EP 1180-1-1
1 Aug 01
withheld under the contract.
f. The Comptroller General, recognizing that unpaid laborers have an equitable right to be paid from
contract retainages, has also held that wage underpayments under the Act have priority over any claim by
the trustee in bankruptcy. Further, in Eddleman v. United States Department of Labor (923 F. 2d. 782,
10th Cir. 1991), the DOL's administrative enforcement proceeding for pre- bankruptcy violations of the
SCA was deemed exempted from the automatic stay provisions within the Bankruptcy Act at 11 USC
362(a)).
8-8. Enforcement. As noted above, the DOL has exclusive enforcement authority under the SCA.
Accordingly, reliance on advice from contracting agency officials is not a defense against a contractor's
liability for back wages under the Act (see 29 CFR 4.187(e)(5)). COs must therefore exercise due
caution with respect to questions arising as to contractor compliance with the Act.
8-9. Overtime.
a. While the DOL has exclusive enforcement authority with respect to the SCA, there are
nonetheless certain enforcement actions which COs are required to undertake when there are violations
of the Contract Work Hours and Safety Standards Act (CWHSSA). In this regard, the CO shall follow
the same procedures and file the same reports for violations of the CWHSSA under service contracts as
are required under construction contracts.
b. Typically, COs will be advised of CWHSSA violations by the DOL following the completion of a
DOL SCA/CWHSSA investigation. Further such advice will provide the CO with copies of the DOL
Compliance Officer's computations of CWHSSA wage underpayments and CWHSSA liquidated
damages. The CO will review such findings and computations and, in the absence of any errors, may
adopt the DOL's findings as his own.
c. In those cases where the employees allege violations of the CWHSSA, COs shall notify the
District Labor Advisor who will make such additional investigation and coordination with the DOL as
may be necessary to determine the appropriate course of action to be taken by the CO.
d. All correspondence with contractors regarding CWHSSA violations, withholding of liquidated
damages, and restitution payments resulting from violations will be initiated by the District Labor Advisor
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