FAR 22.1905—Enforcement of Executive Order Minimum Wage Requirements.

DOL controls investigations

The Secretary of Labor, through the Administrator, has exclusive authority to investigate potential violations and secure compliance under the E.O. and its implementing regulations. Contracting agencies may not conduct compliance investigations under 29 CFR part 10 or part 23, although contracting officers retain authority to enforce other contract terms and conditions.

Payment withholding is mandatory when directed

Contracting officers must withhold payment when the Administrator directs them to do so. They must also withhold payment on their own if the contractor fails to provide payroll records as required by paragraph (e)(2) of clause 52.222-55, until the noncompliance is corrected.

Complaints may be filed broadly

Any person, entity, or organization that believes a violation occurred may file a complaint with either the contracting officer or the Administrator. Complaints can be oral or written, which means agencies must be prepared to receive and route allegations promptly.

Complainant identity is protected

The identity of a complainant or witness, and any statement portions that would reveal that identity, may not be disclosed to anyone other than Federal officials without the individual’s consent unless disclosure is otherwise authorized by law. This confidentiality rule supports reporting and cooperation without fear of retaliation.

Contracting officer reporting duty

When a complaint is received, or when the contracting officer is told the Administrator received one, the contracting officer must report specified information to the Department of Labor within 14 days if it is available without conducting an investigation. The report includes the allegation, available statements, proof the clause was included, settlement information if any, and other relevant facts requested by Wage and Hour.

Administrator conducts investigations

If warranted, the Administrator investigates complaints under the procedures in 29 CFR part 23.430. The contracting officer does not investigate the merits of the wage claim, but must support the process by providing available information and taking required contract administration actions.

Unpaid wages can trigger withholding and transfer

If an investigation shows the contractor failed to pay the applicable minimum wage, the Administrator notifies the contractor and agency and requests correction. If the contractor does not remedy the violation, the Administrator may direct withholding from the contract or other federal contracts, and the agency must transfer withheld funds to DOL after final decision and direction.

Retaliation violations can lead to worker relief

If a contractor violates the antiretaliation provision in paragraph (i) of clause 52.222-55, the Administrator may provide relief to the affected worker under 29 CFR 23.440. This makes retaliation a separate enforcement issue from unpaid wages.

Debarment is possible for serious disregard

DOL may initiate debarment proceedings when a contractor has disregarded obligations under 29 CFR part 23. Contracting officers should also consider notifying the agency suspending and debarring official when significant contract-term violations related to this subpart occur.

Missing clause must be added retroactively

If the agency failed to include the required clause in a contract covered by E.O. 14026, the agency must incorporate it retroactively to the start of performance. The agency must do this on its own or within 15 calendar days after notice from an authorized DOL representative, using whatever authority is needed to amend the contract and address any necessary cost adjustments.

Contracting Officer

Receive complaints, protect confidentiality, and report required information to DOL within 14 days when available without investigation. Withhold payments when directed by the Administrator, and also withhold payment if the contractor fails to furnish payroll records as required by clause 52.222-55 until corrected. Do not conduct compliance investigations under the DOL regulations, but continue to enforce other contract terms and consider notifying the suspending and debarring official for significant related violations.

Administrator / Department of Labor, Wage and Hour Division

Investigate complaints when warranted, determine whether unpaid wage or retaliation violations occurred, direct withholding when appropriate, request corrective action, and administer remedies under the applicable DOL regulations. DOL also may initiate debarment proceedings and may require retroactive inclusion of the contract clause when it was omitted.

Contractor

Pay workers the applicable E.O. minimum wage, comply with payroll-record and other clause requirements, correct violations when notified, and avoid retaliation against workers who assert rights or participate in investigations. The contractor must also respond to DOL and agency requests and may face withholding, debarment, or other sanctions if it fails to comply.

Contracting Agency

Support enforcement by transmitting withheld funds to DOL after final decision and direction, incorporating the clause retroactively when omitted, and coordinating with DOL on complaint and remedy matters. The agency must also ensure contract administration actions are taken within its authority even though it cannot conduct the wage compliance investigation itself.

Workers, Complainants, and Other Reporting Parties

May file complaints with either the contracting officer or the Administrator if they believe a violation occurred. Their identities and identifying statements are protected from disclosure except as authorized by law or with consent.