On June 19, 2010, a new U.S. Department of Labor (DOL) rule took effect which implemented President Obama’s Executive Order 13496 that requires certain Federal Government contractors and subcontractors to post a notice alerting employees of their rights under federal labor laws.

This new “Employee Labor Rights Notice” advises employees of their right to organize and bargain collectively with their employers and of their protection from certain types of employer and union misconduct. The rule requires that covered federal contractors and subcontractors post the notice both physically and electronically so that it can be readily seen by employees covered by the National Labor Relations Act (NLRA). The Notice may even need to be posted in a foreign language depending upon the numbers of foreign speaking employees. Failure to post the Notice may result in sanctions, including the suspension or cancellation of the contract and the debarring the contractor from future federal contracts. Seyfarth published alerts both on the issuance of the final rule [click here for the One Minute Memo] as well as the OFCCP’s enforcement of the rule in its compliance evaluations [click here for the One Minute Memo], which provide important details about the new Notice.

Some hospitality employers have not realized that they may be a federal contractor covered by the new posting obligations. Moreover, many hospitality employers who are not subject to this are errantly being told by their employees (and unions) that the notice must be posted. This new rule applies to all Federal Government solicitations issued on or after June 19 for $100,000 (the Simplified Acquisition threshold) or more. The Rule also requires all covered federal contractors to incorporate the notice posting requirement into any subcontracts of $10,000 or more.

Thus, if a hospitality employer has a contract with the federal government for $100,000 or more, or is a $10,000 or more subcontractor to a contractor that does, the notice most be posted. The federal contracts and subcontracts meeting the threshold should specify that the notice must be posted. Should you have any questions, please do not hesitate to contact your Seyfarth hospitality attorney.