Surety Bond Quarterly - Spring 2016 - (Page 22)

Feature EVOLVING COMPLIANCE REQUIREMENTS: Addressing Human Trafficking AS SET FORTH in the Winter 2015 edition of Surety Bond Quarterly, federal government contractors must comply with various contract requirements, such as limitations on the ability to subcontract and requirements on the wages paid to employees. Contractors' failure to comply with these requirements places contractors at serious risk, with liability under the civil False Claims Act, suspension, debarment, and contract termination. This article addresses the new compliance obligations relating to human trafficking and is the second in a series of articles that address the hot topic of federal government contract compliance. Most federal construction contractors hear the term "human trafficking" and immediately believe that their businesses have nothing to do with the practice and that they should not be concerned with the issue. Nothing could be further from the truth. While human trafficking may not be on most construction contractors' radar screens, recent developments in federal policies and procurement regulations should have all contractors paying particular attention to this quickly developing topic. Recent amendments to the Federal Acquisition Regulation, in addition to the President's announced intent to enforce these regulations, mean that contractors must take affirmative actions to comply with the law in this area and mitigate their risk for non-compliance. Set forth below is a discussion of important federal regulations addressing human trafficking in federal procurement of which surety professionals and their contractors should be aware, two case studies that highlight the importance of complying with current human trafficking policies and legislation, and conclusions for surety professionals and their contractors. A. Anti-Human Trafficking Compliance Requirements are Stringent In recent years, the federal government has taken a keen interest in identifying and preventing human trafficking, with the government identifying human trafficking as both sex trafficking and labor trafficking. With the goal of preventing human trafficking, the government has identified a number of activities that are associated with human trafficking, and the government has chosen to advance its stated policy of preventing trafficking by imposing restrictions on contractors. In 2015, the Federal Acquisition Regulation (FAR) Council issued a final anti-trafficking rule that prohibits contractors from engaging in certain activities. Under the FAR, contractors must adhere to a "zero-tolerance policy" that prohibits them or their subcontractors' employees from (1) engaging 22 SURETY BOND QUARTERLY | SPRING 2016 BY W. BARRON A. AVERY

Table of Contents for the Digital Edition of Surety Bond Quarterly - Spring 2016

NASBP Upcoming Meetings & Events
2015-2016 Executive Committee
From the CEO – It’s Spring and a Season of Change for Surety
Practical Insights: What You Need to Know – Joint Ventures in Construction
Making a Difference: NASBP Members support Breakthrough in Trauma Treatment for Vets
Susan Hecker Recognized for Contribution to Heavy-Construction Industry
Evolving Compliance Requirements: Addressing Human Trafficking
Subcontractor Surety Bonding and Default Insurance
Managing Subcontractor Risks of Non-Performance and Financial Failure
SDI Insured Must Shoulder Burden to Pursue Claims Against CGL Policy
One Contractor’s Transfer Preference: Subcontractor Bonds
Facilitating International Commercial Surety

Surety Bond Quarterly - Spring 2016