DOL Issues Final Rule on Employee Rights Notice
Federal Contractors have new poster and contract clause requirements
For immediate release – May 27, 2010
For more information, contact Shannon Craig-Mulvaney at 585-381-8340 ext. 127
On May 20, 2010, the Department of Labor issued a final rule on the Notification of Employee Rights Under Federal Labor Laws. The rule stems from Executive Order 13496, issued by President Obama on January 30, 2009. The Executive Order was “designed to promote economy and efficiency in Government procurement” by ensuring work performed under federal government contracts “will not be interrupted by labor unrest.” Under the rule, federal contractors are required to display a new poster and include an additional clause in their purchase orders and subcontracts. Both are intended to ensure that workers are informed of their rights under the National Labor Relations Act.
The rule applies to federal contractors and subcontractors, at any tier. Exempted from the requirements are prime contractors whose contracts are valued below $100,000 annually and subcontractors whose contracts are valued below $10,000 annually.
Federal agencies will require compliance by including a clause in their contracts beginning June 21, 1010. Once a federal contractor or subcontractor receives a contract containing the clause, they will be required to: (1) include the clause in subcontracts for all contract-related activity and (2) display a poster as prescribed by the Department of Labor.
The clause can be found at 29 CFR Part 471, Appendix A to Subpart A. It is acceptable to include the clause by reference rather than adding the full text to purchase orders and subcontracts.
The poster is available at http://www.dol.gov/olms/regs/compliance/EO13496.htm. Although currently only available in English, the Department of Labor plans to translate the poster into Spanish and other languages as needed. The poster must be displayed in plants and offices where employees covered by the National Labor Relations Act engage in federal contract-related activities. If an employer typically posts employee notices both physically and electronically, this poster must also be displayed both physically and electronically.
This rule will be enforced by the Office of Federal Contract Compliance Programs. If a violation is found, the contractor or subcontractor will first be asked to enter into a conciliation agreement under which they agree to comply with the rule. If necessary, further penalties include loss of contracts and debarment.
The full text of this rule is available at http://edocket.access.gpo.gov/2010/pdf/2010-11639.pdf. HR Works, Inc. is currently updating AAP documents and resources to reflect this new requirement. Affirmative action clients will receive additional information and updates in June. If clients have compliance concerns in the meantime, they can contact their affirmative action project manager at (585) 381-8340.
