In January 2009, President Obama signed Executive Order13496, entitled "Notification of Employee Rights UnderFederal Law." Among other things, this Executive Orderrequired that federal contractors and subcontractors informtheir employees of rights under the National LaborRelations Act ("NLRA") to form or join a union and bargaincollectively with an employer. The President also orderedthat, with some exceptions, every government contractmust include provisions requiring federal contractors topost a notice regarding employee rights under the NLRA.Similarly, government contractors must include provisionsmandating the posting of the notice of employee rights in allsubcontracts.
The U.S. Department of Labor’s Office of Labor-Management Standards ("OLMS") recently promulgatedregulations to implement and enforce the President’sExecutive Order. See 29 C.F.R. Part 471 (Federal Register,May 20, 2010). The OLMS regulations take effect on June21, 2010. The new regulations do not apply to: (a) govern-ment contracts resulting from solicitations issued before theeffective date of the regulations; (b) contracts and subcon-tracts for work performed exclusively outside of the territo-rial United States; (c) subcontracts of $10,000 or less invalue; or (d) government contracts for purchases under thesimplified acquisition threshold (currently $100,000) as setby Congress under the Office of Federal ProcurementPolicy Act.
In connection with the new regulations, the OLMS hasreleased a new Notice (please see attachment A to view theOLMS Notice), which, starting on June 21, 2010, must beposted conspicuously by federal contractors and subcon-tractors in plants and offices where employees covered bythe NLRA perform government contract-related activity,including in all places where notices to employees are cus-tomarily posted. If a "significant portion" of the workforce isnot proficient in English, the contractor must provide anotice in the language spoken by the employees. To thisend, the Department of Labor will be printing the noticeform in other languages. The Notice informs employees oftheir right to organize and bargain collectively with theiremployers and to engage in other protected concertedactivity. It also contains examples of illegal conduct byemployers and unions, and provides employees with con-tact information for the National Labor Relations Boardshould they have questions or require assistance in theevent of a violation of their rights. Additional informationabout this new Notice requirement is contained in an OLMSFact Sheet (please see attachment B to view the OLMSFact Sheet).
FEdEraL CoNtraCtors — NEw workpLaCE postiNG
rEqUirEmENt EFFECtivE JUNE 21, 2010
By Thomas F. Doherty
For further information, please contact:
Daniel J. Kelly
Government Contracts
617.449.6526
Bonnie A. Vanzler
Government Contracts
617.449.6501
Patrick J. Bannon
Labor & Employment Law
617.449.6529
Thomas F. Doherty
Labor & Employment Law
973.639.2078
Brian G. Leary
Labor & Employment Law
617.449.6514
John M. McKelway Jr.
Labor & Employment Law
617.449.6560
Peter D. Roberts
Labor & Employment Law
203.399.5910
Adam N. Saravay
Labor & Employment Law
973.639.2023
Richard Voigt
Labor & Employment Law
860.275.6776
Labor & EmpLoymENt Law //
GovErNmENt CoNtraCts aLErt
www.mccarter.com
JUNE 2010
David Himelfarb
Government Contracts
617.449.6555
M. Carolina Avellaneda
Labor & Employment Law
617.449.6565
Patrick M. Collins
Labor & Employment Law
212.609.6849
Amy Haberman
Labor & Employment Law
203.399.5950
Christopher S. Mayer
Labor & Employment Law
973.848.5393
Pamela J. Moore
Labor & Employment Law
860.275.6714
973.849.4094
Berin S. Romagnolo
Labor & Employment Law
617.449.6585
Salvador Simao
Labor & Employment Law
973.639.2051
Peter D. Stergios
Labor & Employment Law
212.609.6848
Disclaimer by McCarter & English, LLP: This publication is for informational purposes only and is not offered as legal advice as to any par-ticular matter. No reader should act on the basis of this publication without seeking appropriate professional advice as to the particular factsand applicable law involved.© 2010 McCarter & English, LLP. All Rights Reserved.
OLMS Fact Sheet Obligation of Federal Contractors to Notify Employees of Their Rights Under Federal Labor Laws Pursuant to Executive Order 13496 and its implementing regulations, 29 C.F.R. Part 471, Federal con-tractors and subcontractors, beginning on June 21, 2010, must notify employees about their rights under the National Labor Relations Act (NLRA). The NLRA is the primary law governing relations between unions and employers in the private sector, and guarantees the right of employees to organize and to bargain collectively with their employers, and to engage in other protected concerted activity with or without a union, or to refrain from all such activity. Additionally, Federal contracts and subcon-tracts must include a provision requiring Federal contractors and subcontractors to post the notice. Content of Notice The required notice lists employees’ rights under the NLRA to form, join, and support a union and to bargain collectively with their employer; pro-vides examples of unlawful employer and union conduct that interferes with those rights; and indi-cates how employees can contact the National Labor Relations Board, the federal agency that enforces those rights, with questions or to file complaints. The text of the employee notice and the provisions that must be inserted into federal contracts and subcontracts can be found at 29 CFR Part 471 Ap-pendix A. Exceptions to Posting Requirements The posting requirements do not apply to prime contracts under the Simplified Acquisition Threshold, which is currently set at $100,000, and do not apply to subcontracts below $10,000. Obtaining the Required Posters
Contractors and subcontractors can acquire the poster from: (1) the Federal contracting depart-ments and agencies; (2) the Department of Labor’s Office of Labor-Management Standards (OLMS) at (202) 693-0123 or www.olms.dol.gov; or (3) field offices of the Department of Labor’s OLMS or Office of Federal Contract Compliance Pro-grams (OFCCP).
Physical and Electronic Posting Contractors and subcontractors must post the employee notice conspicuously in and around their plants and of-fices so that it is prominent and readily seen by employees. In particular, contractors and subcontrac-tors must post the notice where other notices to employees about their jobs are posted.
Additionally, contractors and subcontractors who post notices to employees electronically must also post the required notice electronically via a link to the OLMS website. When posting electronically, the link to the notice must be placed where the contractor customarily places other electronic notices to employees about their jobs. The link can be no less prominent than other employee notices. Electronic posting cannot be used as a substitute for physical posting. Acquiring Translated Posters
Where a significant portion of a contractor's or subcon-tractor’s workforce is not proficient in English, they must provide the employee notice in languages spoken by employees. OLMS will provide translations of the employee notice that can be used to comply with the physical and electronic posting requirements. Filing Complaints Alleging Non-Compliance
Employees may file complaints with the Department about contractors and subcontractors who do not com-ply with the Labor Department’s posting requirements or do not include the notice provision in contracts and subcontracts. Complaints should be sent to OLMS or OFCCP at 200 Constitution Avenue, NW., Washington, DC 20210, or to any OLMS or OFCCP field office.
Complaints must be in writing and include:
1. the employee’s name, address, and tele-phone number;
2. the name and address of the contractor al-leged to have violated the requirements;
3. an identification of the alleged violation and the establishment or construction work site;
4. any other pertinent information to assist the investigation; and
5. the signature of the employee filing the complaint.
Investigations and Sanctions for Non-Compliance OFCCP may conduct evaluations to determine compli-ance. Contractors who violate the regulations may be subject to sanctions for non-compliance, including sus-pension or cancellation of an existing contract; debarment from future Federal contracts and subcon-tracts; and inclusion on a list published and distributed by the Director of OLMS to all executive agencies list-ing the names of contractors and subcontractors declared ineligible for future contracts as a result of non-compliance with these requirements. A contractor will have an opportunity for a hearing and an appeal before the imposition of any sanctions.
Office of Labor-Management Standards Field Offices Atlanta, GA Dallas, TX Kansas City, MO New Orleans, LA San Francisco, CA Birmingham, AL Denver, CO Los Angeles, CA New York, NY Seattle, WA Boston, MA Detroit, MI Miami, FL Newark, NJ Tampa, FL Buffalo, NY Grand Rapids, MI Milwaukee, WI Philadelphia, PA Washington, DC Chicago, IL Guaynabo, PR Minneapolis, MN Phoenix, AZ Cincinnati, OH Honolulu, HI Nashville, TN Pittsburgh, PA Cleveland, OH Houston, TX New Haven, CT St. Louis, MO For the address and telephone number of our field offices, please consult local telephone directory listings under United States Government, Labor Department, Office of Labor-Management Standards, or view our online organizational listing at http://www.dol.gov/olms/contacts/lmskeyp.htm.
OLMS Office of Labor-Management Standards
U.S. Department of Labor May 2010
Visit us at www.olms.dol.gov
E-mail us at [email protected] Call the DOL National Call Center at 1.866.487.2365
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