Notification of Employee Rights Under the National Labor Relations Act
Federal contractors must prominently post and electronically display the Department of Labor’s NLRA rights notice for employees and ensure all qualifying subcontractors do the same, or risk severe penalties.
Overview
FAR 52.222-40 requires federal contractors to notify employees of their rights under the National Labor Relations Act (NLRA) by posting a specific notice provided by the Department of Labor. This notice must be displayed in conspicuous locations at worksites and, if applicable, electronically on websites used for employee communications. The notice must be posted in languages spoken by employees and must be accessible both physically and electronically if that is the contractor’s custom. The regulation also mandates that contractors flow down this requirement to all subcontracts exceeding $10,000 performed in whole or in part in the United States, unless exempted. Noncompliance can result in contract termination, suspension, debarment, or other sanctions.
Key Rules
- Posting Employee Notice
- Contractors must post the Department of Labor’s NLRA notice in conspicuous physical and, if applicable, electronic locations in all relevant languages.
- Obtaining and Using the Notice
- The official notice can be obtained from the Department of Labor, federal agencies, downloaded online, or reproduced exactly.
- Compliance with Notice Content
- Contractors must comply with all provisions of the notice and related Department of Labor regulations.
- Sanctions for Noncompliance
- Failure to comply may result in contract termination, suspension, debarment, or other legal remedies.
- Subcontractor Flowdown
- The clause must be included in all subcontracts over $10,000 performed in the U.S., and contractors must not structure procurements to avoid this requirement.
Responsibilities
- Contracting Officers: Ensure inclusion of this clause in applicable contracts and monitor compliance.
- Contractors: Post required notices, ensure accessibility, flow down requirements to subcontractors, and comply with all related regulations.
- Agencies: Provide notices upon request and enforce compliance.
Practical Implications
- This clause ensures employees are informed of their NLRA rights, supporting transparency and labor law compliance.
- Contractors must maintain diligent posting practices and ensure subcontractors also comply, or risk severe penalties.
- Common pitfalls include failing to post electronically, not providing notices in all required languages, or neglecting to flow down the clause to subcontractors.