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New Federal Posting Requirement For Federal Contracts And Subcontracts Applies To Financial Institutions
Pursuant to Executive Order 13496, dated January 30, 2009, and the Department of Labor’s implementing regulations at 29 C.F.R. Part 471, as of June 21, 2010, federal contractors and subcontractors must notify employees about their rights under the National Labor Relations Act (“NLRA”). A reversal of prior policy relating to the posting of federal labor laws in federal contractors’ and subcontractors’ workplaces, federal contractors and subcontractors will now be required to post a prescribed employee notice conspicuously in offices where employees covered by the NLRA perform contract-related activity, including all places where notices to employees are customarily posted physically and electronically.
Federal contractors and subcontractors may include banks and other financial institutions by virtue of their serving as a depository of federal funds. Further, the Office of Federal Contract Compliance Programs (“OFCCP”) has taken the position that banks that serve as issuing and paying agents for U.S. savings bonds or receive federal deposit insurance would also be required to post the notice, although this is not stated in the Executive Order or related regulatory materials.
If physically posted, the prescribed notice must be on a poster at least 11x17 inches or larger and must inform employees of federal contractors and subcontractors of their rights under the NLRA to organize, bargain collectively with their employers, and engage in other protected activity. The notice also provides examples of illegal conduct by employers and unions as well as contact information for the National Labor Relations Board. Additionally, federal contracts and subcontracts must contain a provision requiring federal contractors and subcontractors to post the notice. If the contract or subcontractor customarily posts electronic notices to employees, the notice must also be posted electronically but not as a substitute for physical posting. This obligation may be satisfied by prominently displaying a link to the Department of Labor’s website that contains the full text of the notice on any website ordinarily used for employee notices. The text of the link must read: “Importance Notice about Employee Rights to Organize and Bargain Collectively with Their Employers.” Furthermore, if a significant portion of the contractor’s workforce is not proficient in English, the contractor must provide notice in the employees’ native language, both in physical and electronic versions.
The poster/notice containing the notice with the required information on employee rights can be downloaded here: http://www.dol.gov/olms/regs/compliance/EO13496.htm.
For assistance in reviewing your compliance with the new notice requirements or for further information on this topic, please do not hesitate to contact us.