41 U.S.C. § 6705

Violations

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(a)Liability of Responsible Party.—A party responsible for a violation of a contract provision required under section 6703(1) or (2) of this title or a violation of section 6704 of this title is liable for an amount equal to the sum of any deduction, rebate, refund, or underpayment of compensation due any employee engaged in the performance of the contract.(b)Recovery of Amounts Underpaid to Employees.—(1)Withholding accrued payments due on contracts.—The total amount determined under subsection (a) to be due any employee engaged in the performance of a contract may be withheld from accrued payments due on the contract or on any other contract between the same contractor and the Federal Government. The amount withheld shall be held in a deposit fund. On order of the Secretary, the compensation found by the Secretary or the head of a Federal agency to be due an underpaid employee pursuant to this chapter shall be paid from the deposit fund directly to the underpaid employee.(2)Bringing actions against contractors.—If the accrued payments withheld under the terms of the contract are insufficient to reimburse a service employee with respect to whom there has been a failure to pay the compensation required pursuant to this chapter, the Federal Government may bring action against the contractor, subcontractor, or any sureties in any court of competent jurisdiction to recover the remaining amount of underpayment. Any amount recovered shall be held in the deposit fund and shall be paid, on order of the Secretary, directly to the underpaid employee. Any amount not paid to an employee because of inability to do so within 3 years shall be covered into the Treasury as miscellaneous receipts.(c)Cancellation and Alternative Completion.—In addition to other actions in accordance with this section, when a violation of any contract stipulation is found, the Federal agency that made the contract may cancel the contract on written notice to the original contractor. The Federal Government may then make other contracts or arrangements for the completion of the original contract, charging any additional cost to the original contractor.(d)Enforcement of Section.—In accordance with regulations prescribed pursuant to section 6707(a)–(d) of this title, the Secretary or the head of a Federal agency may carry out this section.(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3814.)

Historical and Revision Notes
Revised Section	Source (U.S. Code)	Source (Statutes at Large)
6705(a)	41:352(a) (1st sentence).	Pub. L. 89–286, §§ 3, 5(b), Oct. 22, 1965, 79 Stat. 1035.
6705(b)(1)	41:352(a) (2d–last sentences).
6705(b)(2)	41:354(b)
6705(c)	41:352(c).
6705(d)	41:352(b).

In subsection (c), the words “to other actions in accordance with this section” are added for clarity.

Notes of Decisions

Cited in 4 cases (4 in the last 5 years), 2021–2023 · leading case: Holstad v. United States Dep't of Labor (D. Minnesota 2021).

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Holstad v. United States Dep't of Labor (D. Minnesota 2021). · cites it 3× “41 U.S.C. § 6705 (a)-(b). And under the SCA, liability extends to any “party responsible,” which includes corporate officers “who actively direct[] and supervise[] the contract performance” and “corporate officers who control, or are responsible for control of, the corporate…”

United States v. Holstad (D. Minnesota 2023). · cites it 2× “§ 2415 (a); 41 U.S.C. § 6705 (b)(2). The parties executed tolling agreements excluding the time between May 24, 2021 and July 30, 2022.”

Wayne Holstad v. U.S. Dept. of Labor (8th Cir. 2022). “§ 6703 (2) (providing that federal contractors must pay service employees engaged in the performance of contract work certain fringe benefits); that Holstad was a “party responsible” under the statute, see 41 U.S.C. § 6705 (a) (“A party responsible for a violation of a contract…”

BCFS Health & Human Servs. v. United States Dep't of Labor (W.D. Tex. 2022). “See 41 U.S.C. § 6705 (b). And enforcement to carry out the statute lies with “the Secretary or the head of a Federal agency” as set out in “regulations prescribed pursuant to section 6707(a)-(d).”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.