Overview
This section outlines the enforcement mechanisms for Executive Order 14026 minimum wage requirements, defining the division of authority between the Department of Labor and contracting agencies. It establishes the procedures for handling complaints, conducting investigations, and applying remedies or sanctions for non-compliance.
Key Rules
- Enforcement Authority: The Department of Labor (DOL) Administrator has the sole authority to conduct compliance investigations; Contracting Officers (COs) do not have the authority to conduct these investigations but must still enforce general contract terms.
- Withholding of Payments: The CO must withhold contract payments if directed by the DOL or if the contractor fails to furnish required payroll records under clause 52.222-55.
- Complaint Processing: COs must report received complaints to the DOL within 14 days and are strictly prohibited from disclosing the identity of complainants without consent.
- Remedies and Sanctions: Penalties for violations include the transfer of withheld funds to the DOL for unpaid wages, worker relief for anti-retaliation violations, and potential debarment proceedings.
- Retroactive Clause Inclusion: If the required minimum wage clause was omitted from a covered contract, the agency must incorporate it retroactively to the start of performance, even if it requires paying additional costs or amending the contract.
Practical Implications
- Contractors face immediate financial risk in the form of payment withholding if they fail to maintain and provide transparent payroll records upon request.
- Agencies must exercise diligence during the solicitation phase because the administrative and financial cost of retroactively correcting an omitted wage clause falls on the contracting agency.