New anti-human trafficking rules to come.

• Author: Jack, William M.
• Position: Ethics Corner

* A new presidential executive order released on Sept. 25 enhanced anti-trafficking compliance obligations covering federal contractors. "Strengthening Protections Against Trafficking in Persons In Federal Contracts" requires the government to take steps to amend the Federal Acquisition Regulation by March 25.

Human trafficking is defined as the subjection of men, women, or children to exploitative conditions, including sex trafficking or the recruitment or obtaining a person for labor using force, fraud, or coercion that effects involuntary servitude.

The FAR's existing anti-human trafficking clause is required in all solicitations and contracts, and flowed down to all subcontractors, and bars contractors and subcontractors from engaging in trafficking in persons, procuring commercial sex acts, or using forced labor to perform a covered contract.

Contractors for some time have been required to inform employees of the government's zero-tolerance, anti-trafficking policy and to promptly notify contracting officers of any known or suspected trafficking violations by the contractor or its subcontractors and suppliers.

A violation of these existing requirements can result in mandated removal of employees from a government contract, default termination of a subcontract, suspension of contract payments, loss of award fee, default termination of the prime contract, or suspension or debarment.

The new executive order expands the definition of prohibited trafficking to include the use of misleading or fraudulent recruitment practices in recruiting employees, for example: Failing to disclose basic information or making material misrepresentations as to key terms and conditions of employment, including wages and fringe benefits, location of work, living conditions and housing--if employer provided or arranged--any major costs to be charged to the employee, and, if applicable, the hazardous nature of the work.

They cannot charge employees recruitment fees or destroy, conceal, confiscate, or otherwise deny access by an employee to the employee's identity documents, such as passports or drivers' licenses.

Failing to pay return transportation costs at the end of employment for a non-national employee working away from home--with certain limited exceptions--may also be a violation.

Contractors and subcontractors will also be required to "cooperate fully in providing reasonable access" to allow agencies to conduct audits or investigations of compliance with...