Contractors already have begun to notice the inclusion of the new human
trafficking FAR contract clause, required to be incorporated into all new
contracts. The rule imposes affirmative duties on federal prime contractors as
well as subcontractors.
Executive Order 13627 created a new government anti-trafficking policy. The
policy prohibits employment practices such as failing to communicate terms and
conditions of employment in a language accessible to the employee, restricting
access to immigration documents, using employment recruiters who do not comply
with local labor laws, and charging employee recruitment fees.
The resulting FAR provisions, implemented earlier this year, require all
prime contractors to notify their employees and agents of the government’s new
anti-trafficking policy, as well as disciplinary action that will be taken
against individuals who violate the policy. Primes are required to flow down
these rules in their subcontracts.
In addition, the new rules require contractors and subcontractors to create
specific anti-trafficking compliance plans if they are awarded contracts meeting
certain criteria. Specifically, compliance plans are required for prime
contractors and subcontractors with contracts valued at $500,000 or more for the
procurement of non-COTS supplies to be acquired outside the U.S. – or contracts
for the procurement of services to be performed outside the U.S.
It remains unclear how the government will interpret and enforce these new
rules. However, the administration’s focus on this issue and previous record of
aggressive enforcement should make contractors err on the side of caution.
For more information on this or other government contracting issues, please
contact the author,
Christian B. Nagel, or any of the other
government contracts attorneys listed.