the federal contracting agency. (Liquidated damages in excess of $500 may be waived or adjusted only with the concurrence of WHD.)

    1. Example:
                                        M      T      W      T      F      S      S      TOTALS
      REGULAR TIME      10      12     13      9      8      3      0           55
      In the above example, no overtime premium was paid. The 15 weekly overtime hours were worked on three calendar days, Thursday, Friday and Saturday. Thus, $30.00 in CWHSSA liquidated damages would be computed, and may be assessed.

    Final conference

    1. When all the fact-finding steps have been completed, the WHI will ask to meet with the contractor and/or a representative of the firm who has authority to reach decisions and commit the contractor to corrective actions if violations have occurred. The contractor will be told whether violations have occurred and, if so, what they are and how to correct them. If back wages are owed to employees, the WHI will request payment of back wages.
    2. The contractor will have an opportunity to respond to the alleged violations and/or provide an explanation as to why the violations occurred.
    3. Contractors may be represented by their accountants or attorneys at any point during this process. When the WHI has advised the contractor of his/her findings, the contractor or representative may present additional facts for consideration if violations were disclosed.
    4. If a subcontractor fails to make restitution of the back wage liability found due, the WHI should advise the prime contractor of the findings and request payment of the back wages. SCA § 3(a) and 29 C.F.R. § 4.187(c) and 4.187(e)(1).
    5. Although the WHI should advise the contractor of any potential CWHSSA liquidated damages assessment, the initial decision to assess liquidated damages for CHWSSA violations will be made by the contracting agency. FAR 48 C.F.R. § 22.302.
    6. The WHI may advise the contractor of the debarment sanctions under the SCA (discussed below). If it appears that the debarment criteria have been met, WHD will advise the contractor at the final conference of the possibility of debarment sanctions.


Consulting Services We Provide

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