SpendQueryBeta

FAR and DFARS › DFARS Part 222: Application of Labor Laws to Government Acquisitions › Subpart 222.3

DFARS 222.302 Liquidated damages and overtime pay.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells the contracting officer what to do when a contractor is suspected of violating Contract Work Hours and Safety Standards rules. The officer withholds available funds, notifies the contractor in writing of the basis for the liquidated damages, and tells the contractor about its 60-day right to appeal. The assessment becomes final if the contractor does not appeal within 60 days or after the specified appeal outcomes.

Applies to: Contracting officers handling Contract Work Hours and Safety Standards violations and affected contractors

What it requires

  • Immediately withhold such funds as are available
  • Give the contractor written notification of the withholding and a statement of the basis for the liquidated damages assessment
  • Inform the contractor of its 60 days right to appeal the assessment, through the contracting officer, to the agency official responsible for acting on such appeals
  • If funds available for withholding are insufficient to cover liquidated damages, ask the contractor to pay voluntarily such funds as are necessary to cover the total liquidated damage assessment

Key terms: liquidated damages · Contract Work Hours and Safety Standards · withholding · 60 days right to appeal · final administrative determination

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

Upon receipt of notification of Contract Work Hours and Safety Standards violations, the contracting officer shall—

(1) Immediately withhold such funds as are available;

(2) Give the contractor written notification of the withholding and a statement of the basis for the liquidated damages assessment. The written notification shall also inform the contractor of its 60 days right to appeal the assessment, through the contracting officer, to the agency official responsible for acting on such appeals; and

(3) If funds available for withholding are insufficient to cover liquidated damages, ask the contractor to pay voluntarily such funds as are necessary to cover the total liquidated damage assessment.

(d)(i) The assessment shall become the final administrative determination of contractor liability for liquidated damages when—

(A) The contractor fails to appeal to the contracting agency within 60 days from the date of the withholding of funds;

(B) The department agency, following the contractor's appeals, issues a final order which affirms the assessment of liquidated damages or waives damages of $500 or less; or

(C) The Secretary of Labor takes final action on a recommendation of the agency head to waive or adjust liquidated damages in excess of $500.

(ii) Upon final administrative determination of the contractor's liability for liquidated damages, the contracting officer shall transmit withheld or collected funds determined to be owed the Government as liquidated damages to the servicing finance and accounting officer for crediting to the appropriate Government Treasury account. The contracting officer shall return any excess withheld funds to the contractor.

← 222.103-4 Approvals. · 222.402 Applicability. →

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 222.302 Liquidated damages and overtime pay · SpendQuery