SB 920 seeks to ensure federal contractors comply with child-labor laws by mandating new representations and certifications in federal procurement processes and linking noncompliance to contractor exclusion. The bill creates a framework for identifying violations, requiring corrective actions, and suspending or debaring entities that fail to fix deficiencies.
It also raises civil penalties for child-labor violations and establishes training and oversight provisions to improve enforcement. The core aim is to close gaps in supply-chain accountability within federal contracting.
At a Glance
What It Does
The FAR Council would amend the FAR within 18 months to require annual representations about past child-labor violations and extend certifications to subcontractors. Offerors must certify, to the best of knowledge, whether violations occurred in the prior three years, and must obtain similar certifications from their subcontractors. Agencies would be barred from awarding contracts to entities that fail to implement corrective measures and would refer violators for suspension and debarment.
Who It Affects
Executive agencies that award contracts, prime contractors, and subcontractors engaged in federal procurements. Compliance officers and procurement officials would gain new duties around reporting, certification, and corrective-action coordination.
Why It Matters
This framework shifts accountability into the contract formation and supply chain, creating enforceable consequences for noncompliance and providing a clearer pathway to identify and remedy violations before or during contract performance.
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What This Bill Actually Does
The bill changes how the federal government approaches child-labor violations in contracted work. It directs the Federal Acquisition Regulation Council to require contractors to report any past child-labor violations over the previous three years and to certify, for themselves and for any subcontractors they intend to use, whether violations have occurred.
The certification process is designed to surface noncompliant suppliers early and prevent them from securing federal work until they implement corrective measures. If a firm says it has no violations but later is found to have violated, the government can suspend or debar them from future contracts.
The bill also enhances penalties for child-labor violations under the Fair Labor Standards Act, increases the scope of training for agency staff, and orders a GAO study on how widespread these violations are among federal contractors. Finally, it requires annual reporting to Congress on enforcement activity and public posting of these results.
The Five Things You Need to Know
Within 18 months, the FAR Council must amend the FAR to require annual representations about past child-labor violations for entities entering executive agency contracts.
Offerors must certify, to the best of knowledge, whether violations occurred in the prior three years, and must obtain similar certifications from each subcontractor involved in the contract.
Agencies may not award contracts to entities that fail to implement corrective measures after violations or to offerors relying on noncompliant subcontractors.
A list of ineligible entities will be created and used to suspend or debar contractors from federal contracting for at least four years.
Civil penalties for child-labor violations under the FLSA are increased to $100,000 and $500,000, with training requirements for staff and a GAO study on prevalence of violations.
Section-by-Section Breakdown
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Definitions and scope
This section defines key terms used throughout the bill, including 'appropriate committees of Congress,' 'executive agency,' and 'Secretary' (the Secretary of Labor). It also sets the jurisdictional frame for how the act will be implemented within federal procurement. The definitions establish who is bound by the new representations and certifications and who will oversee their enforcement.
Promotion of Workplace Accountability
Section 3 is the core enforcement mechanism. It requires the FAR Council to amend regulations to require annual representations of past child-labor violations and to extend certification requirements to subcontractors. It also prohibits awarding contracts to entities that fail to implement corrective measures and to offerors that rely on noncompliant subcontractors, while outlining procedures to refer entities for suspension and debarment and to coordinate with the Secretary on corrective actions.
Civil Penalties for Violations
This section updates the civil penalties tied to child-labor violations under the Fair Labor Standards Act. It increases the penalties to $100,000 and $500,000 for applicable violations, with the changes applying to violations occurring after enactment. The adjustment signals a tougher financial deterrent to deter noncompliance.
Training on Child Labor Violations
Section 5 directs the Secretary to establish training programs for relevant personnel at the Department of Labor and other agencies to improve identification and prevention of child-labor violations. The training focuses on recognizing indicators of noncompliance and implementing preventive measures within federal contracting workflows.
GAO Study
Section 6 requires the Comptroller General to study the prevalence of child-labor violations among federal contractors and provide a report to Congress within two years. The study aims to quantify the scope of noncompliance and inform future policy refinements.
No Additional Funds
This short provision states that no new funds are authorized to carry out the act. It indicates that any enforcement and administrative activities must be funded within existing appropriations.
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Explore Employment in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Federal contracting agencies and procurement officers gain clearer, enforceable controls to assess contractor compliance and to mitigate supply-chain risks.
- Prime contractors that maintain compliant supply chains benefit from a level playing field and potentially fewer last-minute corrections or reputational risks.
- Subcontractors with clean records gain competitive advantage by aligning with compliant prime contractors and avoiding debarment risk.
- Labor rights advocates and workers in contractor supply chains see stronger protections and more transparent enforcement.
- The U.S. Department of Labor gains new training and enforcement tools to identify and prevent child-labor violations.
Who Bears the Cost
- Noncompliant entities facing affirmative representations and mandatory corrective measures, along with potential debarment, bear direct enforcement costs.
- Contractors with extensive or complex supply chains may incur higher compliance costs to verify subcontractors’ histories.
- Federal procurement offices must allocate time and resources to implement and monitor new representations, certifications, and corrective actions.
- The cost of reporting and transparency requirements is borne by agencies and contractors, though no new funds are authorized.
- Smaller vendors may experience disproportionate burdens in adapting systems for new certifications and documentation.
Key Issues
The Core Tension
Balancing aggressive enforcement with practical compliance: how to deter child-labor violations without imposing undue burden on small businesses or penalizing entities for uncertain or unverified past conduct.
The bill pushes enforcement into the contracting process, tying contractor eligibility to past violations and corrective actions. While this approach strengthens child-labor protections, it also raises questions about administrative burden, the accuracy of past-violation representations, and the potential for overbroad debarments to disrupt legitimate suppliers.
Ensuring timely, accurate information and proportionate penalties will be essential to avoid chilling legitimate competition or creating bottlenecks in federal procurement. The act relies on effective coordination between agencies, timely certifications, and robust data-sharing, which could be challenging across multiple agencies and contractors.
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