FAR 22.1—Subpart 22.1

Labor relations.

Federal and State labor requirements.

Overtime.

Scope of subpart.

FAR 22.1000 is the scope statement for FAR Subpart 22.10, which tells readers what legal authorities and implementing guidance this subpart covers. It states that the subpart prescribes policies and procedures for carrying out the Service Contract Labor Standards in 41 U.S.C. chapter 67 (formerly the Service Contract Act), the applicable provisions of the Fair Labor Standards Act of 1938 as amended, and the related Department of Labor regulations and instructions found in 29 CFR parts 4, 6, 8, and 1925. In practical terms, this section does not itself impose wage or labor requirements; instead, it identifies the body of law and regulations that contracting officers and contractors must follow when service contracts are subject to labor standards coverage. It signals that the FAR subpart is an implementation framework tying federal procurement actions to wage determinations, labor compliance, and Department of Labor oversight. For contractors, it means service contracts may carry mandatory labor clauses and wage obligations beyond ordinary contract terms. For contracting officers, it means they must apply the subpart in conjunction with the statute and DOL rules when planning, awarding, and administering covered service contracts.

Definitions.

FAR 22.1001 defines the core terms used in the Service Contract Labor Standards subpart, so readers can apply the rest of the rules correctly. It covers five specific topics: who counts as a "contractor" for purposes of the statute, what qualifies as a "multiple year contract," the geographic meaning of "United States," what the Department of Labor’s "Wage and Hour Division" is, and what a "wage determination" means. These definitions matter because they determine the scope of coverage, where the labor standards apply, and which workers and contracts are subject to minimum wage and fringe benefit requirements. In practice, the definitions control whether prime contractors and subcontractors must comply, whether a contract is treated as a multiple-year arrangement, and which locality-based wage rates or fringe benefits must be incorporated into the contract. They also clarify that the Service Contract Labor Standards reach certain offshore areas and exclude some foreign locations and U.S. bases or possessions inside foreign countries. Understanding these terms is essential for both contracting officers and contractors because a mistake at the definition stage can lead to incorrect wage determinations, missing flowdown obligations, or noncompliance with labor standards.

Statutory and Executive order requirements.

Applicability.

Department of Labor responsibilities and regulations.

FAR 22.1004 explains who has the legal authority to administer and enforce the Service Contract Labor Standards (SCLS) statute and points readers to the Department of Labor’s implementing regulations. It states that the Secretary of Labor is authorized and directed to enforce the statute, issue rules and regulations, issue orders, hold hearings, make decisions, and take other appropriate action. The section also identifies the main DOL regulatory areas that govern SCLS compliance: service contract labor standards provisions and procedures, wage determination procedures, application of the statute through rulings and interpretations, compensation standards, enforcement, safe and sanitary working conditions, rules of practice for administrative proceedings, and practice before the Administrative Review Board. In practice, this section matters because it tells contracting officers and contractors that SCLS compliance is not governed by FAR alone; the controlling details come from DOL regulations and DOL enforcement processes. It is the roadmap to where wage rates, fringe benefits, worker protections, enforcement actions, and appeals are handled under the statute.

[Reserved]

Solicitation provisions and contract clauses.

FAR 22.1006 tells contracting officers which Service Contract Labor Standards (SCLS) provisions and clauses must be included in solicitations and contracts, and when certain SCLS-related clauses must be omitted because an exemption applies. It covers the core SCLS clause at 52.222-41, the Statement of Equivalent Rates for Federal Hires at 52.222-42, the price-adjustment clauses at 52.222-43 and 52.222-44, and the exemption certification/requirements clauses at 52.222-48, 52.222-51, 52.222-52, and 52.222-53, including the comparable provisions in FAR 52.204-8 and 52.212-3. In practice, this section is the roadmap for building the right labor-standards clause package based on contract type, dollar threshold, whether the SCLS statute applies, and whether the solicitation may qualify for an exemption. It also ensures that price adjustments for wage and fringe benefit changes are handled correctly when contracts span multiple years, options, or wage-determination updates. For contractors, this section matters because it determines whether wage determinations, labor-rate disclosures, exemption certifications, and price-adjustment rights and obligations will apply. For contracting officers, it is a compliance checkpoint: inserting the wrong clause, or failing to remove a clause when an exemption is properly established, can create pricing, administration, and enforcement problems later.

Requirement to obtain wage determinations.

FAR 22.1007 tells the contracting officer when to obtain prevailing wage determinations under the Service Contract Labor Standards for service contracts. It covers three main situations: new solicitations and contracts over the $2,500 threshold, contract modifications that push a contract above $2,500 and either extend performance or significantly change the labor requirements, and multiple-year contracts over $2,500 at specified anniversary dates depending on whether the contract is funded by annual appropriations. The rule exists to ensure the contract includes the correct wage and fringe benefit requirements for covered service employees based on current Department of Labor wage determinations. In practice, this means the contracting officer must check wage determination timing at award, before certain modifications, and at recurring intervals for multi-year contracts so the solicitation or contract reflects the applicable labor standards. The section is important because failing to obtain the right wage determination can lead to noncompliant pricing, contract administration problems, and disputes over wage obligations.

Procedures for obtaining wage determinations.

Place of performance unknown.

Notification to interested parties under collective bargaining agreements.

FAR 22.1010 tells the contracting officer how to notify interested parties when a service contract is covered by a collective bargaining agreement. It addresses four main topics: determining whether the incumbent prime contractor’s or subcontractors’ service employees are represented by a collective bargaining agent, giving written notice to the incumbent contractor and the union or other bargaining representative, identifying the specific type of upcoming action that triggers notice (a successor contract, a contract modification, or a multiple-year contract anniversary date), and timing and recordkeeping for that notice. The purpose is to protect the wage and fringe benefit rights of service employees and to support the Service Contract Labor Standards rules that depend on timely notice to the parties. In practice, this section matters because the timing of notice can affect whether certain wage determinations and collective bargaining agreement terms are recognized under FAR 22.1012-2(a) and (b). Contracting officers must therefore identify union coverage early, send notice at least 30 days before the relevant acquisition date, and keep proof in the contract file. Contractors should expect the government to notify both them and the bargaining agent when a covered follow-on action is coming.

[Reserved]

Applicability of revisions to wage determinations.

Review of wage determination.

FAR 22.1013 tells contracting officers how to review a wage determination before using it in a solicitation or contract, and when to escalate concerns to the agency labor advisor. It covers two different situations: wage determinations based on an incumbent collective bargaining agreement and wage determinations based on something other than an incumbent collective bargaining agreement. For incumbent CBA-based determinations, the section focuses on whether wages, fringe benefits, or periodic increases differ substantially from local prevailing rates, and whether the agreement may not have been reached through arm’s-length bargaining. For non-CBA-based determinations, it requires the contracting officer to check whether the determination matches prevailing local wages and fringe benefits and whether it contains significant errors or omissions. The practical purpose is to catch questionable labor standards data early, before it is incorporated into a procurement, so the Government does not rely on an inaccurate or potentially improper wage determination. In practice, this section is a trigger for review and escalation, not a final decision rule: the contracting officer must involve the agency labor advisor whenever the listed concerns appear.

Delay over 60 days in bid opening or commencement of work.

FAR 22.1014 addresses what happens when a wage determination was obtained through the e98 process but the procurement does not move forward on time. It covers two delay scenarios: delayed bid opening in sealed bidding and delayed commencement of work under a negotiated contract. If either event is delayed for more than 60 days from the date shown on the previously submitted e98, the contracting officer must submit a new e98, regardless of the reason for the delay. The section also explains that any revised wage determination returned to the contracting agency through that new communication becomes the applicable wage determination for the acquisition, replacing the earlier one. In practice, this rule ensures the government uses the correct prevailing wage information when a solicitation or award slips beyond the original timing assumptions, and it ties directly to the timing rules in FAR 22.1012-1(b) and (c).

Discovery of errors by the Department of Labor.

FAR 22.1015 addresses what happens when the Department of Labor (DOL) later discovers that a contracting officer incorrectly decided the Service Contract Labor Standards (SCLS) statute did not apply to an acquisition, or failed to include the required wage determination in a covered contract. It explains the corrective process both before and after award, including the contracting officer’s duty to add the SCLS clause at FAR 52.222-41 and any applicable wage determination within 30 days after DOL notification. The section also covers the special rule for contracts subject to 41 U.S.C. 6707(c), under which the Administrator may require retroactive application of the wage determination. Finally, it requires an equitable adjustment to the contract price when incorporation of the clause or wage determination changes the contractor’s cost of performance. In practice, this provision protects service employees, ensures statutory wage protections are applied even after an initial mistake, and gives agencies a mechanism to correct solicitation or contract errors without ignoring the cost consequences.

Statement of equivalent rates for Federal hires.

FAR 22.1016 explains how to prepare the "Statement of Equivalent Rates for Federal Hires" required by the clause at FAR 52.222-42. This statement tells bidders or offerors what wage rates and fringe benefits the contracting activity would pay to comparable service employees if federal pay systems applied, specifically under the General Schedule for white-collar employees and the Wage Board system for blue-collar employees. The section also gives the method for computing those equivalent rates, including how to derive hourly rates for blue-collar workers and white-collar workers, and it notes that local civilian personnel offices can help obtain the needed grade and salary information. In practice, this requirement gives contractors a benchmark for understanding the government’s internal labor costs for comparable work, which supports transparency and helps frame wage determinations in service contracts subject to the Service Contract Labor Standards. It does not set the contractor’s required wages by itself, but it is an important informational statement that must be accurate and based on the proper federal pay references.

[Reserved]

Notification to contractors and employees.

FAR 22.1018 tells the contracting officer how to make sure service employees are properly notified about the minimum wages and fringe benefits required under the Service Contract Labor Standards (SCLS) statute. It covers three related notice duties: informing the contractor of the labor standards requirements and the contractor’s responsibilities after award, providing Department of Labor Publication WH-1313 for posting at the worksite before performance begins, and attaching any applicable wage determination to that notice. In practice, this section is about making the SCLS notice process work at the start of contract performance so employees know what compensation they are entitled to and contractors understand their compliance obligations. It also ties directly to the notice requirement in the SCLS clause at FAR 52.222-41, meaning the contracting officer’s actions help satisfy the contract’s employee-notification requirements. The section is important because failure to provide the required notice can lead to confusion, wage-and-fringe-benefit compliance problems, and potential labor standards violations.

Additional classes of service employees.

FAR 22.1019 explains how to handle service employee job classes that are missing from a wage determination under the Service Contract Labor Standards clause at 52.222-41. It covers the conformance process for adding an unlisted class, the requirement that the contractor classify the work using a reasonable relationship to listed classes, and the need to submit SF 1444 before the unlisted employees perform contract work. It also describes the contracting officer’s duty to review the proposed classification and rate, forward the package to the Wage and Hour Division with the employees’ or their representative’s views and the agency recommendation, and wait for the Division’s approval, modification, disapproval, or final determination. The section further addresses special limits on conforming lower levels within listed job families, prohibits conforming trainee classifications, explains when helpers in skilled maintenance trades may or may not be conformed, and bars using conformance to artificially split or subdivide listed classifications. Finally, it confirms that subminimum rates for apprentices, student learners, and disabled workers are allowed only as provided in the clause. In practice, this section ensures workers are paid properly for work not already covered by the wage determination, while preventing misuse of conformance to evade prevailing wage obligations.

Seniority lists.

FAR 22.1020 addresses seniority lists for service employees when work is performed at a Federal facility and employees may be hired or retained by a successor contractor. It requires the incumbent prime contractor to prepare and certify a list of all service employees on the contractor’s or subcontractor’s payroll during the last month of the contract, including each employee’s anniversary date of employment, and to submit that list to the contracting officer no later than 10 days before contract completion. The rule also requires the contracting officer, at the start of the successor contract, to give the list to the successor contractor. The purpose is to preserve accurate service history so the successor can determine eligibility for vacation or other fringe benefits that depend on length of service, including service with predecessor contractors when the applicable wage determination requires that credit. In practice, this section helps prevent loss of earned benefits during contract transitions, supports orderly turnover, and reduces disputes over employee seniority and fringe benefit entitlement.

Request for hearing.

FAR 22.1021 explains how a contracting agency or other interested party can ask the Department of Labor for a hearing on certain wage-related issues under FAR 22.1013(a). It covers two specific hearing types: a substantial variance hearing, where the requester must show that the wage rates in the wage determination differ substantially from local rates for similar services, and an arm’s length hearing, where the requester argues that wages and fringe benefits in a collective bargaining agreement were not reached through genuine arm’s-length negotiations. The section also specifies what information must be included in each request, including the wage determination number, agency name, contract description, procurement status and dates, the requester’s detailed case, and the names and addresses of interested parties. It further sets a strict timing rule for when hearing requests will be considered, with different deadlines for sealed bid contracts versus negotiated contracts and option periods, unless extraordinary circumstances exist. In practice, this section matters because a hearing request can affect whether wage determinations are revised or challenged before award or performance begins, which can directly affect pricing, competition, labor costs, and contract administration.

Withholding of contract payments.

FAR 22.1022 explains how the Government protects workers and recovers money when a contractor violates the Service Contract Labor Standards clause at FAR 52.222-41. It covers the contractor’s liability for deductions, rebates, refunds, and underpayments, including complete nonpayment of required compensation, and it authorizes the contracting officer to withhold contract payments to cover those amounts. It also allows withholding not only from the affected contract but from other prime contracts with the same contractor, whether or not those other contracts are themselves subject to Service Contract Labor Standards. The section further explains that withheld money must be placed in a deposit fund, then transferred to the Department of Labor for payment to underpaid employees under the direction of the Secretary of Labor, an authorized representative, an Administrative Law Judge, or the Administrative Review Board. Finally, it notes DOL’s blanket approval to forward withheld funds while an investigation or administrative proceeding is still pending when that is the last step needed to close out the contract. In practice, this section is a key enforcement and worker-remedy mechanism that helps ensure wage compliance and gives agencies a clear process for securing funds before they disappear.

Termination for default.

FAR 22.1023 is a short but important enforcement provision under the Service Contract Labor Standards (SCLS) framework. It explains that a contractor’s failure to comply with the requirements of the SCLS-related contract clauses may be grounds for termination for default, and it points readers to paragraph (k) of the clause at 52.222-41, Service Contract Labor Standards, for the operative contract language. In practice, this means SCLS compliance is not just a wage-and-fringe-benefit issue; it can become a contract performance issue with the most serious remedy available to the Government. The section matters because it ties labor standards compliance directly to contract administration, giving contracting officers a basis to treat certain violations as material breaches rather than mere administrative errors. It also signals to contractors that failures involving wage determinations, fringe benefits, recordkeeping, or other clause requirements can jeopardize continued performance. For agencies, it reinforces the need to monitor compliance and document violations carefully before pursuing default remedies.

Cooperation with the Department of Labor.

FAR 22.1024 requires contracting officers and agencies to actively cooperate with the Department of Labor (DOL) when DOL investigates possible wage and hour issues affecting service contracts. It covers cooperation in the examination of records, interviews with service employees, and other investigative steps, as well as the agency’s duty to provide available information about contractors, subcontractors, their contracts, and the nature of the contracted services when requested by the Wage and Hour Administrator or a designee. The section also requires the contracting officer to promptly refer apparent violations and complaints in writing to the appropriate DOL regional office. A key protection in this provision is confidentiality: employee complaints may not be disclosed to the employer. In practice, this section ensures DOL has timely access to information needed to enforce labor standards, while also preserving the integrity of employee complaints and preventing premature disclosure that could undermine investigations or expose complainants.

Ineligibility of violators.

FAR 22.1025 addresses the consequences of violating the Service Contract Labor Standards statute and how those violations affect future federal contracting eligibility. It explains that violators will have an active exclusion record in the System for Award Management (SAM), that agencies may not award a Government contract to a listed violator without the Secretary of Labor’s approval, and that the bar also extends to firms, corporations, partnerships, or associations in which the violator has a substantial interest. The section further makes clear that this ineligibility is not limited to prime contracts; it also applies to subcontracts. In practice, this provision protects the Government from doing business with parties that have failed to comply with wage and labor requirements under the Service Contract Labor Standards statute and gives contracting officials a clear screening and award prohibition tied to labor-law enforcement.

Disputes concerning labor standards.

FAR 22.1026 is a narrow but important rule about where to resolve disputes involving labor standards under a service contract. It says that when a disagreement concerns the labor standards requirements of the contract, the dispute must be handled under paragraph (t) of the Service Contract Labor Standards clause at 52.222-41, not under the general Disputes clause at 52.233-1. In practice, this means issues tied to wage determinations, fringe benefits, labor classifications, and other labor standards matters follow the special dispute process built into the labor standards clause rather than the contract’s ordinary claims/disputes procedure. The section exists to keep labor standards questions in the specialized framework Congress and the FAR established for service contracts, where the Department of Labor and the contracting officer each have defined roles. For contractors, this affects how and where to raise a challenge and what procedures apply. For contracting officers, it is a reminder not to route labor standards disputes through the standard disputes clause when the contract’s labor standards clause controls.

Applicability.

FAR 22.1101 explains the basic applicability of the Service Contract Act of 1965, now codified at 41 U.S.C. chapter 67, also called the Service Contract Labor Standards. This section identifies the law’s core purpose: to require Government service contractors to pay covered service employees fair wages and fringe benefits, while recognizing that not every worker on a service contract is covered. It specifically addresses the Act’s coverage of blue-collar service workers and certain white-collar service workers, and it also states an important exclusion for bona fide executive, administrative, and professional employees. In practice, this section is the starting point for deciding whether a service contract is subject to SCA wage determinations and labor standards requirements, and which employees must receive the required minimum compensation. For contracting officers, it is a threshold coverage question that affects solicitation clauses, wage determinations, and contract administration. For contractors, it is a compliance checkpoint that determines how labor categories are classified, priced, and paid.

Definition.

FAR 22.1102 defines the term “professional employee” for use in this subpart, and it does so by tying the FAR definition to the Department of Labor’s exemption standard in 29 CFR 541. The section explains that a professional employee is someone who meets the regulatory definition of an employee employed in a bona fide professional capacity, meaning the person has advanced knowledge in a recognized profession acquired through prolonged study. It also gives examples of covered professions, including accountancy, actuarial computation, architecture, dentistry, engineering, law, medicine, nursing, pharmacy, the sciences, and teaching. The section further limits the term by requiring that the individual not only belong to a recognized profession, but also actually spend the work time performing professional duties. In practice, this definition matters because it helps contracting officers and contractors identify which labor categories are truly “professional” for purposes of the subpart, and it prevents misclassification of workers whose titles sound professional but whose actual duties are not. It is a threshold definition that affects how labor requirements are applied and how contract labor categories are evaluated.

Policy, procedures, and solicitation provision.

FAR 22.1103 implements the policy that professional employees on covered federal contracts must be compensated fairly and properly. It tells contracting officers when to include the solicitation provision at 52.222-46, Evaluation of Compensation for Professional Employees, and explains the threshold and scope for doing so: negotiated contracts expected to exceed $900,000 that will require meaningful numbers of professional employees. The section also describes what offerors must submit—a total compensation plan covering proposed salaries and fringe benefits for professional employees—and what supporting information should accompany that plan, such as recognized national and regional compensation surveys and studies from public, private, and professional organizations. Finally, it warns that unrealistically low compensation plans may be evaluated adversely in source selection. In practice, this section is meant to help agencies assess whether an offeror’s staffing and pay approach is realistic, sustainable, and likely to support successful performance without underpaying professional staff.

Scope of subpart.

FAR 22.1300 is the scope statement for the veterans’ employment and affirmative action subpart. It explains that this subpart exists to implement several related authorities: the Vietnam Era Veterans’ Readjustment Assistance Act of 1972 (VEVRAA), the Veterans Employment Opportunities Act of 1998, the Jobs for Veterans Act, Executive Order 11701, and the Department of Labor’s implementing regulations at 41 CFR part 60-300 and 61-300. In practical terms, this means the FAR subpart is not creating a standalone contractor program; it is the procurement-side framework for applying veterans’ employment requirements in federal contracting. The section signals that contractors and contracting officers must look beyond the FAR text itself and also follow the Labor Department rules that define covered veterans, affirmative action obligations, reporting, and enforcement procedures. For federal contracting, this scope provision matters because it identifies the legal sources that drive contractor obligations and helps users understand that compliance is tied to both statutory mandates and DOL regulations.

Definitions.

FAR 22.1301 is the definitions section for the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) subpart in FAR Part 22. It tells readers exactly who counts as an active duty wartime or campaign badge veteran, an Armed Forces service medal veteran, a disabled veteran, a protected veteran, a qualified disabled veteran, and a recently separated veteran, and it also defines executive and senior management and the term United States for purposes of the subpart. These definitions matter because they determine which workers are covered by federal contractor nondiscrimination and affirmative action obligations tied to protected veterans. In practice, contractors use these definitions to decide who may be counted in outreach, hiring, self-identification, recordkeeping, and affirmative action analyses, while contracting officers and compliance personnel use them to assess whether contractor policies and reports are using the correct legal categories. The section is foundational: if the wrong definition is applied, a contractor may undercount protected veterans, misstate workforce data, or fail to meet VEVRAA-related obligations. It also clarifies that the geographic term United States includes several territories and possessions, which affects where the subpart applies.

Policy.

FAR 22.1302 states the core policy for federal contractors and subcontractors covered by the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and its implementing regulations. It covers four main employment obligations: posting all employment openings with the appropriate state or local employment service delivery system, except for executive and senior management positions, positions to be filled from within the contractor’s organization, and jobs lasting three days or less; taking affirmative action to employ, advance, and otherwise treat qualified individuals, including qualified disabled veterans, without discrimination based on protected veteran status; conducting outreach and positive recruitment designed to effectively recruit protected veterans; and establishing and applying an annual hiring benchmark for protected veterans at each establishment. It also includes a funding restriction for contracting officers: except for commercial products, commercial services, and contracts at or below the simplified acquisition threshold, the Government may not obligate or expend fiscal-year appropriated funds for personal property and nonpersonal services, including construction, with a contractor that has not submitted the required annual VETS-4212 report for the preceding fiscal year when the contractor was subject to the reporting requirement. In practice, this section links labor compliance to contract eligibility and payment authority, so contractors must maintain veterans’ employment compliance and reporting systems, and contracting officers must verify reporting status before award or funding actions where the rule applies.

Applicability.

FAR 22.1303 explains when the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) requirements apply in federal contracting. It covers three main topics: the contract and subcontract coverage threshold for personal property and nonpersonal services, including construction; a special limitation on the Equal Opportunity for Veterans clause when a State or local government is the contracting party and some of its agencies or subdivisions do not actually perform work under the contract; and the requirement to submit the VETS-4212 Report when a contractor or subcontractor receives an award of $200,000 or more. In practice, this section tells contracting officers and contractors when veteran-employment obligations attach, when they do not, and which entities are excluded from the reporting requirement. It matters because failure to identify applicability correctly can lead to missing required clause flowdowns, incomplete subcontract compliance, and late or missing VETS-4212 submissions. The section also helps distinguish between contract coverage and reporting coverage, which are related but not identical.

Procedures.

FAR 22.1304 explains the procedures a contracting officer may use to verify whether a proposed contractor is current on its VETS-4212 filing obligation. This section covers two verification methods: checking the Department of Labor’s VETS-4212 Database through the Internet using the filing verification function, and contacting VETS-4212 customer support by email for confirmation when the contractor says it has filed but does not appear on the verification file. Its purpose is to give contracting officers a practical way to confirm compliance with the veteran reporting requirement before award, especially when the database record and the contractor’s representation do not match. In practice, this section helps reduce award risk, supports responsibility determinations, and creates a simple process for resolving discrepancies in reported filing status. It is a procedural provision only; it does not itself impose the filing requirement, but it tells the contracting officer how to check compliance when needed.

Waivers.

FAR 22.1305 explains when the government may waive the requirements tied to the veterans equal opportunity clause at 52.222-35, Equal Opportunity for Veterans, and who has authority to do so. It covers two kinds of waivers by the Director, Office of Federal Contract Compliance Programs (OFCCP): waivers for a single contract and waivers for groups or categories of contracts, both only when the waiver is in the national interest, with additional findings required for group/category waivers. It also covers a separate agency-level waiver authority when a contract is essential to national security and compliance would prevent award, along with the requirement to notify the Department of Labor within 30 days. The section further tells contracting officers how to route waiver requests under agency procedures and gives the Deputy Assistant Secretary of Labor authority to withdraw an approved waiver before award when needed to carry out the Act’s purposes. In practice, this section is about rare exceptions to veterans’ equal opportunity requirements, the approval chain for those exceptions, and the timing rules that matter most during acquisition planning and pre-award processing.

Department of Labor notices and reports.

FAR 22.1306 addresses two related Department of Labor compliance items for federal contractors and subcontractors: required equal employment opportunity notices for posting, and the annual veterans’ employment report. In practice, this section tells the contracting officer when to provide the contractor with DOL-prescribed posters or notices for workplace posting, and it tells contractors and subcontractors when they must report protected veterans’ employment data to the Secretary of Labor. The reporting requirement is tied to the clause at FAR 52.222-35, Equal Opportunity for Veterans, and may be waived only when all of that clause’s terms are waived under FAR 22.1305. The report required is the VETS-4212, Federal Contractor Veterans’ Employment Report, which is filed with the Department of Labor. This section matters because it connects contract administration to affirmative action and veterans’ employment compliance, and failure to post required notices or file the annual report can create audit findings, compliance issues, and potential contract administration problems.

Collective bargaining agreements.

FAR 22.1307 addresses what a contracting officer must do when performance under the veteran equal opportunity clause at 52.222-35 may require changes to an existing collective bargaining agreement (CBA). Its purpose is to protect the Department of Labor’s role in handling labor-relations issues while ensuring affected unions are notified and given a chance to present their views. In practice, this section is a narrow communication rule: the contracting officer must advise the affected labor unions that the Department of Labor will provide an appropriate opportunity for them to be heard, but the contracting officer and anyone acting for the contracting officer must not discuss any aspect of the CBA with the contractor or with any labor representative. The section therefore covers notice to unions, the Department of Labor’s role in receiving union views, and a strict prohibition on bargaining or substantive CBA discussions by the contracting officer. For contractors and contracting officers, the practical significance is that labor-relations questions tied to veteran equal opportunity compliance must be routed carefully and not handled through informal negotiation with the procurement office.

Complaint procedures.

FAR 22.1308 explains how complaints about administration of the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) are handled in the federal contracting process. It covers the required complaint-routing procedures for contracting offices, the acceptable places to send complaints, and the role of the Department of Labor’s Veterans’ Employment and Training Service (VETS) and the Office of Federal Contract Compliance Programs (OFCCP). The section also identifies the Director of OFCCP as the official responsible for investigating complaints. In practice, this means contracting personnel do not investigate these complaints themselves; instead, they must promptly forward them through the prescribed channels so the proper labor compliance office can review them. The rule exists to centralize enforcement, ensure complaints are handled by the correct labor compliance authorities, and provide contractors and workers a clear path for raising concerns about VEVRAA administration.

Actions because of noncompliance.

FAR 22.1309 explains what the contracting officer must do when the Department of Labor (DOL) imposes sanctions on a contractor for violating the veterans’ equal opportunity clause at FAR 52.222-35, Equal Opportunity for Veterans. The section covers the trigger for action—notification by the appropriate agency official—the contracting officer’s duty to act as soon as possible, and the types of sanctions that may be imposed under the DOL enforcement scheme: withholding progress payments, terminating or suspending the contract, and debarment of the contractor. In practice, this provision ensures that DOL enforcement decisions are carried out promptly in the procurement system and that agencies do not continue normal contract administration when a contractor has been found noncompliant with veterans’ employment requirements. It is a coordination rule between labor enforcement and contracting administration, so the contracting officer is not independently deciding whether a violation occurred, but is implementing the sanction once notified. For contractors, the section signals that noncompliance with the veterans’ equal opportunity clause can have immediate and serious contract and eligibility consequences across current and future federal work.

Solicitation provision and contract clauses.

FAR 22.1310 tells contracting officers when to include the veterans’ employment and reporting solicitation provisions and contract clauses. It covers three related items: the Equal Opportunity for Veterans clause at 52.222-35, the Employment Reports on Veterans clause at 52.222-37, and the Compliance with Veterans’ Employment Reporting Requirements provision at 52.222-38. In practice, this section is the trigger point for deciding whether a solicitation and resulting contract must carry veterans’ affirmative action and reporting requirements, based on dollar value, place of performance, waiver status, and whether the acquisition is for commercial products or commercial services. It also links the reporting clause to the equal opportunity clause, so the reporting obligation follows when the equal opportunity clause applies. For contractors, this means checking early whether veterans-related compliance obligations will attach, because they affect proposal preparation, contract administration, and annual reporting. For agencies and contracting officers, it means making the right clause/provision insertions at the solicitation stage and ensuring any waiver or overseas-performance exception is applied correctly.

Scope of subpart.

FAR 22.1400 is the scope statement for the subpart implementing federal affirmative action and nondiscrimination requirements for individuals with disabilities under section 503 of the Rehabilitation Act of 1973, Executive Order 11758, and the Department of Labor’s implementing regulations at 41 CFR part 60-741. It tells readers that the subpart is not creating a standalone policy from scratch; instead, it is the FAR’s vehicle for applying those external legal authorities in federal contracting. The section also establishes an important interpretive rule: when this subpart uses the words “contract” and “contractor,” those terms also include “subcontract” and “subcontractor,” unless the context clearly indicates otherwise. In practice, that means the requirements can flow down beyond prime contracts and affect subcontracting relationships as well. This section matters because it frames the entire subpart’s reach, identifies the legal sources that control, and prevents narrow readings that would exclude subcontractors from coverage. For contracting officers and contractors, it signals that compliance obligations must be understood in light of both the FAR and the underlying labor regulations.

Policy.

FAR 22.1401 states the basic policy for federal contracts and subcontracts covered by the Rehabilitation Act requirements implemented through the FAR. It requires contractors and subcontractors to take affirmative action to employ and advance qualified individuals with disabilities, to avoid discrimination against qualified individuals based on physical or mental disability, to conduct outreach and positive recruitment designed to attract qualified individuals with disabilities, and to compare their workforce utilization of individuals with disabilities against the applicable annual utilization goal set by the Secretary of Labor. In practice, this section is the policy foundation for contractor disability affirmative action obligations: it is not just a nondiscrimination rule, but an active recruitment, advancement, and self-assessment requirement. It applies when a contract or subcontract is subject to the Act, so contractors must know whether the clause and coverage apply to their awards and flow the requirements down as needed. The section matters because it drives how contractors build hiring practices, recruitment strategies, workforce analytics, and compliance documentation for disability inclusion. It also signals that compliance is measured not only by avoiding discrimination, but by taking proactive steps and monitoring results against a government-established utilization benchmark.

Applicability.

FAR 22.1402 explains when the statutory requirements for equal opportunity for workers with disabilities apply in federal contracting and how the implementing clause is used. It covers two main topics: first, the general applicability of Section 503 of the Rehabilitation Act to Government contracts over $20,000 for supplies, services, and construction, subject to any waiver by the Secretary of Labor; and second, a special rule for contracts with State or local governments that limits the clause’s reach to only those agencies, instrumentalities, or subdivisions that actually participate in the contract work. In practice, this section tells contracting officers when to include FAR 52.222-36, Equal Opportunity for Workers with Disabilities, and helps contractors understand when disability nondiscrimination and affirmative action obligations attach. It also prevents overbroad application of the clause to nonparticipating parts of a State or local government entity. The section matters because it defines the threshold for coverage, identifies the controlling clause, and clarifies how the rule operates in multi-entity public contracts.

Waivers.

FAR 22.1403 explains when and how the government may waive the requirements tied to the Equal Opportunity for Workers with Disabilities clause at 52.222-36. It covers two different waiver authorities: a waiver by the Director of the Office of Federal Contract Compliance Programs (OFCCP) when the waiver is in the national interest, and a waiver by the head of an agency when a contract is essential to national security and cannot wait for normal compliance. The section also tells contracting officers how to route waiver requests, and it explains that waivers for a class of contracts can later be withdrawn, with limits on how that withdrawal affects already-awarded contracts and sealed bidding solicitations. In practice, this section matters because it creates narrow exceptions to otherwise applicable disability nondiscrimination requirements, but only under high-level approval and documented justification. Contractors should not assume a waiver exists unless it is expressly granted, and contracting officers must follow agency procedures and timing rules carefully to avoid invalid action or protest risk.

Department of Labor notices.

FAR 22.1404 is a simple but important administrative requirement in the disability nondiscrimination area. It tells the contracting officer to provide the contractor with the appropriate Department of Labor notices that explain the contractor’s obligations and the rights of individuals with disabilities, and it notes that those notices may be obtained from the OFCCP regional office. In practice, this section supports implementation of the disability-related requirements that apply to federal contractors by making sure the contractor receives the official notice language needed to inform employees and applicants. The section is about notice distribution, not the substantive nondiscrimination standards themselves, but it is still significant because proper notice is part of compliance and helps ensure affected individuals know their rights. For contracting officers, it is a procedural step that should be completed at the right time and with the correct notice version. For contractors, it means they may receive a required notice that must be posted, distributed, or otherwise used as directed by the applicable labor requirements.

Collective bargaining agreements.

FAR 22.1405 addresses what a contracting officer must do when performance under the Equal Opportunity for Workers with Disabilities clause at 52.222-36 may require changes to a collective bargaining agreement (CBA). Its purpose is to protect the integrity of the labor relations process while ensuring that disability-related equal opportunity requirements can be implemented without improper government interference. In practice, the section requires the contracting officer to notify affected labor unions that the Department of Labor will provide them an appropriate opportunity to present their views if a CBA revision may be needed. At the same time, it strictly limits government involvement by prohibiting the contracting officer, and anyone acting for the contracting officer, from discussing any aspect of the CBA with either the contractor or any labor representative. This section therefore covers CBA revisions, union notification, Department of Labor involvement, and a clear noninterference rule for government personnel.

Complaint procedures.

FAR 22.1406 explains how complaints about administration of the Act are handled and who must receive them. It covers the contracting office’s duty to forward complaints, the required recipients within the Office of Federal Contract Compliance Programs (OFCCP), and OFCCP’s duty to investigate each complaint and build a complete case record. In practice, this section creates a clear referral path so complaints are not handled informally or left at the contracting office level. It also ensures that complaints are routed to the agency with enforcement authority and investigative responsibility. For contractors and contracting personnel, the section matters because it defines where complaints go, who takes over, and how the administrative record is developed for follow-up action.

Actions because of noncompliance.

FAR 22.1407 explains what the contracting officer must do when the Department of Labor (DOL) imposes sanctions on a contractor for violating the Equal Opportunity for Workers with Disabilities clause at 52.222-36. The section covers the contracting officer’s duty to act promptly after notification by the appropriate agency official, the need to implement DOL-directed sanctions, and the types of sanctions that may be imposed: withholding payments otherwise due, terminating or suspending the contract, or debarring the contractor. In practice, this provision is a compliance-enforcement mechanism that connects labor-law enforcement to contract administration, ensuring that DOL findings are carried out in the procurement system without delay. It matters because it limits contractor noncompliance from continuing unchecked and gives the government tools to protect the integrity of federal contracting and enforce disability nondiscrimination requirements. The section also signals that the contracting officer is not making an independent merits determination here; the officer is implementing sanctions already imposed through the applicable labor enforcement process.

Contract clause.

FAR 22.1408 tells contracting officers when to include the Equal Opportunity for Workers with Disabilities clause, FAR 52.222-36, in solicitations and contracts. It covers the dollar threshold for coverage, the geographic exception for work and recruitment performed entirely outside the listed U.S. jurisdictions, and the waiver process when the Director of OFCCP or an agency head has waived the clause under FAR 22.1403. It also explains what to do when only some, but not all, of the clause’s terms are waived: use the basic clause with Alternate I. In practice, this section is the implementation rule that ensures disability nondiscrimination requirements are flowed into covered federal acquisitions unless a specific regulatory exception applies. For contractors, it signals when the clause will be part of the contract and therefore when compliance obligations attach. For contracting officers, it is a mandatory clause-insertion rule that must be checked during solicitation and award preparation.

Scope.

FAR 22.1500 is a scope provision that tells readers when the requirements in FAR Subpart 22.15 apply. It states that the subpart applies to acquisitions of supplies that exceed the micro-purchase threshold, which means the rules in this subpart are triggered only for supply purchases above that dollar threshold. In practical terms, this section is a gateway provision: it does not itself impose substantive labor, wage, or sourcing requirements, but it determines which acquisitions must be reviewed under the rest of Subpart 22.15. Contracting officers and acquisition personnel use it to decide whether the subpart’s requirements must be considered during planning, solicitation, and award. Contractors should understand it because it signals that certain supply procurements above the micro-purchase threshold may carry additional compliance obligations elsewhere in the subpart. The section is important because scope provisions prevent over-application of regulatory requirements and help agencies apply the FAR consistently and only where intended.

Definitions.

FAR 22.1501 is a definitions section for the subpart on forced or indentured child labor. It defines two core terms: "forced or indentured child labor" and the "List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor." The first definition explains what conduct qualifies as prohibited child labor, including work or service exacted from a person under 18 under threat of penalty or work performed under an enforceable contract. The second definition identifies the Department of Labor’s published list of products, by country of origin, that have a reasonable basis to be believed to have been mined, produced, or manufactured with forced or indentured child labor. In practice, this section matters because it sets the meaning of the terms used elsewhere in the subpart, which drives contractor certification obligations, sourcing reviews, and compliance actions when acquiring covered products. It is the foundation for determining whether a product or supply chain raises forced-labor concerns under federal procurement rules.

Policy.

FAR 22.1502 states the Government’s policy for dealing with products made with forced or indentured child labor. It covers two related topics: first, agencies must take appropriate action to enforce the laws that prohibit the manufacture or importation of covered products, and second, agencies should make every effort to avoid acquiring those products in federal procurement. The section ties procurement policy to the underlying statutes cited in the rule—19 U.S.C. 1307, 29 U.S.C. 201 et seq., and 41 U.S.C. chapter 65—so contracting activity supports broader labor and trade enforcement goals. In practice, this means agencies are expected to use their acquisition tools, oversight, and sourcing decisions to prevent federal dollars from supporting prohibited labor practices. For contractors, the rule signals that products tainted by forced or indentured child labor present serious compliance, supply-chain, and eligibility risks. For contracting officers and program officials, it is a reminder to screen sources, respond to credible concerns, and avoid award or acceptance decisions that would place the Government in the chain of acquisition for such products.

Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor.

FAR 22.1503 explains how contracting officers and offerors handle acquisitions involving end products that appear on the Department of Labor’s List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor. It covers when the contracting officer must check the List, what the List means, the country-of-origin and dollar-value exceptions that remove certain acquisitions from these requirements, the certification offerors must provide for listed end products, how the contracting officer may rely on that certification, when suspected violations must be referred for investigation, and the fact that a proper certification does not eliminate later remedies if forced or indentured child labor is actually discovered. In practice, this section is a screening and certification procedure designed to prevent the Government from unknowingly buying products tied to forced or indentured child labor while still allowing purchases where the FAR’s trade agreement or country-specific exceptions apply. It also creates a clear workflow for solicitation drafting, offeror certification, award decisions, and post-award enforcement. For contractors, the section means they must either confidently certify non-use of forced or indentured child labor for listed products or document a good-faith inquiry and lack of knowledge. For contracting officers, it means checking the List, inserting the right certification language, applying the exceptions correctly, and escalating credible concerns when they arise.

Violations and remedies.

FAR 22.1504 explains what the Government can do when a contractor violates the forced or indentured child labor requirements. It covers four specific violations: submitting a false certification about knowledge of forced or indentured child labor, failing to cooperate with an investigation under the Child Labor Cooperation with Authorities and Remedies clause at 52.222-19, actually using forced or indentured child labor in mining, production, or manufacturing, and furnishing an end product or component that was mined, produced, or manufactured wholly or partly by forced or indentured child labor. It also distinguishes between violations tied to certification/cooperation and the broader substantive violations involving actual use or supply of tainted products. The section then identifies the available remedies: contract termination by the contracting officer, suspension by the suspending and debarring official, and debarment for up to three years. In practice, this section matters because it gives agencies enforcement tools beyond ordinary contract administration and can trigger serious business consequences for contractors, including loss of current contracts and exclusion from future federal work. It also makes clear that suspension and debarment are not automatic for every violation; for the remedies in paragraphs (b)(2) and (b)(3), the contractor must have known of the violation.

Solicitation provision and contract clause.

FAR 22.1505 tells contracting officers when to include the child labor solicitation provision at 52.222-18 and the child labor contract clause at 52.222-19. It applies to acquisitions of supplies/end products that exceed the micro-purchase threshold, and it distinguishes between general supply procurements and commercial products or commercial services acquisitions that use the commercial item representation and certification provision at 52.212-3. The section also requires the contracting officer to identify the specific end products and countries of origin from the government’s List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor, and to remove certain listed items for solicitations estimated to equal or exceed $50,000 when the countries are excluded under FAR 22.1503(b). In practice, this section is about making sure offerors certify knowledge about listed end products and that contracts for supplies include a clause requiring cooperation with authorities and remedies if child labor issues arise. It is a compliance-control provision: it does not itself ban all products, but it ensures the government gets the right certification and contractual protections tied to the identified products and countries. Contracting officers must therefore screen the acquisition type, dollar threshold, commercial-item status, and applicable list entries before issuing the solicitation.

Scope of subpart.

FAR 22.1600 is a scope provision that tells readers what Subpart 22.16 is for: it sets out the policies and procedures used to implement Executive Order 13496, the federal contractor notice requirement related to employee rights under federal labor law. In practical terms, this section does not itself impose the detailed notice, posting, or contract clause requirements; instead, it identifies the legal authority and signals that the rest of the subpart contains the operative rules. For contractors and contracting officers, the significance is that any compliance obligations in this area come from the subpart’s implementing provisions, which are tied to Executive Order 13496 and its implementing regulations. This scope statement helps users understand that the subpart is focused on labor-relations notice requirements for federal contractors and subcontractors, not on general labor standards or wage-and-hour rules. It also frames the subpart as a procedural and policy implementation mechanism, meaning agencies must apply the later sections consistently with the Executive Order and the Department of Labor’s implementing framework. In short, this section tells you what the subpart covers, why it exists, and that the detailed duties appear elsewhere in Subpart 22.16.

Definitions.

FAR 22.1601 is a definitions section for Subpart 22.16, so it does not impose substantive labor requirements by itself; instead, it tells readers how to interpret key terms used throughout the subpart. It specifically defines two terms: “Secretary,” meaning the Secretary of Labor, U.S. Department of Labor, and “United States,” meaning the 50 States, the District of Columbia, Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, and Wake Island. These definitions matter because they control the geographic and administrative scope of the subpart’s requirements and determine which labor official has authority for purposes of the rules that follow. In practice, contracting officers, contractors, and compliance staff must use these definitions when deciding whether a contract, worksite, or employee falls within the subpart’s coverage and when identifying the correct Department of Labor authority for questions, enforcement, or approvals. Because the term “United States” is defined broadly, contractors should not assume the subpart applies only to the 50 States; the listed territories and island locations are included as well.

Policy.

FAR 22.1602 states the basic policy behind the contractor notice requirement created by Executive Order 13496. It explains that covered contractors must post a notice telling employees about their rights under Federal labor laws, and it identifies the specific rights that the required notice must address under the National Labor Relations Act (NLRA), including the right to collective bargaining and the rights to associate, self-organize, and choose representatives for bargaining or other mutual aid or protection. In practice, this section does not itself set out the full posting mechanics or enforcement process; instead, it establishes the legal purpose and content focus for the notice requirement that appears elsewhere in the FAR and implementing rules. For contractors, the section signals that labor-law notice posting is a mandatory compliance obligation tied to Federal contracting. For contracting officers and agencies, it provides the policy basis for including and enforcing the notice requirement in covered contracts.

Exceptions.

FAR 22.1603 explains when the requirements of this subpart do not apply and how formal exemptions can be granted. It covers three automatic exclusions: contracts below the simplified acquisition threshold, subcontracts of $10,000 or less, and contracts or subcontracts for work performed exclusively outside the United States. It also addresses discretionary exemptions issued by the Secretary when applying the Executive Order would impair economical and efficient procurement or when special circumstances make an exemption necessary to serve the national interest. In practice, this section tells contracting personnel and contractors when the subpart’s requirements can be skipped entirely, when a higher-level exemption must be sought, and that exemption requests must follow Department of Labor procedures at 29 CFR 471.3. It is important because it prevents unnecessary application of the subpart to low-dollar or overseas work while preserving a formal process for exceptional cases.

Compliance evaluation and complaint investigations and sanctions for violations.

FAR 22.1604 explains how compliance with the clause at 52.222-40 is monitored and enforced. It covers four main topics: the Secretary’s authority to conduct compliance evaluations and investigate complaints involving contractors and subcontractors; the duty of contracting departments and agencies to cooperate and provide information and assistance; the Secretary’s authority to impose sanctions and other actions when a violation is found, as described in 29 CFR 471.14; and a limitation on the Secretary’s ability to terminate, suspend, debar, or otherwise sanction a contractor when the agency head has filed and maintained a written objection based on mission-essential performance. In practice, this section creates the enforcement framework for the underlying clause, making clear that compliance is not just a contract administration issue but also a labor-policy enforcement matter handled with agency support and Department of Labor procedures. It also protects agency mission needs by allowing an agency head to object to certain sanctions when the contractor’s performance is essential to the agency’s mission, provided the objection is documented and sustained. The section points readers to the detailed enforcement procedures in 29 CFR 471.10 through 471.16, which govern how investigations and sanctions are carried out.

Contract clause.

FAR 22.1605 tells contracting officers when to include the labor-law notice clause at FAR 52.222-40, Notification of Employee Rights under the National Labor Relations Act, in solicitations and contracts. It applies broadly to acquisitions, including commercial products, commercial services, and commercially available off-the-shelf (COTS) items, but it also identifies three important exceptions: acquisitions at or below the simplified acquisition threshold, work performed exclusively outside the United States, and acquisitions covered in their entirety by a Secretary-granted exemption. The section also addresses indefinite-quantity contracts by requiring a forward-looking judgment about whether the value of orders in any calendar year is expected to exceed the simplified acquisition threshold. Finally, it allows the contracting agency to modify the clause when needed to reflect a Secretary-granted exemption. In practice, this section is about making sure the NLRA employee-rights notice is inserted where required, while avoiding over-inclusion in exempt or out-of-scope acquisitions.

Scope of subpart.

FAR 22.1700 is the scope statement for the Federal Acquisition Regulation’s trafficking-in-persons subpart. It explains that this subpart exists to implement 22 U.S.C. chapter 78 and Executive Order 13627, Strengthening Protections Against Trafficking in Persons in Federal Contracts, and therefore serves as the legal and policy bridge between those authorities and day-to-day federal contracting requirements. In practical terms, this section tells readers that the subpart is about preventing human trafficking, forced labor, and related abuses in federal contract performance, and that the detailed rules in the subpart are grounded in both statute and executive order. It does not itself impose the full set of contractor obligations; instead, it identifies the source and purpose of the policy framework that follows. For contracting officers, contractors, and agency personnel, the significance is that any trafficking-related compliance requirements in the subpart are not optional best practices but part of a mandatory federal procurement policy regime. This scope statement also signals that the subpart should be read broadly in light of anti-trafficking enforcement goals, contractor oversight, and contract administration responsibilities.

Applicability.

FAR 22.1701 explains when the subpart on human trafficking-related requirements applies and, more specifically, when the certification and compliance plan requirement in 22.1703(c) is triggered. The section establishes a broad baseline rule that the subpart applies to all acquisitions, meaning contracting personnel must consider the subpart whenever they are planning or administering a federal procurement. It then narrows the certification/compliance plan requirement to only certain portions of a contract or subcontract: those involving supplies other than COTS items to be acquired outside the United States, or services to be performed outside the United States, and only when the estimated value of that portion exceeds $700,000. In practice, this means the applicability analysis is not limited to the total contract value; it requires looking at the specific work or supply portion and where that work or acquisition will occur. The section is important because it determines when contractors must provide a certification and compliance plan, which in turn affects solicitation preparation, proposal review, subcontract flowdown, and contract administration. It helps agencies focus compliance obligations on higher-risk overseas work while avoiding unnecessary requirements for domestic or low-value portions of an acquisition.

Definitions.

FAR 22.1702 is the definitions section for the trafficking-in-persons subpart, and it supplies the meaning of the terms used to enforce the government’s anti-trafficking requirements in federal contracting. It defines who counts as an agent, employee, subcontractor, and subcontract, and it also defines the trafficking-related concepts that drive compliance and enforcement: coercion, commercial sex act, debt bondage, forced labor, involuntary servitude, recruitment fees, severe forms of trafficking in persons, and sex trafficking. It also defines United States for purposes of the subpart. These definitions matter because they determine when conduct is prohibited, whose conduct is attributable to a contractor, what costs may not be charged to workers, and when a contractor may face remedies for trafficking-related violations. In practice, contractors must use these definitions to build recruiting, labor sourcing, subcontract management, and employee oversight controls, while contracting officers and agencies use them to assess compliance, investigate allegations, and enforce contract clauses. The section is especially important for contracts involving labor recruitment, staffing, overseas performance, or complex subcontracting chains, because the definitions reach conduct by agents and lower-tier subcontractors as well as the prime contractor itself.

Policy.

FAR 22.1703 states the Government’s policy against trafficking in persons and explains how that policy must be built into solicitations and contracts. It covers the core prohibitions on severe forms of trafficking, commercial sex acts, forced labor, confiscation or denial of identity and immigration documents, misleading or fraudulent recruitment, use of noncompliant recruiters, charging recruitment fees, failure to provide required return transportation, housing that does not meet host-country standards, and failure to provide required written work documents. It also requires contractors and subcontractors to notify employees of these prohibitions and the consequences for violations. In addition, the section addresses when a compliance plan and certification are required, including the threshold and overseas-performance triggers, and it tells contracting officers to consider trafficking risk and the expected use of non-U.S. citizens when deciding whether to require work documents. Practically, this section is the policy foundation for anti-trafficking clauses and compliance obligations in federal contracts, especially those with overseas performance, labor-intensive work, or vulnerable worker populations.

Violations and remedies.

FAR 22.1704 explains what counts as a trafficking-in-persons violation on a federal contract and what the government must do when it receives credible information or an Inspector General report. It covers four violation triggers: severe forms of trafficking in persons, procuring a commercial sex act, using forced labor, and failing to comply with the mandatory Combating Trafficking in Persons clause at 52.222-50. It also sets out the contracting officer’s immediate notification duties, the option to direct corrective action, the agency’s obligation to route Inspector General findings into an administrative process, and the authority of the suspending and debarring official to use suspension or debarment procedures. Finally, it requires entry of substantiated violations into FAPIIS and directs the contracting officer to consider the remedies in the clause, while weighing mitigating and aggravating factors. In practice, this section is the enforcement backbone for the government’s anti-trafficking policy: it tells agencies how to respond to allegations, how to document confirmed violations, and how to decide whether to impose contract remedies, suspension, or debarment.

Solicitation provision and contract clause.

FAR 22.1705 tells contracting officers when to include the anti-trafficking solicitation provision and contract clause, and when to use the clause’s overseas alternate. It covers two separate requirements: the mandatory insertion of FAR 52.222-50, Combating Trafficking in Persons, in all solicitations and contracts, and the conditional insertion of FAR 52.222-56, Certification Regarding Trafficking in Persons Compliance Plan, in certain solicitations. It also explains when Alternate I to FAR 52.222-50 must be used for work performed outside the United States if the contracting officer has been notified of specific U.S. directives or notices that restrict contractor employees from certain local establishments. In practice, this section ensures trafficking-related compliance terms are built into the solicitation and contract from the start, so offerors know the government’s expectations and contractors are bound to follow them during performance. It is especially important for overseas contracts and higher-value non-COTS acquisitions, where the government wants both a contractual prohibition on trafficking and, in some cases, a pre-award certification that the contractor has a compliance plan.

Scope.

FAR 22.1800 is the scope statement for the E-Verify subpart. It explains that this subpart sets out the policies and procedures requiring certain federal contractors to use the Department of Homeland Security (DHS), U.S. Citizenship and Immigration Services (USCIS) employment eligibility verification program, known as E-Verify, to confirm the work authorization of covered employees. In practice, this section tells contractors and contracting officers that the government is not creating a general immigration compliance program here; it is specifically directing use of E-Verify as the verification tool for employees who fall within the subpart’s coverage. The section matters because it frames when E-Verify requirements apply, what program must be used, and why the government is imposing the requirement in federal contracting. It also signals that the detailed rules on who is covered, when verification must occur, and how the process works are found in the rest of the subpart, not in this scope statement itself.

Definitions.

FAR 22.1801 is the definitions section for the subpart implementing the contractor minimum wage requirements for federal service and construction contracts. It tells readers exactly how to interpret the key terms that control coverage and compliance, including "commercially available off-the-shelf (COTS) item," "employee assigned to the contract," "subcontract," "subcontractor," and "United States." These definitions matter because they determine whether a contract or subcontract is covered, which workers must be paid the required minimum wage, and what kinds of items or labor arrangements fall inside or outside the rule. The section also clarifies that certain bulk cargo is excluded from the COTS definition and explains when an employee is considered directly performing work under a covered contract. In practice, contracting officers use these definitions to decide when to include the clause prescribed at FAR 22.1803, and contractors use them to identify covered employees, subcontract flowdowns, and geographic scope. Because the definitions are precise and sometimes narrower than ordinary business usage, careful reading is essential to avoid underapplying or overapplying the wage requirements.

Policy.

FAR 22.1802 states the Government’s policy on use of E-Verify in federal contracting and explains when contractors must enroll in E-Verify, when they must use it to verify new hires and employees assigned to a contract, and when those requirements flow down to subcontracts. It also addresses special contractor categories that may limit verification to employees assigned to the contract, the option to verify all existing employees hired after the statutory cutoff date, and the exceptions for employees with certain active security clearances or HSPD-12 credentials. The section further covers the limited waiver authority available to the head of the contracting activity, and the consequences if DHS or SSA terminates a contractor’s E-Verify memorandum of understanding, including referral for suspension or debarment and the contractor’s temporary relief from E-Verify duties during that process. In practice, this section is the policy foundation for the E-Verify clause at FAR 52.222-54 and tells contracting officers when to include the clause and tells contractors how broad their verification obligations are. It matters because E-Verify compliance affects award eligibility, subcontract administration, workforce onboarding, and potential suspension or debarment exposure.

Contract clause.

FAR 22.1803 tells contracting officers when they must include the Employment Eligibility Verification clause at FAR 52.222-54 in solicitations and contracts. The section is about the scope of the E-Verify requirement, the dollar threshold, and the specific exceptions that remove a procurement from coverage. It applies to contracts exceeding $150,000 unless the work is performed entirely outside the United States, the period of performance is less than 120 days, or the acquisition is limited to certain exempt items and services tied to commercial products. In practice, this section matters because it determines whether the contractor must use E-Verify to confirm the employment eligibility of certain employees working on the contract. For contractors, the rule affects compliance planning, staffing, and subcontract flowdown considerations; for contracting officers, it is a solicitation-and-award screening requirement that must be applied carefully to avoid improper omission or improper inclusion of the clause.

Scope of subpart.

FAR 22.1900 is the scope statement for the Federal contractor minimum wage subpart. It explains that this subpart contains the policies and procedures used to implement Executive Order 14026, Increasing the Minimum Wage for Federal Contractors, which establishes minimum wage requirements for certain workers performing on covered federal contracts and contract-like instruments. It also points readers to the Department of Labor’s implementing regulations at 29 CFR part 23, which supply the detailed wage administration rules, and it notes that E.O. 14026 superseded E.O. 13658. For historical context, the section also identifies the DOL regulations for the prior executive order at 29 CFR part 10. In practice, this section tells contracting officers and contractors which wage regime applies, where to find the operative rules, and that the current federal contractor minimum wage framework is governed by E.O. 14026 rather than the earlier E.O. 13658 regime.

Definitions.

FAR 22.1901 provides the core definitions used in the paid sick leave requirements tied to Executive Order 14026 in this subpart. It defines the geographic term "United States" for coverage purposes and, most importantly, defines who counts as a "worker" under the rule. The worker definition explains which individuals are covered based on the statutes governing their wages, excludes bona fide executive, administrative, and professional employees, and makes clear that coverage does not depend on how the parties label the relationship. It also expressly includes workers paid under special certificates under the Fair Labor Standards Act and individuals in bona fide apprenticeship or training programs registered with the Department of Labor or a recognized State Apprenticeship Agency. Finally, the section distinguishes work performed "on" a contract from work performed "in connection with" a contract, which is critical for determining the scope of coverage in practice.

Policy.

FAR 22.1902 states the core policy for the Executive Order 14026 minimum wage requirement on covered federal contracts and subcontracts. It explains the federal minimum hourly wage floor for workers performing on, or in connection with, covered contract work, including the initial $15.00 rate and the annual adjustment process beginning January 1, 2023, with public notice issued by the Department of Labor’s Wage and Hour Division. It also addresses how this E.O. minimum wage interacts with other wage requirements, including Federal and State prevailing wage laws, local ordinances, private contracts that set a higher minimum wage, and collective bargaining agreement wage rates. Finally, it identifies special treatment for tipped workers by pointing readers to the Department of Labor regulations that govern how the E.O. minimum wage applies in tipped occupations. In practice, this section tells contractors, subcontractors, and contracting officers that the E.O. wage is a floor, not a ceiling, and that compliance must be checked against other applicable wage obligations and labor arrangements.

Applicability.

FAR 22.1903 explains when the Executive Order 13658 minimum wage subpart applies and when it does not. It covers two main contract categories: contracts subject to the Service Contract Labor Standards statute and contracts subject to the Wage Rate Requirements (Construction) statute, but only to the extent performance occurs in the United States as defined in the rule. It also explains which workers are covered, including workers covered regardless of the contractor’s claimed relationship with them, workers with disabilities paid under special certificates, and workers in bona fide apprenticeship or training programs. The section then identifies workers who are excluded, including certain Fair Labor Standards Act-covered individuals performing only incidental contract-related work and certain FLSA-exempt individuals such as learners, apprentices, messengers, students, and executive, administrative, or professional employees unless another wage statute covers them. Finally, it points users to Agency Labor Advisors listed in SAM.gov for guidance. In practice, this section tells contractors and contracting officers how to determine whether the EO minimum wage requirements apply to a contract, which workers must be paid under those rules, and where to seek help when coverage questions are close or fact-specific.

Annual Executive Order Minimum Wage Rate.

FAR 22.1904 explains how the annual Executive Order (E.O.) minimum wage rate is announced and how contract price adjustments are handled when that rate changes. It covers three main topics: the Administrator’s publication and notice duties, the contractor’s right to request a price adjustment after a new annual rate becomes effective, and the contracting officer’s limits on what may be adjusted. In practice, this section matters because it ties the E.O. minimum wage update to federal contract administration, especially for service and construction contracts that also involve Service Contract Labor Standards (SCLS) or Wage Rate Requirements (Construction) wage determinations. The rule is designed to ensure contractors can recover certain increased labor costs caused by the annual minimum wage increase, while preventing overpayment, duplicate recovery, or inclusion of unrelated costs such as overhead and profit. It also clarifies how the adjustment is calculated for each affected worker by comparing the new E.O. rate to the current E.O. rate, the applicable wage determination rate, and the worker’s actual wage, with no increase if the result is zero or negative. Overall, the section provides the timing, notice, and pricing mechanics needed to implement annual minimum wage changes consistently across covered federal contracts.

Enforcement of Executive Order Minimum Wage Requirements.

FAR 22.1905 explains how Executive Order 14026 minimum wage requirements are enforced on federal contracts. It covers who has enforcement authority, how complaints are handled, what information contracting officers must report to the Department of Labor, how investigations are conducted, and what remedies and sanctions may follow. It also addresses payment withholding, protection of complainant identity, unpaid wage remedies, antiretaliation relief, debarment, and what happens if the contract clause was omitted and must be added retroactively. In practice, this section makes clear that the Department of Labor—not the contracting agency—runs compliance investigations, while contracting officers still have important administrative duties such as reporting complaints, withholding funds when directed, and helping enforce contract terms. For contractors, it means wage compliance failures can trigger withheld payments, corrective action demands, possible debarment, and retroactive contract modifications. For agencies, it means they must coordinate closely with the Wage and Hour Division and ensure the required clause is in place from the start of performance.

Contract clause.

FAR 22.1906 tells contracting officers when they must include the Executive Order 14026 minimum wage clause, FAR 52.222-55, in solicitations and contracts. It applies specifically when the acquisition already includes either the Construction Wage Rate Requirements clause at FAR 52.222-6 or the Service Contract Labor Standards clause at FAR 52.222-41, and the work will be performed, in whole or in part, in the United States. In practical terms, this section ties the EO 14026 minimum wage requirement to covered construction and service contracts, ensuring that contractor and subcontractor workers on those contracts receive at least the applicable federal minimum wage required by the Executive Order. The section is a clause prescription rule, so its main function is to tell the contracting officer when the clause must be inserted; it does not itself set the wage rate or describe the full compliance mechanics. For contractors, the significance is that covered solicitations and contracts may impose an additional wage floor on top of Davis-Bacon or Service Contract Labor Standards requirements, and failure to flow the clause through can create compliance and pricing issues. For agencies, the rule helps ensure consistent implementation of the Executive Order across covered federal contracts performed in the United States.