Government Contracts Monitor

New Regulation Requires Contractors to Post Labor Rights Notices

May 27, 2010

On June 21, 2010, federal agencies will begin using contract clauses requiring contractors to post new workplace notices informing employees of their rights under federal labor laws. The Department of Labor’s recent final rule implements Executive Order 13496, which President Obama issued soon after taking office.  

The Obama policy revoked Executive Order 13201 and reversed the Bush Administration’s approach to employee notification of labor rights. In lieu of the previous requirement that employers notify employees of their right to not join a union, the new rule requires employers to provide notice that explains the affirmative rights of employees to organize and bargain collectively with their employers. The required notice must also (1) describe illegal activity on the part of the employer; (2) explain illegal activity on the part of union representatives; and (3) explain who to contact if any of these rights have been violated.

 

Key aspects the Final Rule include:

 

• Who does the rule apply to? The regulation applies to all contractors and subcontractors in any tier except for collective bargaining agreements, contracts valued at less than the simplified acquisition threshold, and subcontracts valued at $10,000 or less. In some cases, the Office of Labor-Management Standards may exempt Government agencies from the requirement that they include the clause in their contracts from. 

 

• What specific information must the notice include? The required notice informs employees that they have the right to organize, form, join or assist a union; bargain collectively, discuss terms and conditions, and take action with co-workers to improve working conditions; strike and picket; and to choose not participate in any of these activities.  It further explains that employers cannot prohibit solicitation for the union during non-work time; threaten, question, fire, demote, or transfer employees because of union participation; provide incentives not to join a union; prohibit wearing union apparel; or spy on union activities and gatherings.

 

• How must the notice be displayed?  The regulation requires that every contractor and subcontractor physically post the notice in a “conspicuous” place so that it is prominent and readily seen by employees. Additionally, if a contractor or subcontractor customarily posts notices electronically, it must also post this notice electronically. And if the contractor or subcontractor employs a significant number of employees that do not speak English, the required notification must be supplied in the language of those employees as well. 

 

• How can the notice be obtained? Contractors can obtain a copy of the notice from the contracting agency or download the notice from the Department of Labor’s website using this link.

 

• How will the rule be enforced? The Director of the Office of Federal Contract Compliance Programs (OFCCP) may conduct compliance evaluations. If a violation is found, the OFCCP will attempt to secure compliance through conciliation. If compliance is still not achieved, OFCCP may initiate administrative enforcement proceedings.

 

Like the Executive Order it implements, the Final Rule both aims to ensure that government contracts are performed by contractors whose work will not be interrupted by “labor unrest,” and demonstrates the Obama Administration’s continuing support of organized labor, including in government procurement.