DOL Issues Rule Requiring Federal Contractors and Subcontractors to Notify Employees of Union Organizing Rights

In a move applauded by organized labor, the United States Department of Labor (DOL) recently issued a rule requiring federal contractors and subcontractors to notify employees of their rights under the National Labor Relations Act (NLRA). The rule takes effect on June 21, 2010, and implements Executive Order No. 13496, which was signed by President Obama on January 30, 2009.

The notice requires federal contractors and subcontractors to inform employees of their right to join unions. In addition, the notice advises employees that they have the right to participate in concerted activity, such as strikes, to improve working conditions. The notice also spells out other types of prohibited employer and union conduct, such as:

Employer Prohibitions

• Questioning employees about their union support or activities;
• Taking adverse employment actions against employees who support and/or join unions;
• Threatening to close the workplace if employees choose a union to represent them; and
• Prohibiting employees from wearing union hats, buttons, t-shirts and pins in the workplace.

Union Prohibitions

• Threatening employees with the loss of their job if they do not support the union;
• Refusing to process a grievance because the employee is not a member of the union; and
• Causing or attempting to cause an employer to discriminate against an employee because of union-related activity.

The rule requires contractors/subcontractors to physically post the notice in "conspicuous places" throughout the workplace and jobsite so the notice is prominent and readily seen by employees. The rule also mandates contractors and subcontractors to post the notice electronically or provide a link to the notice on the DOL's website if the contractor/subcontractor customarily posts electronic notices to its employees. When a significant portion of the contractor's/subcontractor's employees do not speak proficient English, the contractor/subcontractor must provide the notice in the language spoken by its employees.

The rule's posting requirements do not apply to contracts under the current simplified acquisition threshold of $100,000 or subcontracts below $10,000. The Director of the Office of Federal Contract Compliance Programs (OFCCP) will conduct evaluations to ensure contractors/subcontractors are in compliance with this rule. In addition, employees may file complaints with the Office of Labor-Management Standards (OLMS) and OFCCP if the employee notice is not posted. The failure to comply with the rule's requirements could result in the cancellation, termination or suspension of the existing contract. Non-compliant contractors may also be declared ineligible for new federal contracts.

Posters of the required employee notice can be downloaded from the OLMS website at http://www.dol.gov/olms.

Contact counsel if you should have any questions about these new DOL requirements.