Executive Order 13496 requires contractors to display a notice to employees of their rights under Federal labor laws, specifically the National Labor Relations Act. The Executive Order applies to contracts based on solicitations issued on or after June 21, 2010.

The notice, in a form prescribed by Department of Labor, must be posted in a conspicuous place so that it is prominent and readily seen. A copy of the poster can be downloaded at www.dol.gov/olms/regs/compliance/EmployeeRightsPoster2page_Final.pdf.

Failure to comply with the posting requirements and related rules and orders of the Secretary of Labor may result in the contract being terminated or suspended, and also in the Contractor’s suspension or debarment.

A new FAR clause 52.222-99 implements this requirement, and it applies to the acquisition of commercial items as well as other requirements above the simplified acquisition threshold. Contracts for work performed exclusively outside the United States are exempt.

For your contract compliance questions, contact government contracts law firm of Hindson & Melton LLC.