Overview
This section outlines the enforcement mechanisms for Executive Order 13706, establishing the Department of Labor (DOL) as the primary investigative authority while defining the administrative and remedial responsibilities of the Contracting Officer (CO) regarding paid sick leave violations.
Key Rules
- Enforcement Authority: The authority to investigate potential violations is held exclusively by the DOL’s Wage and Hour Division; contracting agencies do not have the authority to conduct their own compliance investigations under this subpart.
- Mandatory Reporting: If a contracting agency receives a complaint, the CO must report it to the DOL within 14 days, providing all available evidence, statements, and confirmation that FAR clause 52.222-62 was included in the contract.
- Confidentiality: The identity of any person making a complaint must remain confidential and cannot be disclosed to anyone other than Federal officials without the individual's prior consent.
- Cross-Contract Withholding: The government may withhold or suspend payments from the current contract—or any other Federal contract held by the same contractor—to satisfy unpaid sick leave obligations or liquidated damages.
- Range of Sanctions: Violations may result in contract termination for default/cause, debarment proceedings, civil actions for underpayments, and orders for reinstatement or promotion in cases of discrimination.
- Retroactive Clause Incorporation: If the required paid sick leave clause was omitted from a covered contract, the CO must incorporate it retroactively to the start of performance, even if it requires negotiating additional costs.
Practical Implications
- Cross-Contract Liability: Contractors must be aware that a violation on one project can lead to payment withholdings on entirely unrelated Federal contracts held by the same entity.
- Administrative Compliance: Because recordkeeping failures alone can trigger a total suspension of contract payments, contractors must ensure that all sick leave accrual and usage data is readily available for DOL inspection.
- CO Role: While the CO does not lead the investigation, they act as the "enforcement arm" for the DOL, mandated to freeze funds or terminate contracts upon the direction of the Wage and Hour Division.