28.309 Contract clauses for workers’ compensation insurance
Source: FAR 28.309 on acquisition.gov
Contracting officers must include the appropriate workers’ compensation insurance clause in overseas contracts to ensure employee coverage under the Defense Base Act or alternative provisions if a waiver applies.
Overview
FAR 28.309 prescribes the use of specific contract clauses related to workers’ compensation insurance for contracts performed outside the United States. It directs contracting officers to include either the Workers’ Compensation Insurance (Defense Base Act) clause or the Worker’s Compensation and War-Hazard Insurance Overseas clause, depending on the applicability of the Defense Base Act (DBA) and any waivers granted by the Secretary of Labor. The section ensures that employees working on certain overseas contracts are covered by appropriate insurance, either under the DBA or alternative provisions if a waiver is in place.
Key Rules
- Use of 52.228-3 Clause (DBA Coverage)
- Insert this clause in contracts for public works performed outside the U.S. or contracts financed under the Foreign Assistance Act, unless specifically excluded.
- Use of 52.228-4 Clause (DBA Waiver)
- Insert this clause when the contract is for public works outside the U.S. and the Secretary of Labor has waived DBA applicability.
Responsibilities
- Contracting Officers: Must determine DBA applicability and insert the correct clause in solicitations and contracts.
- Contractors: Must comply with the insurance requirements specified in the applicable clause.
- Agencies: Ensure oversight and compliance with insurance coverage for overseas workers.
Practical Implications
- This section ensures overseas contract workers are protected by appropriate insurance, reducing risk for both contractors and the government.
- Failure to include the correct clause can result in noncompliance and potential liability for worker injuries.
- Contractors should verify which clause applies to their contract and secure the required insurance coverage.
(a) The contracting officer shall insert the clause at 52.228-3, Workers’ Compensation Insurance (Defense Base Act), in solicitations and contracts when the Defense Base Act applies (see 28.305) and-
(1) The contract will be a public-work contract performed outside the United States; or
(2) The contract will be approved or financed under the Foreign Assistance Act of1961 (Pub.L.87-195) and is not excluded by 28.305(b)(2).
(b) The contracting officer shall insert the clause at 52.228-4, Worker’s Compensation and War-Hazard Insurance Overseas, in solicitations and contracts when the contract will be a public-work contract performed outside the United States and the Secretary of Labor waives the applicability of the Defense Base Act (see 28.305(d)).