Employee Rights Notification (E.O. 13496)

Summary

Makes companies with government contracts put up posters telling workers about their rights to organize and join unions under federal law.

What problem does this solve?

When workers do not know their rights, it can lead to disagreements and work stoppages, making government projects less efficient. This order requires companies with government contracts to inform employees of their labor rights to help prevent these problems.

What does this order do?

Requires contractors to post employee rights notices

Mandates that all federal government contractors post a notice in a visible place, both physically and online, informing employees of their rights under the National Labor Relations Act.

Sets penalties for not following the rule

Allows the government to cancel, stop, or suspend contracts if a contractor fails to post the required notice. The contractor may also be banned from getting future government contracts.

Applies rules to subcontractors

Requires that the main contractor include the notice requirement in every subcontract, making sure the rule applies to all companies working on the project.

Gives enforcement power to the Secretary of Labor

Makes the Secretary of Labor responsible for enforcing the order, including creating the notice, investigating complaints from employees, and holding hearings.

Cancels a previous executive order

Revokes Executive Order 13201 from 2001, which had different rules about notifying employees of their labor rights.

Who does this affect?

Employees of federal contractors
Federal government contractors and subcontractors
Labor unions

What is the real world impact?

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Promotes stable and efficient government work

Ensures that work on government contracts is not stopped by labor problems by making sure workers know their rights, which can lead to better relationships between workers and bosses.

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Strengthens labor unions

Requires businesses with federal contracts to inform employees of their right to unionize. Critics might argue this encourages union formation, potentially increasing costs for businesses and giving an advantage to organized labor.

When does this start?

This order took effect on January 30, 2009, and applies to new contracts once the Secretary of Labor finalizes the required employee notice.

Deadline for creating the employee notice

The Secretary of Labor must start the process of designing the official employee rights notice within 120 days of the order's effective date (January 30, 2009).