Client Alert
June 14, 2010
New NLRA Notice Posting Requirement for Federal Contractors and Subcontractors

Effective June 21, 2010, all federal contractors and subcontractors must post the attached notice titled "Employee Rights Under the National Labor Relations Act."  This requirement applies to all federal contracts with a minimum value of $100,000, and federal subcontracts valued at more than $10,000.  This notice informs employees of various rights under the NLRA, including the right to organize a union, to discuss terms of employment with co-workers and with a union, to seek union help to improve work conditions, and to engage in other union activities.  The notice also highlights certain prohibited conduct for employers and unions.

Employers that inform employees of policies and other notices electronically, such as a company intranet, must post this notice both electronically and in the physical workplace.  Employers must link to the notice with a link titled "Important Notice about Employee Rights to Organize and Bargain Collectively with Their Employers."

This requirement stems from an Executive Order signed in January 2009, which supersedes a 2001 Executive Order requiring posting of a Beck notice.  In contrast with the Beck notice, which informed employees of their right not to join a union and to refuse to pay certain union dues, the new notice focuses primarily on informing employees of their rights to organize and join a union under the NLRA. 

Covered contractors and subcontractors will be subject to severe penalties for failing to comply, including contract cancellation and debarment from future contracts.  Thus, it is critical that all covered contractors and subcontractors IMMEDIATELY post the notice in conspicuous locations throughout their workplaces and comply with all other requirements of the Executive Order.  For further guidance, please contact Marc Furman, Chair of Cohen Seglias' Labor & Employment Group, at (215) 564-1700 or mfurman@cohenseglias.com.

     
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