ABC OPPOSES DOL’S PROPOSED EMPLOYEE NOTIFICATION RULE  (09/09/2009)
AALRRABC Sept. 2 filed comments with the Department of Labor (DOL) Office of Labor-Management Standards voicing strong opposition to a regulation proposed for the implementation of Executive Order 13496 that would require federal contractors and subcontractors to post a notice informing employees of their rights to join or not join a union.  

Executive Order 13496, signed by President Obama Jan. 30, repealed existing Executive Order 13201, often referred to as the “Beck Order,” that required contractors to inform employees of their right to refuse to pay union dues that would be spent on earmarks for non-collective bargaining activities, including politics and lobbying.  Although that information is no longer required to be given and employers are not prohibited from continuing to provide that information to their employees, employers should take the added precaution of consulting with labor counsel.      

In its comments, ABC cautioned DOL that the proposed language to be displayed in a conspicuous place, as well as included in government contracts exceeding $100,000, needs to be revised because the level of detail and specificity of the language proposed exceeds DOL’s authority and will undermine employer-employee relations rather than promote them.     

“The Department’s approach invites employee misunderstanding of the law, particularly its complexities and nuances, and thereby risks confounding relations between employees and their employers,” ABC stated in its comments.  

ABC also opposed DOL’s proposal to make subcontracts below the Simplified Acquisition Threshold ($100,000) subject to the notification requirements, especially when prime contractors are excluded.  ABC advised that unless such subcontracts were also excluded, the rule will have a negative impact small businesses.  

“First, the Department acknowledges that 251,824 small contractors will be affected by the proposed rule, constituting 67 percent of the entire regulated community of government contractors,” ABC stated. “Yet, the Department contends that this figure is not a ‘substantial number.”  

To read Executive Order 13496, click here.   

To read the proposed rule and also ABC’s comments, visit www.abc.org/comments.