22.2108
Multiemployer plans or other funds, plans, or programs
Contractors can meet paid sick leave requirements for federal contracts either through a multiemployer plan or by establishing their own compliant plan or program.
Overview
FAR 22.2108 clarifies that contractors subject to paid sick leave requirements under Executive Order 13706 and 29 CFR Part 13 may meet their obligations either individually or collectively. Specifically, contractors can provide paid sick leave benefits through a multiemployer plan (a benefit plan shared by multiple employers, often via a union or industry group), or through their own separate fund, plan, or program. This flexibility allows contractors to choose the most efficient and compliant method for administering paid sick leave to their employees working on or in connection with covered federal contracts. Reference is made to 29 CFR 13.8 for further regulatory details on these arrangements.
Key Rules
- Multiemployer Plan Option
- Contractors may use a multiemployer plan to provide paid sick leave benefits, sharing administration and costs with other employers.
- Individual Fund, Plan, or Program Option
- Contractors may also fulfill their obligations by establishing and administering their own paid sick leave fund, plan, or program.
Responsibilities
- Contracting Officers: Ensure contractor compliance with paid sick leave requirements and verify the method used (multiemployer or individual plan).
- Contractors: Choose and implement a compliant method (multiemployer or individual) to provide paid sick leave as required by E.O. 13706 and 29 CFR Part 13.
- Agencies: Oversee contractor compliance and address any disputes or questions regarding plan adequacy.
Practical Implications
- This section exists to provide flexibility in how contractors meet paid sick leave obligations, accommodating both unionized and non-unionized environments.
- Contractors must ensure that whichever method they choose, it fully complies with federal requirements.
- Common pitfalls include failing to ensure the chosen plan meets all regulatory requirements or misunderstanding the administrative responsibilities involved.