; or (C) if the violation is widespread, 1 percent of the net profits of the contractor or subcontractor for the year in which the contractor or subcontractor had the highest net profits out of all years in which the contractor or subcontractor was in such violation. (2) Repeated, or willful, and widespread violations If the violation of subsection (a), (b), or (c) of section 3144a of this title is repeated or willful, as described in paragraph (1)(B), and is widespread, as described in paragraph (1)(C), the higher amount of the amounts described in such paragraphs shall apply. (3) Payment of damages Any penalty assessed under paragraph (1) for a violation of subsection (a), (b), or (c) of section 3144a of this title shall be paid from an account of the contractor or subcontractor in such violation for the violation and not paid, or reimbursed, by any insurance plan that would indemnify the contractor or subcontractor from violations of such subsection. If a contractor or subcontractor receives a payment from an insurance plan to indemnify the contractor or subcontractor from a violation of such subsection, the contractor or subcontractor shall transfer the payment to the Secretary, in addition to the amount to be paid from the account of the contractor or subcontractor for the penalty. (b) Misclassification enforcement through reclassification orders (1) Civil penalties A contractor or subcontractor that violates a reclassification order issued under section 3144a(d)(1) shall be subject to a civil penalty of not less than $5,000 per day, with each day constituting a separate offense. (2) Additional damages In any case in which a contractor or subcontractor contests a reclassification order issued under paragraph (1) of section 3144a(d) in a review under paragraph (3) of such section, a hearing under paragraph (4)(A) of such section, and a subsequent judicial proceeding under paragraph (4)(B) of such section, and the court in such proceeding rules in favor of the Secretary— (A) the court shall determine if,