Amendments to the Walsh-Healey Public Contracts Act

Section 6502 of title 41, United States Code, is amended— (1) by striking A contract made by an agency and inserting (a) In general.—A contract made by an agency; (2) in subsection (a)(3), by striking No individual under 16 years of age and no incarcerated individual and inserting the following: (A) Incarcerated individuals No incarcerated individual; (3) by adding at the end the following: (B) Children No individual under 16 years of age will be employed by the contractor, or any subcontractor or supplier of the contractor, in any activity at any tier under the contract, including any activity under a subcontract at any tier of the contract. No individual 16 or 17 years of age will be employed by the contractor, or any subcontractor or supplier of the contractor, in oppressive child labor, as defined under section 3(l) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(l)), in any activity at any tier under the contract, including any activity under a subcontract at any tier of the contract.; and (4) by adding at the end the following: (b) Children (1) Good faith defense for secondary liability A contractor shall not be in breach or violation of a representation or stipulation required under subsection (a)(3)(B) due to the actions of a subcontractor or supplier at any tier of the contract if the contractor— (A) entered into a contract with the prime subcontractor or supplier in a good faith reliance on a written assurance from the subcontractor or supplier that all subcontractors and suppliers at any tier of the contract would not, in any activity under the contract, including any activity under a subcontract at any tier of the contract, employ an individual under 16 years of age or employ an individual 16 or 17 years of age in oppressive child labor (as defined under section 3(l) of the Fair Labor Standards Act of 1938); (B) had no notice that a subcontractor or supplier would so employ an individual; and (C) has taken meaningful and affirmative steps to ensure that all subcontractors and suppliers at any tier of the contract would not so employ an individual. (2) Successors in interest (A) In general Notwithstanding any other provision in this chapter, for purposes of subsection (a)(3)(B) and any other provision in this chapter administering or enforcing a stipulation or representation required under such subsection— (i) the term contractor includes a successor in interest of the contractor; (ii) the term party responsible for a breach or violation, in the case of a contractor, includes a successor in interest of the contractor; and (iii) the term person, in the case of a contractor, includes a successor in interest of the contractor. (B) Joint and several liability A contractor that is a successor in interest of another contractor in breach or violation of a representation or stipulation required under subsection (a)(3)(B) shall be jointly and severally liable under this chapter with such other contractor for such breach or violation. (C) Definition of successor in interest In this paragraph, the term successor in interest, with respect to a contractor, means any person who— (i) uses substantially the same facilities or workers to offer substantially the same goods or services as the contractor; (ii) employs as a managing agent any individual who was responsible for wages, hours, or working conditions as the contractor; or (iii) (I) has an owner, partner, officer, or director who is an immediate family member of an owner, partner, officer, or director of the contractor; and (II) is in the same industry as the contractor..