IC 22-5-1.7-13: Termination of contract for services or public works contract; exception; contractor liable

Sec. 13. (a) Except as provided in subsection (b), if the contractor fails to remedy the violation within the thirty (30) day period provided under section 12(b) of this chapter, the following apply:

(1) The state agency or political subdivision shall terminate the public contract for services with the contractor for breach of the public contract for services.

(2) The public agency shall terminate the contract for a public works project with the contractor for breach of the contract for the public works project.

(b) If a contractor employs or contracts with an unauthorized alien, the following apply:

(1) If the state agency or political subdivision (whichever the contractor has a public contract for services with) determines that terminating the public contract for services under subsection (a) would be detrimental to the public interest or public property, the state agency or political subdivision may allow the public contract for services to remain in effect until the state agency or political subdivision procures a new contractor.

(2) If the public agency determines that terminating the contract for a public works project under subsection (a) would be detrimental to the public interest or public property, the public agency may allow the contract for the public works project to remain in effect until the public agency procures a new contractor.

(c) If a state agency or political subdivision terminates a public contract for services under subsection (a), the contractor is liable to the state agency or political subdivision for actual damages.

(d) If a public agency terminates a contract for a public works project under subsection (a), the contractor is liable to the public agency for actual damages.