- Remedies & Sanctions

Remedies and sanctions E.O. §§ 5 & 6; FAR 48 C.F.R. §§ 22.1206 and 52.222-17; 29 C.F.R. § 9.24.

  1. The Secretary of Labor has the authority to issue final orders prescribing appropriate sanctions and remedies, including, but not limited to, orders requiring the successor contractor to offer employment, in positions for which the employees are qualified, to service employees from the predecessor contract and payment of wages lost. E.O. § 6; FAR 48 C.F.R. § 22.1206(a); 29 C.F.R. § 9.24(a).
  2. The nondisplacement contract clause required to be included in covered contracts states that:
    1. If it is determined that the contractor or its subcontractors are not in compliance with the requirements of this clause or any regulation or order of the Secretary,
      1. appropriate sanctions may be imposed and remedies invoked against the contractor or its subcontractors, as provided in E.O. 13495, the regulations, and relevant orders of the Secretary, or as otherwise provided by law. FAR 48 C.F.R. § 52.222-17(i); 29 C.F.R. Part 9, Appendix A, paragraph (d).
    If the contracting officer or WHD finds that the predecessor contractor has failed to provide the list of the names of employees working under the contract required by FAR 48 C.F.R. § 22.1204 (in accordance with 29 C.F.R. § 9.12(e)), the contracting officer may, in his or her discretion, or on request by WHD, take action to suspend the payment of contract funds until such time as the contractor provides the list to the contracting officer. FAR 48 C.F.R. § 22.1206(c).
  3. Withholding of funds & debarment E.O. § 6; 29 C.F.R. § 9.24(c); FAR 48 C.F.R. § 22.1206(b).
    1. After an investigation and a determination by WHD that lost wages or other monetary relief is due, WHD may direct that so much of the accrued payments due on either the contract or any other contract between the contractor and the Government shall be withheld as are necessary to pay the monies due.
      1. Upon the final order that such monies are due, WHD may direct that such withheld funds be transferred to DOL for disbursement. 29 C.F.R. 9.24(c); 22.1206(b).
    2. Where the WHD finds that a contractor or subcontractor
      1. has failed to comply with any order of the Secretary or
      2. has committed willful violations of E.O. or the implementing regulations or aggravated violations of 29 Part 9,
      3. WHD may order that the contractor or subcontractor, and its responsible officers, and any firm in which the contractor or subcontractor has a substantial interest, shall be ineligible to be awarded any contract of the United States for a period of up to 3 years. E.O. § 6; 29 C.F.R. § 9.24(d); FAR 48 C.F.R. § 22.1206(d).
    3. Neither an order for debarment of any contractor or subcontractor from further Government contracts under this section nor the inclusion of a contractor or subcontractor on a published list of noncomplying contractors shall be carried out without affording the contractor or subcontractor an opportunity for a hearing. E.O. § 6; 29 C.F.R. § 9.24(d).

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