[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR22.302]

[Page 397]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 22_APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS--Table of Contents
 
        Subpart 22.3_Contract Work Hours and Safety Standards Act
 
Sec.  22.302  Liquidated damages and overtime pay.

    (a) When an overtime computation discloses underpayments, the 
responsible contractor or subcontractor must pay the affected employee 
any unpaid wages and pay liquidated damages to the Government. The 
contracting officer must assess liquidated damages at the rate of $10 
per affected employee for each calendar day on which the employer 
required or permitted the employee to work in excess of the standard 
workweek of 40 hours without paying overtime wages required by the Act.
    (b) If the contractor or subcontractor fails or refuses to comply 
with overtime pay requirements of the Act and the funds withheld by 
Federal agencies for labor standards violations do not cover the unpaid 
wages due laborers and mechanics and the liquidated damages due the 
Government, make payments in the following order--
    (1) Pay laborers and mechanics the wages they are owed (or prorate 
available funds if they do not cover the entire amount owed); and
    (2) Pay liquidated damages.
    (c) If the head of an agency finds that the administratively 
determined liquidated damages due under paragraph (a) of this section 
are incorrect, or that the contractor or subcontractor inadvertently 
violated the Act despite the exercise of due care, the agency head may--
    (1) Reduce the amount of liquidated damages assessed for liquidated 
damages of $500 or less;
    (2) Release the contractor or subcontractor from the liability for 
liquidated damages of $500 or less; or
    (3) Recommend that the Secretary of Labor reduce or waive liquidated 
damages over $500.
    (d) After the contracting officer determines the liquidated damages 
and the contractor makes appropriate payments, disburse any remaining 
assessments in accordance with agency procedures.

[65 FR 46065, July 26, 2000]