Preventing Child Labor Exploitation in Federal Contracting Act
- Bill Number
- S. 920
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-03-10: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2026-06-11T20:50:12Z
AI-Generated Summary
Purpose
The Preventing Child Labor Exploitation in Federal Contracting Act aims to strengthen enforcement of child labor laws under the Fair Labor Standards Act (FLSA) by requiring federal contractors and subcontractors to disclose violations, imposing stricter penalties for non-compliance, and promoting accountability in federal procurement to prevent child exploitation in government-related work.
Key Provisions
- Representations and Certifications: The Federal Acquisition Regulation (FAR) must be updated within 18 months to require annual disclosures from contractors about any child labor violations (under FLSA Section 12, which prohibits oppressive child labor) in the past three years, including from subcontractors. Offerors must certify this information and cannot receive contracts if violations exist without corrective actions.
- Corrective Measures and Ineligibility List: Entities with violations must negotiate fixes with the Secretary of Labor (DOL) to avoid placement on an annual list of ineligible entities. Those on the list face suspension or debarment (temporary exclusion from federal contracts) for at least four years, enforced via the System for Award Management.
- Penalties for Non-Disclosure: Knowingly failing to report violations is illegal, leading to debarment proceedings and penalties under the False Claims Act (which addresses fraud against the government, including fines up to three times the damages plus additional penalties).
- Increased Civil Penalties: Amends FLSA to raise fines for child labor violations from $11,000 to $100,000 per violation and from $50,000 to $500,000 for repeated or reckless cases, effective for violations after enactment.
- Training Programs: Requires DOL to create training for its staff and other agencies (e.g., Health and Human Services, Homeland Security) on spotting and preventing child labor violations.
- Reporting and Oversight: DOL must submit annual public reports to Congress on the list, corrective actions, contract values involved, and the Act's effectiveness. The Government Accountability Office (GAO) must study child labor violations among federal contractors within two years and report findings.
- Funding: No new federal funds are authorized; implementation uses existing resources.
Significant Changes to Existing Law
- FAR Amendments: Introduces mandatory child labor certifications in federal contracting, expanding beyond current general labor compliance requirements to specifically target child labor disclosures and subcontractor vetting.
- FLSA Modifications: Boosts civil penalties significantly (nearly tenfold in some cases) and alters how penalties are applied (removing prior exceptions tied to other laws). Adds a new section (18E) for inter-agency training on child labor enforcement.
- Debarment Procedures: Aligns child labor violations with standard federal suspension/debarment rules (FAR Subpart 9.4), but mandates annual lists and minimum four-year exclusions, creating a more systematic exclusion process than before.
Potential Impacts
- Government Agencies: Executive agencies (e.g., those procuring goods/services) will face stricter procurement rules, potentially slowing bidding processes but improving compliance screening. DOL gains new negotiation and listing roles, while other agencies receive mandatory training, enhancing overall enforcement capacity without extra funding.
- Citizens and Workers: Protects children from exploitative labor in federal supply chains, potentially reducing violations in industries like agriculture or manufacturing. Adult workers may benefit indirectly from better oversight of labor practices.
- International Relations: Minimal direct impact, but could affect U.S. contractors operating abroad if violations occur in international operations, signaling stronger U.S. commitment to global child labor standards (e.g., aligning with International Labour Organization conventions).
Main Stakeholders Affected
- Federal Contractors and Subcontractors: Must comply with disclosures, face potential contract losses, and implement corrections, increasing administrative burdens especially for small businesses.
- Department of Labor (DOL): Leads implementation, negotiations, list preparation, and reporting, with expanded enforcement authority.
- Executive Agencies: All agencies awarding contracts (e.g., Defense, Homeland Security) must enforce certifications and avoid ineligible entities.
- Children and Labor Advocates: Primary beneficiaries through reduced exploitation risks.
- Congress: Receives oversight reports from DOL and GAO to monitor effectiveness.
- Offerors and Service Providers: Broadly includes any entities bidding on or supporting federal contracts.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances FLSA enforcement by integrating it into federal procurement, potentially increasing False Claims Act lawsuits for non-disclosure. Debarment procedures must follow due process standards to avoid challenges, as exclusions impact business rights.
- Constitutional: Raises questions of fair notice and property interests (e.g., Fifth Amendment due process in debarments), but aligns with existing contractor responsibility rules upheld in courts.
- Political: Bipartisan sponsorship (Sens. Hawley and Booker) underscores cross-party concern over child labor, potentially setting a precedent for tying social protections to federal spending. No new funding limits fiscal expansion but may strain agency resources, inviting debates on implementation feasibility.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-03-10: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2025-03-10: Introduced in Senate
Bill Versions
- Preventing Child Labor Exploitation in Federal Contracting Act — issued 2025-03-10 — PDF (11 pages)