Informs contractors of applicable labor and employment laws they must comply with.
Applicability: Applies to all contracts when required by statute.
Key Requirements
Comply with Fair Labor Standards Act minimum wage and overtime requirements
Follow Davis-Bacon Act prevailing wage requirements if applicable
Comply with Immigration Reform and Control Act employment verification
Maintain records of labor compliance for audit
Common Issues & Pitfalls
Not understanding prevailing wage requirements for service contracts
Bidding without accounting for prevailing wage in cost estimates
Failing to verify employment authorization for project staff
Not maintaining wage and hour records for inspection
Contractor Guidance for Your Bid
Labor compliance is expensive and non-negotiable. If bidding a service contract over $2,500, check whether prevailing wage (Davis-Bacon) applies. Many contractors lose money on their first federal labor contracts because they underestimate wage and record-keeping costs. Build in compliance costs upfront or you'll eat the difference.
Related FAR Clauses
Frequently Asked Questions
What are the key requirements for FAR 52.222-1: Notice to Offerors of Labor Laws?
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Informs contractors of applicable labor and employment laws they must comply with. Applies to all contracts when required by statute.
When does FAR 52.222-1 apply to a federal contract?
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Applies to all contracts when required by statute.
What are the most common compliance issues with FAR 52.222-1?
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Not understanding prevailing wage requirements for service contracts Bidding without accounting for prevailing wage in cost estimates Failing to verify employment authorization for project staff Not maintaining wage and hour records for inspection
How should contractors approach FAR 52.222-1 in their proposals?
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Labor compliance is expensive and non-negotiable. If bidding a service contract over $2,500, check whether prevailing wage (Davis-Bacon) applies. Many contractors lose money on their first federal labor contracts because they underestimate wage and record-keeping costs. Build in compliance costs upfront or you'll eat the difference.
What related FAR clauses should contractors review alongside FAR 52.222-1?
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Contractors reviewing FAR 52.222-1 should also study related clauses: 52-222-2, 52-222-3. Understanding how these clauses interact helps avoid compliance gaps that can trigger contract disputes or disqualify bids.
What happens if a contractor fails to comply with FAR 52.222-1?
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Non-compliance with FAR 52.222-1 can result in contract termination for default, withholding of payments, debarment proceedings, or False Claims Act liability. Contracting officers typically issue a cure notice before termination. Contractors should consult with a contract attorney if they receive a cure notice related to this clause.