The Office of Federal Contract Compliance Programs (OFCCP) announced it will investigate complaints that covered federal contractors haven’t notified employees of their rights under the National Labor Relations Act (NLRA), as required by Executive Order 13496. Also, if the OFCCP comes on site during an affirmative action audit, they will check whether the NLRA rights poster is up and whether subcontractors have been notified of their obligations.
Tips: Before you leap into immediate compliance, first determine whether you are covered by the Executive Order. Look at the date on the original request for bids. The NLRA notice requirements apply to federal contracts resulting from solicitations issued on or after June 21, 2010. Then look at the amount. As explained in our June 3, 2010, newsletter, prime contractors are covered if the value of their contract is at least $100,000. All subcontractors down the chain on those large federal contracts are also covered unless their subcontracts are worth $10,000 or less (75 Fed Reg 28368, May 20, 2010).
One last point: If you fail to comply, the penalty is . . . (drum roll) . . . being told to comply. That’s right, the OFCCP will instruct you to post the poster or notify your subcontractors. As long as you follow their instructions, there are no consequences. But, if you fail to post it after being instructed to do so, you could eventually lose your federal contract and be debarred from future contracts.