The new notice must be posted for all covered government contracts or subcontracts that result from solicitations issued after June 21, 2010.  Go to the DOL’s website  for more specific information about the size and placement of the notice and about possible electronic posting.  Click here to see a sample of the new notice.  Please note that the notice posted must be at least 11″ by 17″.  Covered government contracts will mandate that  the prime contractor require subcontractors performing services or goods under the covered contract for $10,000 or more to also post this notice.

Prime contracts for less then $100,000 or those for work performed exclusively outside the U.S. do not required the posting of  this notice.  The notice requirement does not apply to contracts resulting from solicitations issued prior to June 21, 2010.

This notice has an extensive explanation of workers’ rights to organize and take collective action. It also sets forth examples of  adverse conduct by an employer (or a union) against an employee that would be  unlawful under the NLRA.  It  informs employees of possible remedies that can be ordered by the NLRB to correct unlawful conduct and tells them how to contact the NLRB to file a charge. 

This new Executive Order also revoked an Executive Order by President George W. Bush that federal contractors had to post informing employees of their rights concerning the payment of union dues or fees

In our January 19, 2009 post, we set out the key provisions of this legislation from the prior effort to pass it in Congress.  This bill will essentially allow unions to organize workers on the basis of the workers signing union authorization cards and will, in effect, obviate the usual process of the NLRB holding a secret ballot election on the issue of union representation.  Additionally, the original bill set a short timetable for bargaining the first union contract and provided for binding arbitration when the parties had not reached an agreement within the proscribed time limits.

This new legislation contains essentially the same provisions of the prior EFCA bill.  There will be a vigorous campaign within Congress by unions and employers over this legislation.   It is too early to predict what will be contained in the final version of this important piece of legislation.

In the coming months you will be reading about this legislative battle in the papers and hearing about it from the broadcast media, since it is a “hot button” topic for many interest groups.

It is currently expected that the process of trying to enact this legislation may take until sometime this summer before it goes to a final vote.  However, Senate leadership has announced that they intend to try to have it voted on after the Easter recess.  We will keep you advised of further significant developments.

Nondisplacement of Qualified Workers Under Service Contracts -  this Executive Order provides for the continuation of employment of employees who are working pursuant to a service contract with the federal government, when that contract is awarded to a new contractor or subcontractor who will be performing the same or similar services at the same location.  The successor contractor and/or subcontractor will be required to offer the existing nonmanagerial and nonsupervisory employees the right to continue their employment under the new contract before being permitted to hire other employees.  The Order exempts certain contracts and permits a contracting agency to exempt other contracts or subcontracts if the agency determines that the application of these rules would impair their ability to procure services on an economic and efficient basis.

Notification of Employee Rights Under Federal Labor Laws -  this Executive Order requires all federal contractors and subcontractors to post a notice in all places where employees covered by the National Labor Relations Act work, informing them of their rights under the federal labor laws.  The Secretary of the U.S. Department of Labor has 120 days to initiate rulemaking to specify the size, form and contents of this notice, which is to be posted during the term of the contract.

Economy in Government Contracting -  this Executive Order requires that costs associated with activities undertaken to persuade employees to exercise or not exercise their rights to bargain collectively through representatives of their own chosing (e.g. unions) should be treated as “unallowable” and a federal contractor may not be reimbursed for such costs.  The Federal Acquisition Regulatory Council has 150 days to adopt rules and regulations needed to implement this Order.