Want A Federal Government Contract? Now You Must Join The Fight Against Human Trafficking

On September 25, 2012, President Obama signed a groundbreaking Executive Order designed to strengthen protections against trafficking in persons in federal contracting. Among other requirements, the Executive Order requires federal contractors and subcontractors to take the following actions:

Certifications. File formal annual certifications confirming that neither they nor their employees engaged in any trafficking-related activities, and, if violations were identified, that they took appropriate remedial and referral action. Prevention. Take steps to ensure that their employees do not engage in trafficking-related activities. Compliance Plans. Develop and maintain detailed compliance plans if they have contracts exceeding $500 million and involving services to be performed abroad. Self-Reporting. Self-report any activities that are "inconsistent with" the Executive Order. "We're making clear that American tax dollars must never, ever be used to support the trafficking of human beings," President Obama, referring to the Executive Order, said at yesterday's Clinton Global Initiative. "We will have zero tolerance. We mean what we say. We will enforce it."

Background

More than 20 million men, women and children worldwide are victims of severe forms of trafficking in persons. Companies around the world are taking steps to eliminate the potential for trafficked labor in their operations and supply chains. The U.S. government—the world's largest single purchaser of goods and services—is now attempting to take a more active role by conscripting federal contractors and subcontractors to join the fight.

The Executive Order is intended to strengthen the efficacy of the U.S. government's long-standing "zero-tolerance policy" on trafficking in persons by directing the Federal Acquisition Regulatory (FAR) Council, in coordination with various agencies, to amend the FAR within 180 days to:

Prohibit All Government Contractors, Subcontractors and Their Employees From Engaging in Trafficking-Related Activities

Highlighted prohibited activities include:

Engaging in misleading or fraudulent recruitment practices, such as by making material misrepresentations regarding the key terms and conditions of employment (including wages and fringe benefits, the location of work, living conditions and housing). Charging employees recruitment fees. Destroying, concealing or confiscating employee identity documents, such as passports or driver's licenses. Failing to pay...