What are the applicable labor laws governing DOD contracts issued in US to American Firm but performance is overseas like Asia, Afghanistan, Iraq, Kuwait if workers are from other ocuntries?
Answer, great question; one we’ve covered in varying degrees over the years here in the AAP archives. The basic/simple answer is that the local, host nation, labor laws will apply to workers to local nationals and third country nationals. U.S. Labor Law may apply to U.S. citizen contract employees depending on their status of “Authorized to Accompany the Force”; see DFARS 225.74.
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If you review FAR Part 22 (Application of Labor Laws…) you will notice that almost all of them do not apply when performance is outside the United States (note: the FAR has multiple definitions of “outside the United States”). This makes sense if you think about it; because DBA and SCA wages are set by the U.S. Department of Labor (DOL) and they are prevailing wages in the geographic area where the work is performed. DOL has no jurisdiction in determining prevailing wages outside of the U.S. and its territories or enforcing it.
The best guidance for your particular scenario is: PGI 236.273 Construction in foreign countries.
“(b) When a technical working agreement with a foreign government is required for a construction contract—
(i) Consider inviting the Army Office of the Chief of Engineers, or the Naval Facilities Engineering Command, to participate in the negotiations.
(ii) The agreement should, as feasible and where not otherwise provided for in other agreements, cover all elements necessary for the construction that are required by laws, regulations, and customs of the United States and the foreign government, including—
(A) Acquisition of all necessary rights;
(B) Expeditious, duty-free importation of labor, material, and equipment;
(C) Payment of taxes applicable to contractors, personnel, materials, and equipment;
(D) Applicability of workers' compensation and other labor laws to citizens of the United States, the host country, and other countries;
(E) Provision of utility services;
(F) Disposition of surplus materials and equipment;
(G) Handling of claims and litigation; and
(H) Resolution of any other foreseeable problems that can be appropriately included in the agreement.
Other sources include: FAR 25.3, DFARS 225.7014 and DFARS 236.273