42570 Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Rules and Regulations 

Standards Act, this rule applies when the 

contract exceeds the micro-purchase 

threshold, as defined in FAR 2.101. When 

performance is in part within and in part 

outside the United States, the rule applies to 

the part of the contract or subcontract 

performed within the United States. Data 

available through the Federal Procurement 

Data System (FPDS) for Fiscal Year 2015, 

reveals contracts were awarded to 18,874 

unique small business vendors for services, 

which contained the FAR clause at 52.222– 

41, Service Contract Labor Standards. 

Additionally, contracts were awarded to 

6,753 unique small business vendors for 

construction, which contained the FAR 

clause at 52.222–6, Construction Wage Rate 

Requirements, for a total of 25,627 unique 

small businesses. 

The DOL final rule identifies records to be 

kept by all firms, including small entities (29 

CFR 13.25). Some records are already 

required under the Fair Labor Standards Act, 

Service Contract Labor Standards statute, the 

Wage Rate Requirements (Construction) 

statute, and their governing regulations. DOL 

noted in their final rule (81 FR 67598 at 

67669) that OMB assigned control number 

1235–0029 for the recordkeeping 

requirements related to paid sick leave. The 

information collection requirement under 

1235–0029 includes recordkeeping and 

regulatory familiarization. 

Regarding initial implementation, DOL 

assumed firms that need to create a sick leave 

policy will each spend 10 hours of time 

developing this policy, regardless of the 

number of employees, and firms with a 

program in place will spend one hour, 

regardless of the number of employees. DOL 

also stated in its final rule that ‘‘Transfers 

from small contractors and costs to small 

contractors in Year 1 are less than 0.02 

percent of revenues on average and are no 

more than 0.17 percent in any industry’’. 

Therefore, according to DOL its final rule 

would not have a significant impact on small 

businesses. This FAR rule finalizes the 

interim rule without change and neither 

increases nor decreases the cost of the 

interim rule (81 FR 91627), which has been 

in effect since January 1, 2017. 

There are no known significant alternatives 

to the rule that would accomplish the stated 

objectives of the E.O. and DOL regulation. In 

its final rule, DOL introduced several 

changes and clarifications that may ease the 

compliance burden. For instance, DOL 

provided greater detail and clarity about how 

companies with paid time off policies can 

use those policies to satisfy their obligations 

under the E.O. In addition, if a collective 

bargaining agreement (CBA) ratified before 

September 30, 2016, applies to an employee’s 

work performed on or in connection with a 

covered contract and provides at least 56 

hours of paid sick time each year, the 

employee will be exempted from the 

requirements of the E.O. and 29 CFR part 13 

until CBA termination or January 1, 2020, 

whichever is earlier. 

The rule was also modified to allow 

employers to meet the requirements of this 

rule through multiemployer plans or other 

funds, plans, or programs. This may ease the 

burden for those employers in industries 

with transitory or mobile workforces. 

Interested parties may obtain a copy 

of the FRFA from the Regulatory 

Secretariat Division. The Regulatory 

Secretariat Division has submitted a 

copy of the FRFA to the Chief Counsel 

for Advocacy of the Small Business 

Administration. 

VI. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. Chapter 35) applies. However, 

the information collection requirements 

to the paperwork burden were 

previously approved for the DOL 

regulations under OMB Control 

Numbers 1235–0018, Records to be kept 

by Employers—Fair Labor Standards 

Act, 1235–0021, Employment 

Information Form, and 1235–0029, 

Government Contractor Paid Sick Leave. 

List of Subjects in 48 CFR Parts 1, 11, 

22, and 52 

Government procurement. 

Dated: July 31, 2018. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Interim Rule Adopted as Final Without 

Change 

■ Accordingly, the interim rule 

amending 48 CFR parts 1, 11, 22, and 

52 which was published in the Federal 

Register at 81 FR 91627 on December 

16, 2016, is adopted as a final rule 

without change. 

[FR Doc. 2018–17824 Filed 8–21–18; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 22, and 52 

[FAC 2005–100; FAR Case 2016–007; Item 

II; Docket No. 2016–0007; Sequence No. 1] 

RIN 9000–AN10 

Federal Acquisition Regulation: NonRetaliation for Disclosure of 

Compensation Information 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA 

adopted as final, without change, an 

interim rule amending the Federal 

Acquisition Regulation (FAR) to 

implement Executive Order (E.O.), NonRetaliation for Disclosure of 

Compensation Information. The interim 

rule also implemented a final rule 

issued by the Department of Labor. 

DATES: Effective: August 22, 2018. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Zenaida Delgado, Procurement Analyst, 

at 202–969–7207 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat Division at 

202–501–4755. Please cite FAC 2005– 

100, FAR Case 2016–007. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

81 FR 67732 on September 30, 2016, to 

implement E.O. 13665, Non-retaliation 

for Disclosure of Compensation 

Information. The E.O. was signed April 

8, 2014, and was published in the 

Federal Register at 79 FR 20749 on 

April 11, 2014. E.O. 13665 amends E.O. 

11246 to provide for a uniform policy 

for the Federal Government to prohibit 

Federal contractors from discriminating 

against employees and job applicants 

who inquire about, discuss, or disclose 

their own compensation or the 

compensation of other employees or 

applicants. The interim FAR rule also 

implemented the final rule issued by the 

Office of Federal Contract Compliance 

Programs (OFCCP) of the Department of 

Labor (DOL) to implement E.O. 13665. 

The DOL final rule, entitled 

‘‘Government Contractors, Prohibitions 

Against Pay Secrecy Policies and 

Actions’’, was published in the Federal 

Register at 80 FR 54934, on September 

11, 2015. The DOL rule revises 41 CFR 

part 60–1. Two respondents submitted 

comments on the interim FAR rule. 

II. Discussion and Analysis 

The Civilian Agency Acquisition 

Council and the Defense Acquisition 

Regulations Council (the Councils) 

reviewed the public comments in the 

development of the final rule. A 

discussion of the comments is provided 

as follows: 

A. Summary of Significant Changes 

There are no changes to the interim 

rule. 

B. Analysis of Public Comments 

Comment: Both respondents strongly 

supported the interim FAR rule. Both 

respondents stated that the interim rule 

is necessary to bring an end to pay 

secrecy policies and practices that 

perpetuate discrimination, including the 


amozie on DSK3GDR082PROD with RULES2
Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Rules and Regulations 42571 

gender pay gap. The respondents also 

presented rationale as to why the 

interim rule will benefit businesses, 

individual workers, and the economy. 

Response: Noted. 

III. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563, Improving 

Regulation and Regulatory Review, 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This is not 

a significant regulatory action and, 

therefore, was not subject to review 

under section 6(b) of E.O. 12866, 

Regulatory Planning and Review, dated 

September 30, 1993. This rule is not a 

major rule under 5 U.S.C. 804. 

IV. Executive Order 13771 

This rule is not subject to E.O. 13771, 

Reducing Regulation and Controlling 

Regulatory Costs, because this rule is 

not a significant regulatory action under 

E.O. 12866. 

V. Regulatory Flexibility Act 

DoD, GSA, and NASA have prepared 

a Final Regulatory Flexibility Analysis 

(FRFA) consistent with the Regulatory 

Flexibility Act, 5 U.S.C. 601 et seq. The 

FRFA is summarized as follows: 

DoD, GSA, and NASA are converting to a 

final rule, without change, an interim rule 

that amended the Federal Acquisition 

Regulation (FAR) to implement Executive 

Order (E.O.) 13665, Non-Retaliation for 

Disclosure of Compensation Information. 

E.O. 13665 amended E.O. 11246, Equal 

Opportunity in Federal Employment. The 

interim rule also implemented a final rule 

issued by the Department of Labor (DOL) at 

41 CFR part 60–1, published in the Federal 

Register at 80 FR 54934, on September 11, 

2015. 

The objective of this rule is to provide for 

a uniform policy for the Federal Government 

to prohibit Federal contractors from 

discriminating against employees and job 

applicants who inquire about, discuss, or 

disclose their own compensation or the 

compensation of other employees or 

applicants. 

No public comments were received in 

response to the initial regulatory flexibility 

analysis. 

The rule will apply to all entities, both 

small and other than small. Based on the 

most current System for Award Management 

data available, defining small as fewer than 

500 employees, then there are 328,552 small 

contractor firms. Defining small as firms with 

less than $35.5 million in revenue, then there 

are 315,902 small contractor firms. Thus, the 

total number of small contractor firms that 

may be impacted by the rule range from 

315,902 to 328,552. 

Recordkeeping and reporting requirements 

of the interim rule involved regulatory 

familiarization and administrative costs 

associated with incorporating revised 

language into policies, instructions, notices 

to employees, and subcontracts. In 

implementing the additional prohibition, the 

interim rule required that contractors and 

subcontractors disseminate the 

nondiscrimination provision, using language 

prescribed by the Director of the Office of 

Federal Contract Compliance Programs 

(OFCCP), including incorporating the 

nondiscrimination provision into existing 

employee manuals and handbooks and 

posting it electronically or in conspicuous 

places available to employees and applicants. 

An analysis of estimated costs of the 

regulatory changes was performed in the 

DOL final rule published in the Federal 

Register at 80 FR 54934, on September 11, 

2015. However, this final rule does not have 

any impact on small entities, because the 

interim rule has already been in effect since 

September 30, 2016, and the final rule does 

not make any changes to the interim rule. 

DoD, GSA, and NASA are not aware of any 

significant alternatives to the rule that would 

accomplish the stated objectives of the E.O. 

and the DOL implementing regulations. 

It is necessary for the rule to apply to small 

entities, because E.O. 11246, as amended, 

applies to all contracts above $10,000 that are 

not completely exempted. Every effort has 

been made to minimize the burdens imposed. 

Interested parties may obtain a copy 

of the FRFA from the Regulatory 

Secretariat Division. The Regulatory 

Secretariat Division has submitted a 

copy of the FRFA to the Chief Counsel 

for Advocacy of the Small Business 

Administration. 

VI. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 35) does apply; however, 

the information collection authorization 

is under the DOL final rule issued by 

the OFCCP of the DOL, which was 

published in the Federal Register at 80 

FR 54934, on September 11, 2015, 

entitled ‘‘Government Contractors, 

Prohibitions Against Pay Secrecy 

Policies and Actions’’, and is assigned 

Office of Management and Budget 

(OMB) Control Number 1250–0008. This 

information collection expires 

December 31, 2018. The other 

information collection requirements 

cited at 1.106 that apply to FAR clause 

52.222–26, assigned OMB control 

numbers 1250–0001 and 1250–0003, 

cover the general recordkeeping 

provisions of the laws administered by 

OFCCP. 

List of Subjects in 48 CFR Parts 1, 22, 

and 52 

Government procurement. 

Dated: July 31, 2018. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Interim Rule Adopted as Final Without 

Change 

■ Accordingly, the interim rule 

amending 48 CFR parts 1, 22, and 52, 

which was published in the Federal 

Register at 81 FR 67732 on September 

30, 2016, is adopted as a final rule 

without change. 

[FR Doc. 2018–17826 Filed 8–21–18; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 2, 4, 5, 6, 7, 8, 9, 14, 16, 

17, 18, 19, 22, 23, 25, 28, 31, 36, 41, 49, 

52, and 53 

[FAC 2005–100; Item III; Docket No. 2018– 

0002; Sequence No. 1] 

Federal Acquisition Regulation; 

Technical Amendments 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: This document makes 

amendments to the Federal Acquisition 

Regulation (FAR) in order to make 

editorial changes and to update web 

links. 

DATES: Effective: August 22, 2018. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Lois Mandell, Regulatory Secretariat 

Division (MVCB), 1800 F Street NW, 

2nd Floor, Washington, DC 20405, 202– 

501–4755. Please cite FAC 2005–100, 

Technical Amendments. 

SUPPLEMENTARY INFORMATION: In order to 

update certain elements in 48 CFR parts 

2, 4, 5, 6, 7, 8, 9, 14, 16, 17, 18, 19, 22, 

23, 25, 28, 31, 36, 41, 49, 52, and 53 this 

document makes editorial changes to 

the FAR. 

List of Subjects in 48 CFR Parts 2, 4, 5, 

6, 7, 8, 9, 14, 16, 17, 18, 19, 22, 23, 25, 

28, 31, 36, 41, 49, 52, and 53 

Government procurement. 


amozie on DSK3GDR082PROD with RULES2