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 


amozie on DSK3GDR082PROD with RULES2
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 


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