On May 20, 2010, the Department of Labor issued final rules implementing Executive Order 13496, which requires certain federal contractors and subcontractors to post notices regarding employee rights under the National Labor Relations Act (“NLRA”).  The final rules set forth the content of the required notice, provide guidance on how the notice is to be posted and otherwise communicated to employees, identify which federal contractors and subcontractors are required to post the notices, and explain how the Department of Labor will enforce the posting requirements.

Under the final rules, federal agencies must, with very few exceptions, include a clause mandating the posting of the employee labor law notice in all contracts for the purchase, sale, or use of personal property (including off-the-shelf commercially available items) or nonpersonal services (for example, utilities, insurance, and construction) that are solicited on or after June 21, 2010 and that are for an amount in excess of $100,000.  The employee notice clause must be included in each subcontract of any tier that is necessary to the performance of the federal contract and that is for an amount in excess of $10,000.

The final rules set forth the precise content of the notice that covered contractors and subcontractors must post.  The notice states in very general terms the rights of employees under the NLRA and lists examples of conduct by employers and by unions that is prohibited by the NLRA.  The notice also contains contact information for the National Labor Relations Board.  In addition to specifying the content of the required notice, the final rules provide guidance as to the form of the notice and the manner of posting it.

The new final rules authorize the Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”) to conduct compliance evaluations to determine whether covered contractors and subcontractors are properly posting the employee notice and including the employee notice clause in their subcontracts.  The rules also authorize the employees of a covered contractor or subcontractor to file noncompliance complaints with the OFCCP or the Office of Labor-Management Standards (“OLMS”).  Remedies for noncompliance include compliance orders, contract termination or suspension, and debarment from future federal contracts.

For a more detailed discussion of the final rules and their impact on employers, see the Kilpatrick Stockton Legal Alert on this subject accessible by clicking here.