Prompt Payment Act re: contractor salary

[kcv]

Washington, DC

I am employed by a U.S. Government agency as a contractor. I recently discovered that my agency has been underpaying me (according to the hourly rate set in my contract) for 2.5 years. The agency acknowledges this and will pay me what's owed. However, they claim they do not have to make interest payments (as specified under the Prompt Payment Act) because it was my responsibility to monitor my earnings statement. Is this correct? Are they not responsible for their mistake simply because I did not see it on time?

 

[quincy]

You can get answers to your questions on the Prompt Payment Act on the government website at www.fms.treasury/prompt/regulations.html or http://fms.treas.gov/prompt/questions.html#late.

There is a need in some circumstances, apparently, to make a written request for payment of a late payment interest penalty within 40 days of when the principal amount is paid, and to include with this written request a copy of the original invoice in which the payment was made late. The agency you worked for, then, may be right about not owing you interest on the late payments made (although they still may be responsible for some) - read over the website, though, to see if this applies to your situation.

 

[kcv]

Thanks very much. The websites were quite helpful.

 

[quincy]

You're welcome. I am glad the websites were helpful.