FAR 22.2108—Multiemployer plans or other funds, plans, or programs.
Plain-English Summary
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.
Key Rules
Shared plans are allowed
A contractor may meet its E.O. 13706 and 29 CFR part 13 obligations through a multiemployer plan shared with other contractors. The FAR does not require each contractor to maintain a separate leave system if the shared arrangement is otherwise compliant.
Individual plans are also allowed
A contractor may instead use its own individual fund, plan, or program to provide the required paid sick leave. This gives contractors flexibility to design a standalone compliance mechanism rather than joining a multiemployer arrangement.
Compliance depends on DOL rules
The section expressly cross-references 29 CFR 13.8, which governs the conditions for using a multiemployer plan or an individual fund, plan, or program. The FAR provision itself does not set the detailed requirements; those come from the Department of Labor regulations.
Alternative structure, same obligation
Using a multiemployer plan or individual fund does not reduce the underlying obligation to provide paid sick leave required by the Executive Order and implementing regulations. The arrangement is only a method of fulfilling the obligation, not an exception to it.
Responsibilities
Contractor
Choose a compliant method for providing paid sick leave, either through a multiemployer plan with other contractors or through an individual fund, plan, or program. Ensure the chosen arrangement satisfies 29 CFR 13.8 and fully meets the contractor’s obligations under E.O. 13706 and 29 CFR part 13.
Contracting Officer
Recognize that contractors may use shared or individual benefit structures to comply, and evaluate compliance by reference to the applicable labor regulations rather than by assuming a single required format. Coordinate with labor compliance requirements as needed when administering covered contracts.
Department of Labor / Wage and Hour Division
Provide the substantive rules in 29 CFR part 13, including the requirements for multiemployer plans and individual funds, plans, or programs. Interpret and enforce whether a contractor’s arrangement actually satisfies the paid sick leave requirements.
Other Participating Contractors
If participating in a multiemployer plan, maintain the shared arrangement in a way that supports compliance for all participating contractors. Ensure the plan structure, contributions, and administration remain consistent with the governing labor rules.
Practical Implications
Contractors have flexibility in how they administer paid sick leave, which can reduce administrative burden and support industry-wide benefit structures.
The main pitfall is assuming that any shared fund or leave bank automatically qualifies; the arrangement must meet the specific requirements in 29 CFR 13.8.
Contracting officers should not treat the existence of a multiemployer plan as proof of compliance without checking that the plan is legally sufficient under the DOL rules.
Contractors using a shared plan should document how the arrangement covers all required employees and how it satisfies the paid sick leave obligations on covered contracts.
Because the FAR section is brief and cross-referential, users must read it together with E.O. 13706 and 29 CFR part 13 to understand the full compliance standard.
Official Regulatory Text
Contractors may fulfill their obligations under E.O. 13706 and 29 CFR Part 13 jointly with other contractors through a multi-employer plan, or may fulfill their obligations through an individual fund, plan, or program (see 29 CFR 13.8 ).