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When Are DOL Back Wage Withholding Actions Arbitrary and Capricious?

Abrahams Wolf-Rodda – To protect the rights of covered workers under the Service Contract Act (“SCA”) and the Contract Work Hours and Safety Standards Act (“CWHSSA”), the US Department of Labor (“DOL”) regulations provide for seizure of the proceeds of the Government contract when compliance is in question. Similar processes are followed for the Davis-Bacon Act. This blog focuses on the SCA and the DOL enforcement action known as “withholding.” It directs the Contracting Officer to withhold funds otherwise due the contractor or pay them to DOL.

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