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Postings and penalties/sanctions
  • Contractors who violate the PCA may be subject to withholding of contract payments, fines, legal action, and more.

Employers must post the “Notice to Employees Working on Government Contracts.”

Contractors and subcontractors who violate the Act may be subject to a variety of penalties. The underpayment of wages and overtime pay may result in the withholding of contract payments in amounts sufficient to reimburse the underpayment. The penalty for employing underage minors or convicts is $10 per day per person, for which contract payments may also be withheld.

The Department may also bring legal action to collect wage underpayment and fines for illegally employing minors and convicts. Willful violations may subject the employer to cancellation of the current contract and debarment from future federal contracts for a three-year period.