42568 Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket No. FAR 2018–0001, Sequence No. 

4] 

Federal Acquisition Regulation: 

Federal Acquisition Circular 2005–100; 

Introduction 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Summary presentation of final 

rules. 

SUMMARY: This document summarizes 

the Federal Acquisition Regulation 

(FAR) rules agreed to by the Civilian 

Agency Acquisition Council and the 

Defense Acquisition Regulations 

Council (Councils) in this Federal 

Acquisition Circular (FAC) 2005–100. A 

companion document, the Small Entity 

Compliance Guide (SECG), follows this 

FAC. The FAC, including the SECG, is 

available via the internet at http://

www.regulations.gov. 

DATES: For effective dates see the 

separate documents, which follow. 

FOR FURTHER INFORMATION CONTACT: The 

analyst whose name appears in the table 

below in relation to the FAR case. 

Please cite FAC 2005–100 and the 

specific FAR case number. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat Division at 202– 

501–4755. 

RULES LISTED IN FAC 2005–100 

Item Subject FAR case Analyst 

I ......... Paid Sick Leave for Federal Contractors ....................................................................................................... 2017–001 Delgado. 

II ........ Non-Retaliation for Disclosure of Compensation Information ........................................................................ 2016–007 Delgado. 

III ....... Technical Amendments.

SUPPLEMENTARY INFORMATION: 

Summaries for each FAR rule follow. 

For the actual revisions and/or 

amendments made by these rules, refer 

to the specific item numbers and 

subjects set forth in the documents 

following these item summaries. FAC 

2005–100 amends the FAR as follows: 

Item I—Paid Sick Leave for Federal 

Contractors (FAR Case 2017–001) 

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.) 13706 

and a Department of Labor final rule 

issued on September 30, 2016, both 

entitled Establishing Paid Sick Leave for 

Federal Contractors. The rule requires 

contractors to allow all employees 

performing work on or in connection 

with a contract covered by the E.O. to 

accrue and use paid sick leave in 

accordance with E.O. 13706 and 29 CFR 

part 13. Contracting officers will include 

a clause in covered contracts. This FAR 

rule neither increases nor decreases the 

cost of the interim rule (81 FR 91627), 

which has been in effect since January 

1, 2017. 

Item II—Non-Retaliation for Disclosure 

of Compensation Information (FAR 

Case 2016–007) 

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, 

signed April 8, 2014, amended E.O. 

11246, Equal Opportunity in Federal 

Employment. The interim FAR rule also 

implemented a final rule issued by the 

Office of Federal Contract Compliance 

Programs (OFCCP) of the Department of 

Labor, entitled Government Contractors, 

Prohibitions Against Pay Secrecy 

Policies and Actions, which was 

published on September 11, 2015. 

E.O. 11246, originally issued 

September 24, 1965, establishes 

nondiscrimination and affirmative 

action obligations in employment for 

Federal contractors and subcontractors. 

It prohibits employment discrimination 

because of race, color, religion, sex, 

sexual orientation, gender identity, and 

national origin. E.O. 13665 amends E.O. 

11246 and its Equal Opportunity Clause 

by incorporating, as a covered 

prohibition, discriminating against 

employees and job applicants who 

inquire about, discuss, or disclose the 

compensation of the employee or 

applicant or another employee or 

applicant. Federal contractors and 

subcontractors must disseminate this 

nondiscrimination provision, using 

language prescribed by the Director of 

OFCCP, including incorporating the 

provision into existing employee 

manuals or handbooks and posting it. 

There is no significant impact on small 

entities imposed by the FAR rule. 

Item III—Technical Amendments 

Editorial changes and updates to web 

links are made at FAR 2.101, 4.1603, 

4.1702, 5.102, 5.201, 5.207, 5.704, 5.705, 

6.305, 7.103, 7.105, 7.107–4, 8.405–6, 

8.501, 8.602, 9.406–3, 9.407–3, 14.201– 

2, 16.505, 17.502–1, 18.205, 19.704, 

19.1503, 22.001, 22.404–3, 22.1001, 

22.1021, 22.1022, 22.1304, 23.202, 

23.203, 23.205, 23.401, 23.405, 23.802, 

25.003, 25.703–2, 28.106–1, 28.106–3, 

28.203–3, 28.204–3, 31.205–6, 36.104, 

36.700, 41.301, 49.602, 52.208–8, 

52.212–1, 52.212–3, 52.212–5, 52.213–4, 

52.219–9, 52.222–6, 52.222–8, 52.222– 

30, 52.222–31, 52.222–32, 52.222–41, 

52.222–43, 52.223–17, 52.225–5, 

52.225–18, 52.225–25, 52.228–11, 

52.243–1, 52.244–6, 53.000, 53.102, 

53.209–1, 53.228, 53.249 and subpart 

53.3. 

Dated: July 31, 2018. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Federal Acquisition Circular (FAC) 2005– 

100 is issued under the authority of the 

Secretary of Defense, the Administrator of 

General Services, and the Administrator for 

the National Aeronautics and Space 

Administration. 

Unless otherwise specified, all Federal 

Acquisition Regulation (FAR) and other 

directive material contained in FAC 2005– 

100 is effective August 22, 2018. 


amozie on DSK3GDR082PROD with RULES2
Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Rules and Regulations 42569 

Dated: August 1, 2018. 

Shay D. Assad, 

Director, Defense Pricing/Defense 

Procurement and Acquisition Policy. 

Dated: August 14, 2018. 

Jeffrey A. Koses, 

Senior Procurement Executive/Deputy CAO, 

Office of Acquisition Policy, U.S. General 

Services Administration. 

Dated: August 2, 2018. 

William G. Roets, II, 

Acting Assistant Administrator, Office of 

Procurement, National Aeronautics and 

Space Administration. 

[FR Doc. 2018–17822 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, 11, 22, and 52 

[FAC 2005–100; FAR Case 2017–001, Item 

I; Docket No. 2017–0001; Sequence No. 1] 

RIN 9000–AN27 

Federal Acquisition Regulation; Paid 

Sick Leave for Federal Contractors 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA are 

adopting as final, without change, an 

interim rule amending the Federal 

Acquisition Regulation (FAR) to 

implement the Executive Order (E.O.), 

Establishing Paid Sick Leave for Federal 

Contractors. 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 2017–001. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

81 FR 91627 on December 16, 2016, to 

implement E.O. 13706, Establishing 

Paid Sick Leave for Federal Contractors. 

The E.O. was signed September 7, 2015, 

and was published in the Federal 

Register at 80 FR 54697 on September 

10, 2015. The E.O. seeks to increase 

efficiency and cost savings in the work 

performed by parties who contract with 

the Federal Government by ensuring 

that employees on those contracts can 

earn up to 7 days or more of paid sick 

leave annually, including paid sick 

leave for family care. The interim FAR 

rule also implemented the final rule 

issued by the Wage and Hour Division 

of the Department of Labor (DOL) to 

implement E.O. 13706. The DOL final 

rule, entitled ‘‘Establishing Paid Sick 

Leave for Federal Contractors’’, was 

published in the Federal Register at 81 

FR 67598 on September 30, 2016. Seven 

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 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: Six respondents strongly 

supported the interim FAR rule. The 

respondents stated that the interim rule 

is necessary to guarantee more workers 

the job and economic security that paid 

sick days provide, reduce workplace 

contagion, and increase productivity 

and retention. The respondents also 

presented rationale as to why the 

interim rule will benefit businesses, 

individual workers, taxpayers, and the 

economy. 

Response: Noted. 

Comment: One respondent provided a 

scenario and asked whether in that 

instance the contract was subject to the 

requirements of this FAR rule. The 

respondent described a contract action 

extending the term of the contract by 

exercising an option adjusting the price 

for escalations in labor rates. 

Response: According to DOL (see 

Notice of Proposed Rulemaking, 81 FR 

9592, published February 25, 2016), 

unilateral exercise of a contract option 

that has pre-negotiated prices that are 

subject to adjustment due to escalation 

in labor rates is not a new contract 

covered by E.O. 13706, as implemented 

in the DOL rule and FAR rule, as long 

as no bilateral negotiations occur (other 

than any necessary to determine and 

effectuate those pricing adjustments). 

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.) 13706, Establishing Paid Sick 

Leave for Federal Contractors, dated 

September 7, 2015, and associated 

Department of Labor (DOL) regulatory 

requirements at 29 CFR part 13. DOL 

published a final regulatory flexibility 

analysis in their final rule (81 FR 67598 at 

67703). 

The FAR rule established requirements for 

contractors under contracts containing the 

clauses at FAR 52.222–6, Construction Wage 

Rate Requirements, or FAR 52.222–41, 

Service Contract Labor Standards, i.e., 

‘‘covered contracts,’’ to allow employees to 

accrue and use paid sick leave in accordance 

with E.O. 13706 and 29 CFR part 13. 

Contractors must also include a paid sick 

leave contract clause in covered subcontracts 

and require covered subcontractors to 

include the substance of the clause in 

covered lower-tier contracts. 

No public comments were received in 

response to the initial regulatory flexibility 

analysis. 

This rule applies to contracts and 

subcontracts at all tiers covered by the 

Service Contract Labor Standards statute, or 

the Wage Rate Requirements (Construction) 

statute, which require performance in whole 

or in part within the United States. For 

procurement contracts where employees’ 

wages are governed by the Fair Labor 


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