FAR 22.1702—Definitions.
Plain-English Summary
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.
Key Rules
Agency and employee reach
An "agent" includes directors, officers, employees, and independent contractors authorized to act for the organization. An "employee" for this subpart means a contractor employee directly engaged in contract performance who has more than minimal impact or involvement, which helps determine whose conduct and knowledge matter for compliance.
Broad coercion standard
"Coercion" covers threats of serious harm or physical restraint, schemes or patterns that make a person believe harm or restraint will follow nonperformance, and abuse or threatened abuse of legal process. This broad definition captures both direct threats and more subtle pressure tactics.
Forced labor and involuntary servitude
"Forced labor" and "involuntary servitude" both focus on obtaining labor or services through threats, schemes, or abuse of law/legal process, and they include conduct directed at the worker or another person. These definitions are central to identifying prohibited labor practices under the subpart.
Commercial sex and sex trafficking
A "commercial sex act" is any sex act for which anything of value is given or received, and "sex trafficking" is recruiting, harboring, transporting, providing, or obtaining a person for the purpose of a commercial sex act. The definition of severe forms of trafficking in persons includes sex trafficking and labor trafficking involving force, fraud, or coercion.
Debt bondage prohibition
"Debt bondage" exists when a debtor’s personal services are pledged as security for debt but the value of those services is not reasonably applied to the debt, or the services are not limited and defined. This definition targets exploitative arrangements that trap workers through manipulated debt.
Recruitment fees are broadly prohibited
"Recruitment fees" include a wide range of charges tied to recruiting, hiring, travel, visas, documents, medical exams, security checks, legal and notary services, interpretation, government-mandated fees, transportation, deposits, insurance, and equipment charges. The definition also makes clear that the fee remains a recruitment fee regardless of how it is paid, repaid, or collected, and regardless of whether it is imposed by an employer, agent, recruiter, staffing firm, affiliate, or subcontractor at any tier.
Subcontracting chain is covered
A "subcontract" is any contract entered into by a subcontractor to furnish supplies or services for a prime contract or another subcontract, and a "subcontractor" includes any supplier, distributor, vendor, or firm furnishing supplies or services to or for a prime contractor or another subcontractor. This ensures the trafficking rules can apply throughout the supply and labor chain, not just to the prime contractor.
Geographic scope
"United States" means the 50 States, the District of Columbia, and outlying areas. This definition matters when determining where the subpart’s requirements apply and how performance location is analyzed.
Responsibilities
Contracting Officer
Use these definitions when evaluating compliance with trafficking-related contract clauses, reviewing allegations, and determining whether conduct by a contractor, agent, employee, or subcontractor falls within the subpart’s prohibitions. Apply the definitions consistently when deciding whether remedies, reporting, or corrective action are warranted.
Contractor
Understand and implement these definitions in policies, recruiting practices, subcontract management, and employee training. Ensure that agents, recruiters, staffing firms, and subcontractors do not impose prohibited recruitment fees or engage in coercive, forced-labor, or trafficking-related conduct.
Subcontractor
Comply with the same trafficking-related standards when furnishing supplies or services under a prime contract or lower-tier subcontract. Prevent prohibited recruitment practices and avoid conduct that could constitute forced labor, debt bondage, or sex trafficking.
Agent
Act only within authorized authority and avoid conduct that could amount to coercion, forced labor, trafficking, or improper recruitment fee collection. Follow the contractor’s compliance requirements because the agent’s actions may be attributed to the organization.
Agency
Apply the definitions in oversight, investigation, and enforcement of anti-trafficking requirements. Ensure solicitation and contract administration practices reflect the broad reach of the definitions across labor sourcing and subcontracting tiers.
Practical Implications
These definitions are the foundation for trafficking compliance, so contractors should train recruiters, HR staff, project managers, and subcontract administrators on what counts as coercion, forced labor, debt bondage, and recruitment fees.
A common pitfall is assuming only direct cash charges are prohibited; the definition of recruitment fees is much broader and can include deductions, reimbursements through wage concessions, travel costs, document fees, and charges imposed by third parties.
Another frequent mistake is overlooking lower-tier subcontractors and labor brokers. The definitions explicitly reach agents and subcontractors at all tiers, so prime contractors need flowdown controls, audits, and reporting mechanisms.
Because "employee" is defined by direct involvement and more-than-minimal impact on performance, contractors should not assume only on-site laborers matter; supervisors, recruiters, and other personnel may also be relevant to compliance and liability.
The broad definitions of coercion and forced labor mean that threats involving immigration status, legal process, debt, or family harm can create serious compliance risk even without physical violence, so contractors should treat complaints and red flags urgently.
Official Regulatory Text
As used in this subpart- Agent means any individual, including a director, an officer, an employee, or an independent contractor, authorized to act on behalf of the organization. Coercion means- (1) Threats of serious harm to or physical restraint against any person; (2) Any scheme, plan, or pattern intended to cause a person to believe that failure to perform an act would result in serious harm to or physical restraint against any person; or (3) The abuse or threatened abuse of the legal process. Commercial sex act means any sex act on account of which anything of value is given to or received by any person. Debt bondage means the status or condition of a debtor arising from a pledge by the debtor of his or her personal services or of those of a person under his or her control as a security for debt, if the value of those services as reasonably assessed is not applied toward the liquidation of the debt or the length and nature of those services are not respectively limited and defined. Employee means an employee of the Contractor directly engaged in the performance of work under the contract who has other than a minimal impact or involvement in contract performance. Forced labor means knowingly providing or obtaining the labor or services of a person- (1) By threats of serious harm to, or physical restraint against, that person or another person; (2) By means of any scheme, plan, or pattern intended to cause the person to believe that, if the person did not perform such labor or services, that person or another person would suffer serious harm or physical restraint; or (3) By means of the abuse or threatened abuse of law or the legal process. Involuntary servitude includes a condition of servitude induced by means of- (1) Any scheme, plan, or pattern intended to cause a person to believe that, if the person did not enter into or continue in such conditions, that person or another person would suffer serious harm or physical restraint; or (2) The abuse or threatened abuse of the legal process. Recruitment fees means fees of any type, including charges, costs, assessments, or other financial obligations, that are associated with the recruiting process, regardless of the time, manner, or location of imposition or collection of the fee. (1) Recruitment fees include, but are not limited to, the following fees (when they are associated with the recruiting process) for- (i) Soliciting, identifying, considering, interviewing, referring, retaining, transferring, selecting, training, providing orientation to, skills testing, recommending, or placing employees or potential employees; (ii) Advertising: (iii) Obtaining permanent or temporary labor certification, including any associated fees; (iv) Processing applications and petitions; (v) Acquiring visas, including any associated fees; (vi) Acquiring photographs and identity or immigration documents, such as passports, including any associated fees; (vii) Accessing the job opportunity, including required medical examinations and immunizations; background, reference, and security clearance checks and examinations; and additional certifications; (viii) An employer's recruiters, agents or attorneys, or other notary or legal fees; (ix) Language interpretation or translation, arranging for or accompanying on travel, or providing other advice to employees or potential employees; (x) Government-mandated fees, such as border crossing fees, levies, or worker welfare funds; (xi) Transportation and subsistence costs- (A) While in transit, including, but not limited to, airfare or costs of other modes of transportation, terminal fees, and travel taxes associated with travel from the country of origin to the country of performance and the return journey upon the end of employment; and (B) From the airport or disembarkation point to the worksite; (xii) Security deposits, bonds, and insurance; and (xiii) Equipment charges. (2) A recruitment fee, as described in the introductory text of this definition, is a recruitment fee, regardless of whether the payment is (i) Paid in property or money; (ii) Deducted from wages; (iii) Paid back in wage or benefit concessions; (iv) Paid back as a kickback, bribe, in-kind payment, free labor, tip, or tribute; or (v) Collected by an employer or a third party, whether licensed or unlicensed, including, but not limited to- (A) Agents; (B) Labor brokers; (C) Recruiters; (D) Staffing firms (including private employment and placement firms); (E) Subsidiaries/affiliates of the employer; (F) Any agent or employee of such entities; and (G) Subcontractors at all tiers. Severe forms of trafficking in persons means- (1) Sex trafficking in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or (2) The recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. Sex trafficking means the recruitment, harboring, transportation, provision, or obtaining of a person for the purpose of a commercial sex act. Subcontract means any contract entered into by a subcontractor to furnish supplies or services for performance of a prime contract or a subcontract. Subcontractor means any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor or another subcontractor. United States means the 50 States, the District of Columbia, and outlying areas.