FAR 22.2—Subpart 22.2

General.

FAR 22.201 explains the federal policy on the use of prison labor and work-release labor in contract performance. It ties the FAR to Executive Order 11755, as amended, and states the basic principle that inmate rehabilitation through meaningful work is encouraged, but only if the arrangement does not exploit convict labor or create unfair competition with free labor. The section identifies which categories of workers are not prohibited from being used on a contract: persons on parole or probation, persons who have been pardoned or who have completed their sentences, Federal prisoners, and certain nonfederal prisoners working in the community under approved work-release programs. It also lays out the conditions that must be met before nonfederal work-release labor may be used, including voluntary participation, labor union consultation, no displacement of existing workers, no use in labor-surplus occupations, no impairment of existing service contracts, local prevailing pay and conditions, and certification by the Attorney General that the jurisdiction’s work-release laws or regulations conform to the Executive Order. Finally, it notes that DOJ regulations delegate the certification and revocation authority to the Director of the Bureau of Justice Assistance. In practice, this section matters because contractors must screen labor sources carefully, and contracting officers should understand when prison or work-release labor is permissible and when it may raise compliance or labor-relations concerns.

Contract clause.

FAR 22.202 tells contracting officers when to include the Convict Labor clause at FAR 52.222-3 in solicitations and contracts. It applies to acquisitions above the micro-purchase threshold when performance will occur in the United States, Puerto Rico, the Northern Mariana Islands, American Samoa, Guam, or the U.S. Virgin Islands. The section also identifies three exceptions: contracts already subject to the separate convict labor prohibition in 41 U.S.C. chapter 65, purchases from Federal Prison Industries, Inc., and purchases from a State prison of finished supplies that are commercially available or available from existing stocks rather than specially fabricated items. In practice, this rule is a clause-coverage instruction that helps ensure the government uses the correct labor-restriction language and avoids duplicating or misapplying convict labor restrictions. It matters because clause inclusion affects solicitation drafting, contract compliance, and the contractor’s labor sourcing choices for covered work performed in the specified U.S. jurisdictions.

Scope of subpart.

FAR 22.2100 is the scope statement for the paid sick leave subpart in FAR Part 22. It tells readers that this subpart exists to implement Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors, and the Department of Labor’s implementing regulations at 29 CFR Part 13. In practical terms, it signals that the subpart is not a standalone policy choice by an agency or contractor; it is the FAR’s vehicle for carrying out a governmentwide paid sick leave requirement for covered federal contracts and contract-like instruments. This section does not itself spell out eligibility, accrual, use, recordkeeping, or flowdown details, but it frames those requirements as part of a coordinated regulatory scheme between the FAR and DOL rules. For contracting officers, it means the subpart must be applied in conjunction with the executive order and DOL regulations when drafting solicitations, awarding contracts, and administering covered contracts. For contractors, it means compliance obligations come from the combined effect of the FAR subpart and 29 CFR Part 13, not from the scope section alone.

Definitions.

FAR 22.2101 is the definitions section for the paid sick leave requirements implemented under Executive Order 13706 and 29 CFR part 13. It tells readers exactly how to interpret the key terms used throughout the subpart, including accrual year, certification issued by a health care provider, employee, health care provider, multiemployer plan, and paid sick leave. The most important practical issue is determining who is covered: the definition of employee is broad and includes people performing work on or in connection with covered contracts, including certain apprentices and trainees, and it applies regardless of the contractual label used by the parties. The section also distinguishes work performed directly on a contract from work performed in connection with a contract, which matters for coverage and compliance. In practice, these definitions control who accrues sick leave, how much leave may be limited in a year, what documentation may be required, and whether a contractor can rely on a multiemployer plan or other compliant arrangement to satisfy obligations under the rule.

Policy.

FAR 22.2102 states the basic policy for the paid sick leave requirements tied to Executive Order 13706 and 29 CFR part 13. It tells agencies to require contractors to let covered employees accrue and use paid sick leave, and it makes clear that these requirements apply to employees performing work on or in connection with covered contracts. The section also explains how the federal paid sick leave rules interact with other legal authorities, including more protective Federal or State laws, municipal ordinances, collective bargaining agreements, the Service Contract Labor Standards statute, the Wage Rate Requirements (Construction) statute, the Family and Medical Leave Act, and State and local paid sick time laws. It further addresses how a contractor’s voluntary paid time off policy can satisfy the requirement if it meets or exceeds the E.O. and DOL standards. Finally, it allocates responsibility: contractors are generally responsible for compliance, while the Department of Labor is responsible for enforcement unless another provision in the subpart says otherwise. In practice, this section is the policy anchor for determining when paid sick leave must be provided, whether other leave arrangements can substitute, and who is accountable for meeting and enforcing the rule.

Applicability.

FAR 22.2103 explains when this subpart on labor standards applies. It covers two main subject areas: first, contracts subject to the Service Contract Labor Standards statute or the Wage Rate Requirements (Construction) statute, and second, the employees whose wages are governed by those statutes or by the Fair Labor Standards Act, including employees who are exempt from FLSA minimum wage and overtime rules. The section also draws a geographic line: the subpart applies only when contract performance occurs in whole or in part within the United States, and if performance is split between U.S. and non-U.S. locations, the subpart applies to the portion performed in the United States. In practice, this provision tells contracting officers and contractors when the labor-related requirements in this subpart must be considered and enforced. It matters because it determines the reach of wage-related protections and compliance obligations on covered contracts and covered workers.

Exclusions.

FAR 22.2104 explains when the paid sick leave requirements in this subpart do not apply, or do not apply immediately, even though the underlying Executive Order and implementing regulations generally require covered federal contractors to provide paid sick leave. It addresses three specific exclusion areas: employees who spend less than 20 percent of their work hours in a workweek on covered contract work, certain employees covered by a qualifying collective bargaining agreement ratified before September 30, 2016, and the effect of a Government unilateral option exercise on whether the clause at 52.222-62 is triggered. In practice, this section is about identifying which workers are outside the rule, which workers are temporarily grandfathered under existing labor agreements, and when a contract action does or does not create a new obligation to flow in the paid sick leave clause. Contractors must use these exclusions carefully because they are narrow, fact-specific, and tied to workweek-by-workweek status, agreement dates, and contract modification history. Contracting officers must understand these exclusions to avoid incorrectly requiring the clause or overlooking when it should be included. The section exists to prevent over-application of the paid sick leave mandate while preserving coverage for employees who are actually performing covered work.

Paid sick leave for Federal contractors and subcontractors.

FAR 22.2105 implements the paid sick leave requirements that apply to covered federal contractors and subcontractors under Executive Order 13706 and the Department of Labor’s regulations at 29 CFR part 13. This section addresses how sick leave accrues, how contractors may use an alternative frontloading method, the maximum annual accrual and maximum available balance, carryover from year to year, reinstatement of leave after rehire, and when unused leave may or may not be paid out at separation. It also covers employee use of leave, the process for requesting leave, and the limited circumstances in which a contractor may require certification or other documentation for absences of three or more consecutive full workdays. In practice, this rule is about ensuring covered workers can earn and use paid sick leave for the protected purposes in the DOL regulations while giving contractors some flexibility in administration. Contractors must track hours worked on or in connection with covered contracts, maintain accurate leave records, provide required notices, and apply the leave rules consistently. Contracting officers should understand that compliance is driven by the clause at 52.222-62 and the incorporated DOL rules, so contract administration and labor compliance issues can arise quickly if leave policies are not aligned with the regulation.

Prohibited acts.

FAR 22.2106 explains the prohibited acts tied to the paid sick leave requirements implemented through Executive Order 13706 and the clause at FAR 52.222-62, Paid Sick Leave Under Executive Order 13706. It covers three main subject areas: interference with an employee’s accrual or use of paid sick leave; retaliation or discrimination against employees for using leave, asserting rights, participating in investigations or proceedings, or informing others of their rights; and failures to create, maintain, or provide required records to the Wage and Hour Division. In practice, this section tells contractors what they must not do when administering paid sick leave on covered federal contracts and what conduct can trigger enforcement under the Department of Labor’s rules at 29 CFR Part 13. Its purpose is to protect employees’ ability to earn and use paid sick leave without employer obstruction or retaliation, while also ensuring that contractors keep records that allow compliance to be verified. For contractors, the practical significance is that leave administration, discipline decisions, communications with employees, and recordkeeping all need to be handled carefully to avoid violations. For contracting officers and compliance personnel, this section signals that the paid sick leave clause is not just a benefits requirement but also an anti-retaliation and documentation requirement with enforcement consequences.

Waiver of rights.

FAR 22.2107 is a narrow but important labor-compliance rule that addresses waiver of employee rights under Executive Order 13706 and its implementing regulations at 29 CFR part 13. It covers two related prohibitions: employees themselves cannot give up those rights, and contractors cannot pressure, encourage, or otherwise induce employees to waive them. In practice, this means paid sick leave rights required on covered federal contracts are not optional, cannot be signed away in onboarding paperwork, and cannot be traded away through private agreements, releases, or side deals. The section exists to preserve the minimum labor protections established by the Executive Order and the Department of Labor regulations, and to prevent contractors from undermining those protections through contract language or employment practices. For contracting officers and contractors, the practical significance is that any waiver clause, acknowledgment, or settlement term affecting these rights must be reviewed carefully to ensure it does not conflict with the nonwaiver rule in 29 CFR 13.7.

Multiemployer plans or other funds, plans, or programs.

FAR 22.2108 explains how contractors may satisfy the paid sick leave obligations imposed by Executive Order 13706 and 29 CFR part 13 when they choose to do so through a shared arrangement rather than only through a single-employer system. The section addresses two compliance pathways: a multiemployer plan used jointly with other contractors, and an individual fund, plan, or program maintained by one contractor. Its purpose is to make clear that the FAR allows these alternative structures, but only if they comply with the Department of Labor’s implementing rules, especially 29 CFR 13.8. In practice, this matters because many contractors use benefit plans, leave banks, or trust arrangements to administer paid sick leave efficiently across multiple contracts or employers. The section is short, but it is important because it points contractors and contracting officers to the controlling labor regulations that determine whether the arrangement actually satisfies the contractor’s legal obligations.

Enforcement of Executive Order 13706 paid sick leave requirements.

FAR 22.2109 explains how Executive Order 13706 paid sick leave requirements are enforced on covered federal contracts. It covers who has authority to investigate violations, how complaints are filed and protected, what contracting officers must report to the Department of Labor, how investigations are handled, and the remedies and sanctions that may follow. Those remedies include withholding or suspending payments, civil actions to recover unpaid amounts, termination for default or cause, debarment, and relief for interference with an employee’s accrual or use of paid sick leave. The section also clarifies the limited role of contracting agencies in compliance investigations: they do not conduct the labor-law investigation themselves, but contracting officers still retain their normal contract-administration and enforcement authority. In practice, this section is the enforcement bridge between the labor standards rules in 29 CFR part 13 and the contract administration process, so contractors need to understand both DOL enforcement and the contracting officer’s separate contract remedies.

Contract clause.

FAR 22.2110 tells contracting officers when to include the paid sick leave clause at 52.222-62, Paid Sick Leave Under Executive Order 13706, in solicitations and contracts. It ties that requirement to two labor standards clauses: 52.222-6, Construction Wage Rate Requirements, and 52.222-41, Service Contract Labor Standards. The section also defines the geographic trigger for the rule by requiring that the work be performed, in whole or in part, in the United States, meaning the 50 States and the District of Columbia. In practice, this provision is a clause prescription rule: it does not itself create the sick leave entitlement, but tells the contracting officer when the paid sick leave clause must be inserted so the contract properly flows down the Executive Order 13706 requirements. For contractors, it signals that covered construction or service work performed in the United States may carry paid sick leave obligations even if only part of the work is domestic. For agencies, it is a simple but important compliance checkpoint because omission of the clause can create labor compliance and contract administration problems later.