Many compliance requirements apply only to certain contract types, values or industries. The FAR clause on combating trafficking in persons is different: it is included in essentially all federal solicitations and contracts, and it flows down to subcontracts. Firms that perform entirely in their own offices with their own employees sometimes assume it has nothing to do with them. It still applies, and for firms that use recruiters, staffing agencies or overseas suppliers, it deserves close attention. This is general information; talk to a lawyer about how the rules apply to your operations.
What the clause prohibits
The clause reflects a long-standing U.S. government policy of zero tolerance for trafficking in persons. In general terms, contractors, subcontractors, their employees and their agents are prohibited from:
- Engaging in severe forms of trafficking in persons during the period of performance
- Procuring commercial sex acts during the period of performance
- Using forced labor in the performance of the contract
- Destroying, concealing, confiscating or otherwise denying an employee access to the employee’s identity or immigration documents
- Using misleading or fraudulent practices in recruiting employees, such as misrepresenting wages, working conditions or the nature of the job
- Using recruiters that do not comply with local labor laws where recruiting takes place
- Charging employees recruitment fees
- Failing to provide return transportation, in certain circumstances, for employees brought into a country to work on the contract
- Providing or arranging housing that fails to meet the host country’s housing and safety standards
The clause also addresses written work documents for certain employees and other protections. Read the full text for the details that apply to your workforce.
What the clause requires
Beyond the prohibitions, contractors must notify employees of the policy and of the actions that may be taken for violations. They must inform the contracting officer and the agency inspector general immediately of any credible information about a violation, and cooperate with investigations. The clause must be included in subcontracts and other agreements for performance of the contract, and primes are expected to act on violations by their subcontractors.
Remedies for violations can include requiring the removal of an employee, suspending payments, termination, and suspension or debarment, among others.
Compliance plans for certain work outside the United States
Additional requirements apply to the portion of a contract involving supplies acquired outside the United States, other than commercially available off-the-shelf items, or services performed outside the United States, when its estimated value exceeds a threshold set in the FAR. For that work, contractors must maintain a written compliance plan appropriate to the size and nature of the work, post its relevant contents at the workplace and on their website or otherwise provide them to workers, and certify, before award and annually during performance, that they have implemented the plan and either found no abuses or taken appropriate action on any found.
Practical steps for any firm
Compliance does not require an elaborate program for a small domestic firm, but it does require that someone has read the clause and built it into ordinary business practice.
- Add the policy to your employee handbook and onboarding.
- Review recruiting and staffing agency agreements for fee and disclosure practices.
- Confirm that the clause appears in your subcontracts.
- Ask overseas suppliers how they recruit and house workers.
- Designate someone to receive and escalate reports, and keep records of the steps you take.
The clause and related policy are in FAR Subpart 22.17 at acquisition.gov.