22.406-7 Compliance checking
Source: FAR 22.406-7 on acquisition.gov
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.
(a) General. The contracting officer shall make checks and investigations on all contracts covered by this subpart as may be necessary to ensure compliance with the labor standards requirements of the contract.
(b) Regular compliance checks. Regular compliance checking includes the following activities:
(1) Employee interviews to determine correctness of classifications, rates of pay, fringe benefits payments, and hours worked. (See https://www.gsa.gov/forms-library/labor-standards-interview-0" target="_blank">Standard Form 1445.)
(2) On-site inspections to check type of work performed, number and classification of workers, and fulfillment of posting requirements.
(3) Payroll reviews to ensure that payrolls of prime contractors and subcontractors have been submitted on time and are complete and in compliance with contract requirements.
(4) Comparison of the information in this paragraph (b) with available data, including daily inspector’s report and daily logs of construction, to ensure consistency.
(c) Special compliance checks. Situations that may require special compliance checks include -
(1) Inconsistencies, errors, or omissions detected during regular compliance checks; or
(2) Receipt of a complaint alleging violations. If the complaint is not specific enough, the complainant shall be so advised and invited to submit additional information.