Beginning on June 21, 2010, federal contractors and subcontractors that enter into new federal contracts, subcontracts or make modifications to existing contracts must post a notice informing employees of their rights under the National Labor Relations Act (“NLRA”). Executive Order 13496 applies to all federal government contracts and subcontracts for the purchase, sale, or use of personal property or non-personal services. The government contracts must exceed $100,000 and subcontracts must exceed $10,000. Contracts and subcontracts for work performed exclusively outside of the United States, as well contracts and subcontracts exempted by the Secretary of Labor, do not fall under the provisions of the Executive Order.

Contents of the Required Notice
The notice required by the Executive Order sets forth the employees’ rights under the NLRA to organize and bargain collectively with employers, and their right to engage in protected concerted activity. The notice also sets forth the types of employer and union actions the NLRA considers illegal, as well as the contact information for the National Labor Relations Board. The required notice may be obtained from www.dol.gov or any field office of the DOL’s Office of Labor-Management Standards and must be in 11×17 size.

How to Comply:
You must display the required notice in conspicuous places in and about the plants and offices where it can be readily seen by employees engaged in activities related to the performance of the contract. The notice must be posted everywhere notices to employees about employment conditions are posted and not just where legal notices are placed.

If you customarily use electronic means to post notices, you must prominently post this notice on websites you customarily use. The electronic notice must include a link to the Department of Labor’s (“DOL”) website that contains the full text of the poster. The link must read, “Important Notice about Employee Rights to Organize and Bargain Collectively with Their Employers.” If electronic means are used, you must also physically post the notice in the workplace. The notice must be provided in the language spoken by a significant portion of your workforce.

Additionally, the Executive Order requires that federal contracts and subcontracts include certain prescribed language (the “employee notice clause”). The employee notice clause requires employers to comply with the notice requirement. The prescribed language does not need to be copied into a contract, but may instead be made a part of the contract by reference to 29 CFR Part 471, Appendix A to Subpart A.

Consequences for Non-Compliance:
The Office of Federal Contract Compliance Programs (“OFCCP”) is responsible for investigating employee and other complaints alleging non-compliance with the Executive Order. If you fail to comply with the Executive Order, your contract may be cancelled, terminated, or suspended. In addition, an order of debarment preventing you from entering into further government contracts may be issued.