FAR and DFARS › DFARS Part 222: Application of Labor Laws to Government Acquisitions › Subpart 222.4
DFARS 222.406-9 Withholding from or suspension of contract payments.
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 to involve the labor advisor when a contractor owes money for wage underpayments or liquidated damages under Construction Wage Rate Requirements or CWHSS statute, and payments are not available to cover that debt. It also explains how withheld funds are handled at contract closeout and when liquidated damages can be adjusted or waived.
Applies to: Contractors with Construction Wage Rate Requirements or CWHSS statute wage underpayments or liquidated damages
Key terms: Construction Wage Rate Requirements · CWHSS statute · liquidated damages · withholding from contract payments · labor advisor
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Withholding from contract payments. The contracting officer shall contact the labor advisor for assistance when payments due a contractor are not available to satisfy that contractor's liability for Construction Wage Rate Requirements or CWHSS statute wage underpayments or liquidated damages.
(c) Disposition of contract payments withheld or suspended—(3) Limitation on forwarding or returning funds. When disposition of withheld funds remains the final action necessary to close out a contract, the Department of Labor will retain withheld funds pending completion of an investigation or other administrative proceedings.
(4) Liquidated damages. (A) The agency head may adjust liquidated damages of $500 or less when the amount assessed is incorrect or waive the assessment when the violations—
(1) Were nonwillful or inadvertent; and
(2) Occurred notwithstanding the exercise of due care by the contractor, its subcontractor, or their agents.
(B) The agency head may recommend to the Administrator, Wage and Hour Division, that the liquidated damages over $500 be adjusted because the amount assessed is incorrect. The agency head may also recommend the assessment be waived when the violations—
(1) Were nonwillful or inadvertent; and
(2) Occurred notwithstanding the exercise of due care by the contractor, the subcontractor, or their agents.
← 222.406-8 Investigations. · 222.406-10 Disposition of disputes concerning construction contract labor standards enforcement. →
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.