Government Contracts Alert

    View Authors June 2010

    Federal contractors who enter into federal contracts of at least US$100,000 and subcontractors performing work necessary to the primary covered contract greater than US$10,000 are required to post a US Department of Labor (DOL) notice informing employees of their rights under the National Labor Relations Act (NLRA).

    The DOL issued final regulations implementing Executive Order 13496, which requires the inclusion of the posting requirement in all federal contracts entered into or modified after June 21, 2010. The DOL poster notifies employees of their rights to form, join and assist a union and to engage in collective bargaining with their employer. The notice also provides examples of illegal conduct by employers and unions, and instructs employees to contact the National Labor Relations Board if they believe their rights have been violated. The posted notice must be prominently displayed in plants and offices where employees covered by the NLRA perform contract-related activity including all places where notices to employees are customarily posted. Additionally, contractors or subcontractors who customarily post notices to employees electronically must post the required notice electronically by prominently displaying a link to the Notice of Employee Rights Under Federal Labor Laws Poster on any website maintained and customarily used for notices to employees about terms and conditions of employment.

    The poster and notice provisions may be downloaded from the DOL’s Office of Labor-Management Standards website, or you can request a copy from olms-public@dol.gov or by calling +1.202.693.0123.  

    Violation of the Executive Order may subject a federal contractor or subcontractor to sanctions including suspension or cancelation of currently held contracts and debarment from future contracts and subcontracts.  

    For further information regarding this topic, please contact your principal Squire Sanders lawyer or one of the individuals listed in this Alert.