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Enforcement and penalties/sanctions
  • The Wage and Hour Division enforces the wage and hour requirements of the Act. OSHA enforces its safety and health requirements.
  • Violations of SCA may result in contract termination and liability for any resulting costs to the government, withholding of contract payment, and other penalties.

The Wage and Hour Division enforces the wage and hour requirements of the Act, while the Occupational Safety and Health Administration (OSHA) enforces its safety and health requirements.

Violations of the SCA may result in contract terminations and liability for any resulting costs to the government, withholding of contract payments in sufficient amounts to cover wage and fringe benefit underpayments, legal action to recover the underpayments, and debarment from future contracts for up to three years.

Contractors and subcontractors may challenge determinations of violations and debarment before an administrative law judge. Contractors and subcontractors may appeal decisions of administrative law judges to the Administrative Review Board. Final Board determinations on violations and debarment may be appealed to and are enforceable through the federal courts.