48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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12 sections with “underpayments”

  • FAR 22.406-9 Withholding from or suspension of contract payments.
    … assessed liquidated damages, and unless the contractor makes restitution, validated wage underpayments. (b) Suspension of contract payments. If a contractor or subcontractor fails or refuses to comply with the labor standards clauses of t…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …ial costs; and (B) Any documents supporting payment of those invoices. (5) Overpayments/Underpayments. Each payment previously made shall be subject to reduction to the extent of amounts, on preceding invoices, that are found by the Contr…
  • FAR 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 liquidat…
  • FAR 22.406-8 Investigations.
    … and any corrective action taken by the contractor, in investigations that disclose— (1) Underpayments totaling $1,000 or more; (2) Aggravated or willful violations (or, when the contracting officer believes that the contractor has disreg…
  • FAR 22.1022 Withholding of contract payments.
    … the responsible contractor liable for the amount of any deductions, rebates, refunds, or underpayments (which includes nonpayment) of compensation due employees performing the contract. The contracting officer may withhold—or, upon written…
  • FAR 22.2109 Enforcement of Executive Order 13706 paid sick leave requirements.
    …tion any of the records identified in 29 CFR 13.25. (2) Civil actions to recover greater underpayments than those withheld. (i) If the payments withheld under 29 CFR 13.11(c) are insufficient to reimburse all monetary relief due, or if the…
  • FAR 30.605 Processing noncompliances.
    …racts. (B) Flexibly-priced contracts and subcontracts. (iii) The total overpayments and underpayments for fixed-price and flexibly-priced contracts made by the Government during the period of noncompliance; and (5) When requested by the …
  • FAR 52.216-7 Allowable Cost and Payment.
    …cting Officer not to constitute allowable costs or (2) adjusted for prior overpayments or underpayments. (h) Final payment. (1) Upon approval of a completion invoice or voucher submitted by the Contractor in accordance with paragraph (d)(5…
  • FAR 52.216-26 Payments of Allowable Costs Before Definitization.
    …Contracting Officer not to constitute allowable costs or (2) adjusted for overpayments or underpayments made on preceding invoices or vouchers. (End of clause)
  • FAR 52.230-6 Administration of Cost Accounting Standards.
    …racts. (B) Flexibly-priced contracts and subcontracts. (iii) The total overpayments and underpayments made by the Government during the period of noncompliance. (4) When requested by the CFAO, identify all CAS-covered contracts and subco…
  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    …operly payable and shall also be subject to reduction for overpayments or to increase for underpayments. Upon receipt and approval of the voucher designated by the Contractor as the “completion voucher” and supporting documentation, and upo…
  • DFARS 222.406-9 Withholding from or suspension of contract payments.
    …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…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.