← All Free ToolsGo back to previous tools page
Explore More Tools →
section22.1604

Compliance evaluation and complaint investigations and sanctions for violations

Overview

This section establishes the authority of the Secretary of Labor to investigate contractor compliance with employee rights notifications and outlines the enforcement mechanisms and inter-agency cooperation required for handling violations. It specifically governs the oversight of the "Notification of Employee Rights Under the National Labor Relations Act" requirements.

Key Rules

  • Investigatory Authority: The Secretary of Labor has the power to conduct compliance evaluations and investigate complaints against both contractors and subcontractors regarding FAR clause 52.222-40.
  • Inter-Agency Cooperation: Federal contracting departments and agencies are legally required to assist and provide information to the Secretary of Labor during these investigations.
  • Regulatory Enforcement: Sanctions and enforcement procedures for identified violations are conducted in accordance with Department of Labor regulations (29 CFR 471.10 through 471.16).
  • Agency Head Override: An agency head can block the Secretary from terminating a contract or debarring a contractor by providing a written objection stating that the contractor’s performance is essential to the agency’s mission.

Practical Implications

  • Audit Readiness: Contractors and subcontractors must ensure they are strictly adhering to labor rights posting requirements, as they are subject to Department of Labor audits and complaint-driven investigations.
  • Mission-Critical Safeguards: While labor violations carry heavy potential penalties, the "essential mission" exception provides a layer of protection for contractors performing high-priority or unique services where a replacement cannot be easily found.

Need help?

Get FAR guidance, audit prep support, and proposal insights from the AudCor team.

Talk to an expert