FAR 22.101-3—Reporting labor disputes.
Plain-English Summary
FAR 22.101-3 requires prompt reporting of labor disputes that could affect contract performance. It covers two related duties: first, the office administering the contract must report any potential or actual labor dispute that may interfere with performance of contracts under its cognizance, following agency procedures; second, if the contract includes FAR 52.222-1, Notice to the Government of Labor Disputes, the contractor must also report any actual or potential dispute that may delay performance. The section exists so the Government can identify labor unrest early, assess schedule and mission impacts, and take appropriate management or contingency actions before performance is disrupted. In practice, this means labor issues are not treated as purely internal contractor matters when they could affect delivery, services, or continuity of operations. The rule is about notification and awareness, not about resolving the dispute itself, but timely reporting can be critical to avoiding missed deadlines, service interruptions, and downstream contract administration problems.
Key Rules
Agency reporting duty
The office administering the contract must report any potential or actual labor dispute that may interfere with performance of contracts under its cognizance. The report must be made in accordance with agency procedures, so the exact routing, timing, and content are controlled by agency policy.
Contractor reporting when clause applies
If the contract includes FAR 52.222-1, the contractor must report any actual or potential labor dispute that may delay contract performance. This creates a direct contractual notice obligation in addition to any general communication with the contracting officer.
Applies to potential and actual disputes
The reporting requirement is triggered not only by strikes or other active disputes, but also by potential disputes that could affect performance. The standard is forward-looking and preventive, so parties should report early when a dispute appears likely to disrupt work.
Focus on performance impact
The key question is whether the labor dispute may interfere with or delay performance of the contract. A dispute that has no realistic effect on contract performance may not trigger reporting, but once delay or interference is possible, notice should be considered.
Agency procedures control internal reporting
For the contract administration office, the FAR defers to agency procedures for how the report is made. Contractors should therefore understand that the Government’s internal reporting chain may vary by agency, even though the underlying obligation to report remains the same.
Responsibilities
Office administering the contract
Monitor for potential or actual labor disputes affecting contracts under its cognizance and report them in accordance with agency procedures. The office should elevate the issue promptly so the agency can assess risk to performance and take appropriate action.
Contractor
When FAR 52.222-1 is included in the contract, notify the Government of any actual or potential labor dispute that may delay contract performance. The contractor should provide notice early enough to allow the Government to respond to possible schedule or mission impacts.
Contracting Officer
Ensure the contract includes FAR 52.222-1 when required, receive and act on labor dispute notices, and coordinate with the administering office and agency stakeholders as needed. The contracting officer should use the notice to manage performance risk and document any resulting contract administration actions.
Agency
Establish and follow procedures for reporting labor disputes from the contract administration office and, where applicable, for handling contractor notices. The agency should use these reports to support continuity planning, oversight, and communication with affected program offices.
Practical Implications
Labor disputes should be flagged early, before they become strikes, lockouts, or missed deliveries. Waiting until performance is already disrupted can leave the Government with fewer options to manage the impact.
Contractors should not assume that only a formal strike must be reported. A credible threat, bargaining impasse, or other developing dispute may be enough if it could delay performance.
The reporting obligation is tied to contract performance, so teams should assess whether the dispute affects labor needed for the specific contract, not just the contractor’s workforce generally.
Agency procedures matter for the Government side, so contracting personnel should know the required reporting chain and documentation steps in advance.
A common pitfall is treating labor dispute notice as a one-time event. Conditions can change quickly, so follow-up communication may be needed as the situation develops or worsens.
Official Regulatory Text
The office administering the contract shall report, in accordance with agency procedures, any potential or actual labor disputes that may interfere with performing any contracts under its cognizance. If a contract contains the clause at 52.222-1 , Notice to the Government of Labor Disputes, the contractor also must report any actual or potential dispute that may delay contract performance.