FAR Proposed Rule Requires Disclosure of Labor Law Violations
The FAR Council has issued a proposed rule and guidance May 28th to require contractors to disclose violations of labor law when COs are considering responsibility determinations. The proposed rule would create FAR 22.20, Fair Pay and Safe Workplaces and follows a July 2014 Executive Order No. 13673 that required May - June 2015 GCA REPORT 2 prospective contractors to disclose violations of labor laws in the last three years and for COs to consider the disclosure when making responsibility determinations. The proposed rule and Labor Dept. guidance will require disclosure of administrative merits determinations, civil judgments or arbitral award or decisions for violation of 14 listed labor laws and executive orders. The rule will apply to contracts worth $500,000 or more, excluding contracts for commercial off-the-shelf items and would make disclosure before a CO responsibility determination is made and twice yearly during contract performance. The proposed rule has a 60 day comment period to determine state laws that are equivalent to the federal laws listed. The prior EO and current proposal are generating criticism from various industry groups asserting they are “absurdly cumbersome and it “robs” contractors of due diligence where allegations are treated as facts and attempts to rewrite legislation through regulations. Other comments are saying that adding additional penalties to ones already prescribed is tantamount to “double jeopardy” and adding them for contractors is a “double standard” (Fed. Reg. 30575)
