Except as provided under paragraph (2) of this subsection, a contractor under a public work contract is liable to the public body for liquidated damages of $20 for each laborer or other employee for each day for which: the laborer is paid less than the prevailing wage rate of a mechanic while performing a task required to be performed by a mechanic or mechanic’s apprentice; or the employee is paid less than the prevailing wage rate. A contractor under a public work contract that knew or reasonably should have known of the contractor’s obligation to pay the prevailing wage rate and that deliberately failed or refused to pay the prevailing wage rate is liable to the public body for liquidated damages of $250 for each laborer or other employee for each day for which: the laborer is paid less than the prevailing wage rate of a mechanic while the laborer is performing a task required to be performed by a mechanic or mechanic’s apprentice; or the employee is paid less than the prevailing wage rate. If a contractor or subcontractor pays an employee less than the amount the employee is entitled to receive for the work performed, the contractor shall make restitution to the employee. The contractor and the subcontractor shall be jointly and severally liable for restitution to the subcontractor’s employees.