Federal Contractors Face Additional Restrictions

August 5th, 2010 by

A new law requires federal contractors and subcontractors to post notices regarding employee rights under the National Labor Relations Act (NLRA). Effective June 21, 2010, federal contractors must display notices to all employees explaining their rights under federal labor laws throughout the term of the contract.

The regulations require federal contractors to post the notices in “conspicuous places in and about its plants and offices” at all locations where employees “engage in activities relating to the performance of the contract.” The posters must be physically and electronically displayed. This new law also requires federal contractors to insert conditions in their subcontracts that require subcontractors to submit to the same posting requirements. This rule only applies to contractors under the Simplified Acquisition Threshold of $100,000 and subcontractors below $10,000.

These notice posters will outline the employee’s right to form and join labor unions, to bargain collectively through one representative, to discuss terms and conditions of employment with co-workers, to strike, and their right to not partake in any of the behaviors listed.

The Office of Federal Contract Compliance Programs (OFCCP) is responsible for enforcing this new law and ensuring that all complaints are investigated. In order to submit a complaint, an employee must file a written complaint to the Office of Labor Management Standards (OLMS). Penalties for violating the Executive Order may include cancellation, suspension or termination of the contract or subcontract. Punishments also can include debarment of the employer from future federal contracts or subcontracts until there has been demonstration of compliance with the new ruling.

The required poster can be downloaded directly from the Federal & State Posters page on CAI’s website.

Please call a member of CAI’s Advice and Counsel Team at (919) 878-9222 or (336) 668-7746 with questions on how this new law affects your organization.

Photo Source: steakpinball

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