22.406-7
Compliance checking
Contracting officers must conduct regular and special compliance checks—including interviews, inspections, and payroll reviews—to ensure contractors meet labor standards on covered contracts.
Overview
FAR 22.406-7 outlines the procedures contracting officers must follow to ensure contractor compliance with labor standards on covered contracts. It mandates both regular and special compliance checks, including employee interviews, on-site inspections, payroll reviews, and data comparisons. The regulation also addresses how to handle inconsistencies or complaints regarding labor standards violations, ensuring that all issues are investigated and resolved appropriately.
Key Rules
- General Compliance Checks
- Contracting officers are required to conduct necessary checks and investigations to verify adherence to labor standards.
- Regular Compliance Checks
- These include employee interviews (using Standard Form 1445), on-site inspections, payroll reviews, and cross-checking with daily reports and logs.
- Special Compliance Checks
- Triggered by inconsistencies, errors, omissions, or complaints. If a complaint lacks detail, the complainant must be asked for more information.
Responsibilities
- Contracting Officers: Must actively monitor, investigate, and document compliance with labor standards, and respond to complaints or irregularities.
- Contractors: Must maintain accurate payrolls, ensure proper worker classification and pay, and comply with posting and reporting requirements.
- Agencies: Oversee contracting officers’ enforcement of labor standards and ensure proper documentation and follow-up on compliance issues.
Practical Implications
- This section ensures labor standards are enforced on federal contracts, protecting workers and maintaining fair practices.
- Contractors must be diligent in record-keeping and compliance to avoid investigations or penalties.
- Common pitfalls include incomplete payrolls, misclassification of workers, and failure to post required notices.