Imputing Conduct (29 CFR 98.630)

Office of the Secretary of Labor

§ 98.630

A suspending official . . .

A debarring official . . .

(b) Must— ....................................................................................
(1) Have adequate evidence that there may be a cause for debarment of a person; and.
(2) Conclude that immediate action is necessary to protect the
Federal interest.
(c) Usually imposes the suspension first, and then promptly notifies the suspended person, giving the person an opportunity
to contest the suspension and have it lifted.

Must conclude, based on a preponderance of the evidence,
that the person has engaged in conduct that warrants debarment.

§ 98.610 What procedures does the Department of Labor use in suspension and debarment actions?
In deciding whether to suspend or
debar you, we handle the actions as informally as practicable, consistent
with principles of fundamental fairness.
(a) For suspension actions, we use
the procedures in this subpart and subpart G of this part.
(b) For debarment actions, we use the
procedures in this subpart and subpart
H of this part.
§ 98.615 How does the Department of
Labor notify a person of a suspension or debarment action?
(a) The suspending or debarring official sends a written notice to the last
known street address, facsimile number, or e-mail address of—
(1) You or your identified counsel; or
(2) Your agent for service of process,
or any of your partners, officers, directors, owners, or joint venturers.
(b) The notice is effective if sent to
any of these persons.

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§ 98.620 Do Federal agencies coordinate suspension and debarment actions?
Yes, when more than one Federal
agency has an interest in a suspension
or debarment, the agencies may consider designating one agency as the
lead agency for making the decision.
Agencies are encouraged to establish
methods and procedures for coordinating their suspension and debarment
actions.
§ 98.625 What is the scope of a suspension or debarment?
If you are suspended or debarred, the
suspension or debarment is effective as
follows:
(a) Your suspension or debarment
constitutes suspension or debarment of

Imposes debarment after giving the respondent notice of the
action and an opportunity to contest the proposed debarment.

all of your divisions and other organizational elements from all covered
transactions, unless the suspension or
debarment decision is limited—
(1) By its terms to one or more specifically identified individuals, divisions, or other organizational elements; or
(2) To specific types of transactions.
(b) Any affiliate of a participant may
be included in a suspension or debarment action if the suspending or debarring official—
(1) Officially names the affiliate in
the notice; and
(2) Gives the affiliate an opportunity
to contest the action.
§ 98.630 May the Department of Labor
impute conduct of one person to another?
For purposes of actions taken under
this rule, we may impute conduct as
follows:
(a) Conduct imputed from an individual
to an organization. We may impute the
fraudulent, criminal, or other improper
conduct of any officer, director, shareholder, partner, employee, or other individual associated with an organization, to that organization when the improper conduct occurred in connection
with the individual’s performance of
duties for or on behalf of that organization, or with the organization’s knowledge, approval or acquiescence. The organization’s acceptance of the benefits
derived from the conduct is evidence of
knowledge, approval or acquiescence.
(b) Conduct imputed from an organization to an individual, or between individuals. We may impute the fraudulent,
criminal, or other improper conduct of
any organization to an individual, or
from one individual to another individual, if the individual to whom the
improper conduct is imputed either
participated in, had knowledge of, or

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§ 98.635

29 CFR Subtitle A (7–1–09 Edition)

reason to know of the improper conduct.
(c) Conduct imputed from one organization to another organization. We may
impute the fraudulent, criminal, or
other improper conduct of one organization to another organization when
the improper conduct occurred in connection with a partnership, joint venture, joint application, association or
similar arrangement, or when the organization to whom the improper conduct
is imputed has the power to direct,
manage, control or influence the activities of the organization responsible
for the improper conduct. Acceptance
of the benefits derived from the conduct is evidence of knowledge, approval
or acquiescence.
§ 98.635 May the Department of Labor
settle a debarment or suspension
action?
Yes, we may settle a debarment or
suspension action at any time if it is in
the best interest of the Federal Government.
§ 98.640 May a settlement include a
voluntary exclusion?
Yes, if we enter into a settlement
with you in which you agree to be excluded, it is called a voluntary exclusion and has governmentwide effect.
§ 98.645 Do other Federal agencies
know if the Department of Labor
agrees to a voluntary exclusion?
(a) Yes, we enter information regarding a voluntary exclusion into the
EPLS.
(b) Also, any agency or person may
contact us to find out the details of a
voluntary exclusion.

Subpart G—Suspension

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§ 98.700 When may the suspending official issue a suspension?
Suspension is a serious action. Using
the procedures of this subpart and subpart F of this part, the suspending official may impose suspension only when
that official determines that—
(a) There exists an indictment for, or
other adequate evidence to suspect, an
offense listed under § 98.800(a), or

(b) There exists adequate evidence to
suspect any other cause for debarment
listed under § 98.800(b) through (d); and
(c) Immediate action is necessary to
protect the public interest.
§ 98.705 What does the suspending official consider in issuing a suspension?
(a) In determining the adequacy of
the evidence to support the suspension,
the suspending official considers how
much information is available, how
credible it is given the circumstances,
whether or not important allegations
are corroborated, and what inferences
can reasonably be drawn as a result.
During this assessment, the suspending
official may examine the basic documents, including grants, cooperative
agreements, loan authorizations, contracts, and other relevant documents.
(b) An indictment, conviction, civil
judgment, or other official findings by
Federal, State, or local bodies that determine factual and/or legal matters,
constitutes adequate evidence for purposes of suspension actions.
(c) In deciding whether immediate
action is needed to protect the public
interest, the suspending official has
wide discretion. For example, the suspending official may infer the necessity for immediate action to protect
the public interest either from the nature of the circumstances giving rise to
a cause for suspension or from potential business relationships or involvement with a program of the Federal
Government.
§ 98.710 When does a suspension take
effect?
A suspension is effective when the
suspending official signs the decision
to suspend.
§ 98.715 What notice does the suspending official give me if I am suspended?
After deciding to suspend you, the
suspending official promptly sends you
a Notice of Suspension advising you—
(a) That you have been suspended;
(b) That your suspension is based
on—
(1) An indictment;
(2) A conviction;
(3) Other adequate evidence that you
have committed irregularities which

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