New Bill Mandates Child Labor Disclosure for Federal Contractors, Boosts Penalties to $500K

This proposed legislation, the Preventing Child Labor Exploitation in Federal Contracting Act, takes aim at companies doing business with the government. The core idea? Make federal contractors accountable for child labor violations, not just within their own walls, but also down their supply chain.

Full Disclosure: New Rules for Contractors

The bill introduces a significant new requirement: companies seeking federal contracts must annually report any violations of child labor laws under the Fair Labor Standards Act (specifically section 12) that occurred within the past three years. This isn't just about their direct operations; it explicitly includes violations by their subcontractors (Sec. 3). Think about a large construction firm bidding on a federal project – they'd now need to vouch for the labor practices of all the smaller outfits they hire for electrical, plumbing, or other specialized work.

If a company does report a violation, they aren't automatically out. However, a federal agency can't award them a contract unless the Secretary of Labor has signed off on corrective actions taken by the company (Sec. 3). Companies that try to hide violations or fail to report face serious consequences, including potential suspension or debarment from federal contracting altogether, plus financial penalties under the False Claims Act (Sec. 3).

Upping the Ante: Harsher Penalties

Beyond disclosure, the bill significantly increases the financial sting for child labor violations across the board, whether related to federal contracts or not. The maximum civil penalty for each violation jumps dramatically, from the current $11,000 up to $100,000. For violations leading to the serious injury or death of a child, the maximum penalty skyrockets from $50,000 to $500,000 (Sec. 4). These new penalty levels apply to violations happening on or after the date the act becomes effective.

Training and Oversight: Building Capacity

Recognizing that rules need enforcement, the bill mandates the Secretary of Labor to develop training programs (Sec. 5). These aren't just for Labor Department staff; they extend to personnel in other federal agencies, including Health and Human Services and Homeland Security, equipping them to better identify and report potential child labor abuses they might encounter.

Additionally, the Government Accountability Office (GAO) is tasked with conducting a two-year study specifically looking into child labor violations among federal contractors (Sec. 6). This aims to provide a clearer picture of the problem's scope within government procurement.

The Fine Print: Funding and Implementation

One crucial detail tucked away at the end: the bill explicitly states that no additional funds are authorized to carry out these new requirements (Sec. 7). This raises practical questions about how agencies, particularly the Department of Labor, will manage the increased workload of reviewing disclosures, negotiating corrective actions, maintaining a public list of violators, and developing new training programs without dedicated new resources.