22.2103
Applicability
FAR 22.2103 defines which federal contracts and employees are subject to paid sick leave requirements, focusing on service and construction contracts performed in the U.S.
Overview
FAR 22.2103 outlines the applicability of Subpart 22.21, which establishes paid sick leave requirements for federal contractors. This section specifies that the subpart applies to contracts subject to the Service Contract Labor Standards statute (formerly the Service Contract Act) or the Wage Rate Requirements (Construction) statute (formerly the Davis-Bacon Act), provided the work is performed in whole or in part within the United States. It also clarifies that the requirements extend to employees working on or in connection with such contracts, including those whose wages are governed by the Fair Labor Standards Act (FLSA), even if they are exempt from FLSA minimum wage and overtime provisions.
Key Rules
- Covered Contracts
- Applies to contracts under the Service Contract Labor Standards or Wage Rate Requirements (Construction) statutes, with performance in the U.S.
- Geographic Scope
- Applies to the portion of the contract performed within the United States, even if part of the work is performed abroad.
- Covered Employees
- Applies to employees whose wages are governed by the Service Contract Labor Standards, Wage Rate Requirements (Construction), or FLSA, including exempt employees.
Responsibilities
- Contracting Officers: Must determine if contracts fall under the covered statutes and ensure compliance with paid sick leave requirements for applicable employees.
- Contractors: Must provide paid sick leave to eligible employees working on or in connection with covered contracts performed in the U.S.
- Agencies: Oversee compliance and ensure proper application of the requirements to relevant contracts and employees.
Practical Implications
- This section ensures that federal contractors provide paid sick leave to employees working on certain service and construction contracts performed in the U.S.
- Contractors must carefully assess contract coverage and employee eligibility, especially for contracts with mixed performance locations or employees with FLSA exemptions.
- Failure to properly apply these requirements can result in noncompliance and potential penalties.