---
kind: "range"
citation: "41 U.S.C. §§ 6501–6507"
title: "41"
from: "6501"
to: "6507"
count: 7
release: "119-102"
url: "https://uscodex.org/usc/41/6501..6507"
---

# §6501. Definitions


In this chapter—

- (1) **Agency of the united states.—** The term “agency of the United States” means an executive department, independent establishment, or other agency or instrumentality of the United States, the District of Columbia, or a corporation in which all stock is beneficially owned by the Federal Government.
- (2) **Person.—** The term “person” includes one or more individuals, partnerships, associations, corporations, legal representatives, trustees, trustees in cases under [title 11](/usc/11.md), or receivers.
- (3) **Secretary.—** The term “Secretary” means the Secretary of Labor.

# §6502. Required contract terms


A contract made by an [agency of the United States](/usc/41/6501.md?p=1) for the manufacture or furnishing of materials, supplies, articles, or equipment, in an amount exceeding $10,000, shall include the following representations and stipulations:

- (1) **Minimum wages to be paid.—** All individuals employed by the contractor in the manufacture or furnishing of materials, supplies, articles, or equipment under the contract will be paid, without subsequent deduction or rebate on any account, not less than the prevailing minimum wages, as determined by the [Secretary](/usc/41/6501.md?p=3), for individuals employed in similar work or in the particular or similar industries or groups of industries currently operating in the [locality](/usc/41/6509.md?p=b) in which the materials, supplies, articles, or equipment are to be manufactured or furnished under the contract, except that this paragraph applies only to purchases or contracts relating to industries that have been the subject matter of a determination by the [Secretary](/usc/41/6501.md?p=3).
- (2) **Maximum number of hours to be worked in a week.—** No individual employed by the contractor in the manufacture or furnishing of materials, supplies, articles, or equipment under the contract shall be permitted to work in excess of 40 hours in any one week, except that this paragraph does not apply to an employer who has entered into an agreement with [employees](/usc/41/8101.md?p=a-6) pursuant to paragraph (1) or (2) of section 7(b) of the Fair Labor Standards Act of 1938 ([29 U.S.C. 207(b)(1)](/usc/29/207.md?p=b-1) or (2)).
- (3) **Ineligible employees.—** No individual under 16 years of age and no incarcerated individual will be employed by the contractor in the manufacture or furnishing of materials, supplies, articles, or equipment under the contract, except that this section, or other law or executive order containing similar prohibitions against the purchase of goods by the Federal Government, does not apply to convict labor that satisfies the conditions of [section 1761(c) of title 18](/usc/18/1761.md?p=c).
- (4) **Standards of places and working conditions where contract performed.—** No part of the contract will be performed, and no materials, supplies, articles, or equipment will be manufactured or fabricated under the contract, in plants, factories, buildings, or surroundings, or under working conditions, that are unsanitary, hazardous, or dangerous to the health and safety of [employees](/usc/41/8101.md?p=a-6) engaged in the performance of the contract. Compliance with the safety, sanitary, and factory inspection laws of the State in which the work or part of the work is to be performed is prima facie evidence of compliance with this paragraph.

# §6503. Breach or violation of required contract terms

- (a) **Applicable Breach or Violation.—** This section applies in case of breach or violation of a representation or stipulation included in a contract under [section 6502 of this title](/usc/41/6502.md).
- (b) **Liquidated Damages.—** In addition to damages for any other breach of the contract, the party responsible for a breach or violation described in [subsection (a)](#a) is liable to the Federal Government for the following liquidated damages:
  - (1) An amount equal to the sum of $10 per day for each individual under 16 years of age and each incarcerated individual knowingly employed in the performance of the contract.
  - (2) An amount equal to the sum of each underpayment of wages due an [employee](/usc/41/8101.md?p=a-6) engaged in the performance of the contract, including any underpayments arising from deductions, rebates, or refunds.
- (c) **Cancellation and Alternative Completion.—** In addition to the Federal Government being entitled to damages described in [subsection (b)](#b), the [agency of the United States](/usc/41/6501.md?p=1) that made the contract may cancel the contract and make open-market purchases or make other contracts for the completion of the original contract, charging any additional cost to the original contractor.
- (d) **Recovery of Amounts Due.—** An amount due the Federal Government because of a breach or violation described in [subsection (a)](#a) may be withheld from any amounts owed the contractor under any contract under [section 6502 of this title](/usc/41/6502.md) or may be recovered in a suit brought by the Attorney General.
- (e) **Employee Reimbursement for Underpayment of Wages.—** An amount withheld or recovered under [subsection (d)](#d) that is based on an underpayment of wages as described in [subsection (b)(2)](#b-2) shall be held in a special deposit account. On order of the [Secretary](/usc/41/6501.md?p=3), the amount shall be paid directly to the underpaid [employee](/usc/41/8101.md?p=a-6) on whose account the amount was withheld or recovered. However, an [employee](/usc/41/8101.md?p=a-6)’s claim for payment under this subsection may be entertained only if made within one year from the date of actual notice to the contractor of the withholding or recovery.

# §6504. Three-year prohibition on new contracts in case of breach or violation

- (a) **Distribution of List.—** The Comptroller General shall distribute to each [agency of the United States](/usc/41/6501.md?p=1) a list containing the names of [persons](/usc/41/6501.md?p=2) found by the [Secretary](/usc/41/6501.md?p=3) to have breached or violated a representation or stipulation included in a contract under [section 6502 of this title](/usc/41/6502.md).
- (b) **Three-Year Prohibition.—** Unless the [Secretary](/usc/41/6501.md?p=3) recommends otherwise, a contract described in [section 6502 of this title](/usc/41/6502.md) may not be awarded to a [person](/usc/41/6501.md?p=2) named on the list under [subsection (a)](#a), or to a firm, corporation, partnership, or association in which the [person](/usc/41/6501.md?p=2) has a controlling interest, until 3 years have elapsed from the date of the determination by the [Secretary](/usc/41/6501.md?p=3) that a breach or violation occurred.

# §6505. Exclusions

- (a) **Items Available in the Open Market.—** This chapter does not apply to the purchase of materials, supplies, articles, or equipment that may usually be bought in the [open market](/usc/41/6509.md?p=b).
- (b) **Perishables and Agricultural Products.—** This chapter does not apply to any of the following:
  - (1) Perishables, including dairy, livestock and nursery products.
  - (2) Agricultural or farm products processed for first sale by the original producers.
  - (3) Contracts made by the [Secretary](/usc/41/6501.md?p=3) of Agriculture for the purchase of agricultural commodities or products of agricultural commodities.
- (c) **Carriage of Freight or Personnel.—** This chapter may not be construed to apply to—
  - (1) the carriage of freight or personnel by vessel, airplane, bus, truck, express, or railway line where published tariff rates are in effect; or
  - (2) common carriers subject to the Communications Act of 1934 ([47 U.S.C. 151](/usc/47/151.md) et seq.).

# §6506. Administrative provisions

- (a) **In General.—** The [Secretary](/usc/41/6501.md?p=3) shall administer this chapter.
- (b) **Regulations.—** The [Secretary](/usc/41/6501.md?p=3) may make, amend, and rescind regulations as necessary to carry out this chapter.
- (c) **Use of Government Officers and Employees.—** The [Secretary](/usc/41/6501.md?p=3) shall use Federal officers and [employees](/usc/41/8101.md?p=a-6) and, with a State’s consent, State and local officers and [employees](/usc/41/8101.md?p=a-6) as the [Secretary](/usc/41/6501.md?p=3) finds necessary to assist in the administration of this chapter.
- (d) **Appointments.—** The [Secretary](/usc/41/6501.md?p=3) shall appoint an administrative officer and attorneys, experts, and other [employees](/usc/41/8101.md?p=a-6) from time to time as the [Secretary](/usc/41/6501.md?p=3) finds necessary for the administration of this chapter. The appointments are subject to chapter 51 and subchapter III of [chapter 53](/usc/5/chptIII-sptD-ch53.md) of title 5 and other law applicable to the employment and [compensation](/usc/41/6701.md?p=1) of officers and [employees](/usc/41/8101.md?p=a-6) of the Federal Government.
- (e) **Investigations.—** The [Secretary](/usc/41/6501.md?p=3), or an authorized representative of the [Secretary](/usc/41/6501.md?p=3), may make investigations and findings as provided in this chapter and may, in any part of the United States, prosecute an inquiry necessary to carry out this chapter.

# §6507. Hearing authority and procedures

- (a) **Record and Hearing Requirements for Wage Determinations.—** A wage determination under [section 6502(1) of this title](/usc/41/6502.md?p=1) shall be made on the record after opportunity for a hearing.
- (b) **Authority To Hold Hearings.—** The [Secretary](/usc/41/6501.md?p=3) or an impartial representative designated by the [Secretary](/usc/41/6501.md?p=3) may hold hearings when there is a complaint of breach or violation of a representation or stipulation included in a contract under [section 6502 of this title](/usc/41/6502.md). The [Secretary](/usc/41/6501.md?p=3) may initiate hearings on the [Secretary](/usc/41/6501.md?p=3)’s own motion or on the application of a [person](/usc/41/6501.md?p=2) affected by the ruling of an [agency of the United States](/usc/41/6501.md?p=1) relating to a proposal or contract under this chapter.
- (c) **Orders To Compel Testimony.—** The [Secretary](/usc/41/6501.md?p=3) or an impartial representative designated by the [Secretary](/usc/41/6501.md?p=3) may issue orders requiring witnesses to attend hearings held under this section and to produce evidence and testify under oath. Witnesses shall be paid fees and mileage at the same rates as witnesses in courts of the United States.
- (d) **Enforcement of Orders.—** If a [person](/usc/41/6501.md?p=2) refuses or fails to obey an order issued under [subsection (c)](#c), the [Secretary](/usc/41/6501.md?p=3) or an impartial representative designated by the [Secretary](/usc/41/6501.md?p=3) may bring an action to enforce the order in a district court of the United States or in the district court of a territory or possession of the United States. A court has jurisdiction to enforce the order if the inquiry is being carried out within the court’s judicial district or if the [person](/usc/41/6501.md?p=2) is found or resides or transacts business within the court’s judicial district. The court may issue an order requiring the [person](/usc/41/6501.md?p=2) to obey the order issued under [subsection (c)](#c), and the court may punish any further refusal or failure as contempt of court.
- (e) **Findings of Fact.—** After notice and a hearing, the [Secretary](/usc/41/6501.md?p=3) or an impartial representative designated by the [Secretary](/usc/41/6501.md?p=3) shall make findings of fact. The findings are conclusive for agencies of the United States. If supported by a preponderance of the evidence, the findings are conclusive in any court of the United States.
- (f) **Decisions.—** The [Secretary](/usc/41/6501.md?p=3) or an impartial representative designated by the [Secretary](/usc/41/6501.md?p=3) may make decisions, based on findings of fact, that are considered necessary to enforce this chapter.