On May 20, 2010, the Department of Labor published final regulations relative to the labor law rights of employees who work for federal contractors. Entitled “Notification of Employee Rights Under Federal Labor Laws,” the new regulations require covered government contractors and subcontractors to post a notice advising employees of their rights under the National Labor Relations Act (NLRA), such as their right to form, join or assist in a union and to otherwise engage in certain protected activities. The regulations implement President Obama’s Executive Order 13496 signed shortly after he took office on January 30, 2009. Although the regulations are effective on June 19, 2010, contractors do not need to post the employee rights notice until a new federal contract is signed or modified.
The notice specifically outlines employees’ rights under the NLRA and provides examples of unlawful employer conduct as well as unlawful union conduct. Under the new regulations, primary contractors must take active steps to ensure that their subcontractors comply with the rule. For instance, primary contractors must have language in their subcontracts requiring subcontractors to post the notice. The rule does not apply to subcontracts of less than $10,000.
The rule adopts a widespread posting requirement, mandating that the notice be posted wherever employees perform work related to the performance of the contract. Like other required notices, this notice must be posted prominently in conspicuous locations where employees are likely to see it. However, the Department of Labor has significantly expanded the scope of the posting requirement by requiring that it be posted wherever employees “perform work that contributes to or furthers the performance of the contract, or work whose omission would impede the contract’s performance.” Examples of this work include employees who are “assuring quality control and security; storing the goods after production; delivering them to the government; hiring, paying, and providing personnel services for the employees engaged in contract-related work; keeping financial and accounting records; performing related office and clerical tasks; and supervising or managing the employees engaged in such tasks.”
Contractors who customarily post notices electronically must post this notice electronically as well. Additionally, if a contractor employs a large number of employees who are not proficient in English, the contractor must post the notice in a language that they can understand.
The National Labor Relations Board has exclusive adjudicatory authority over any disputes involving the substantive provisions of the required notice. Failure to comply with the regulations can result in debarment from federal contracts.
The final regulations can be accessed by clicking here. The required notice can be accessed by clicking here.