Federal Government Contractors and Subcontractors Must Notify Employees of Their Labor Rights

On May 20, 2010, the Department of Labor (DOL) issued a final rule requiring certain Federal Government contractors and subcontractors to notify employees of their rights under Federal labor laws. The new “Employee Labor Rights Notice” replaces the “Beck Notice” requirement, which the Obama Administration repealed in January 2009. The new Notice advises employees of their right to organize and bargain collectively with their employers and of their protection from certain types of employer and union misconduct. Failure to post the Notice may result in administrative enforcement proceedings.

Notification Requirements

The final rule requires certain contractors and subcontractors to post the Employee Labor Rights Notice both physically and electronically:

• Employers must physically post the Notice in conspicuous places in the contractor’s plants and offices so that it can readily be seen by employees covered by the National Labor Relations Act. A copy of the poster in English and other languages may be downloaded from the DOL Office of Labor-Management Standards Web site at http://www.olms.dol.gov.
• Employers who customarily post notices to employees by electronic means must do the same for this Notice. The electronic posting must include a link to the DOL Web site that contains the full text of the poster, and must include the words, “Important Notice about Employee Rights to Organize and Bargain Collectively with their Employers.”

Implementation

The Government will implement the new requirement by incorporating in solicitations a clause requiring the contractor to post the Notice. The clause will also require the contractor to “flow-down” the Notice clause to certain subcontractors who perform work under a Government prime contract.

Application

The Government will include the Employee Labor Rights Notice clause in solicitations issued on or after June 19, 2010 for contracts at or above the Simplified Acquisition threshold, which is currently $100,000. Prime contractors awarded contracts pursuant to such solicitations will be required to post the Notice and will be required to incorporate the clause in any subcontracts of $10,000 or more issued under the prime contract.

Seyfarth Shaw’s Labor & Employment and Government Contracts Practice Groups regularly counsel clients on compliance matters. Our Government Contract Compliance Handbook (4th ed. Thomson West) has been a primary resource for clients in developing and implementing contract compliance programs for more than 20 years. Should you have any questions about this One Minute Memo, please contact the Seyfarth Shaw attorney with whom you work, or any Government Contracts attorney on our website.