28.309
Contract clauses for workers’ compensation insurance
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.