NLRB Issues Guidance on New Federal Contractor Reporting Obligations

Randi Klein Hyatt
Randi Klein Hyatt
07/21/2016

In the aftermath of the Fair Pay and Safe Workplaces Executive Order, which President Obama signed on July 31, 2014, the NLRB Office of General Counsel has issued guidance to its regions concerning the collection of additional information and reporting of certain federal contractors.

Federal contractors and employment lawyers may recall that the Fair Pay and Safe Workplaces Executive Order requires the EEOC, DOL and NLRB to collect and provide to federal contracting agencies information about federal contractors’ violations of several federal labor and employment laws and state equivalents (i.e. Fair Labor Standards Act, NLRA, FMLA, etc.).  The contracting agency will take into account these violations when considering whether these contractors should be permitted to bid on certain government contracts.

The Office of the General Counsel, in Memorandum OM 16-23, has provided guidance as to how the NLRB regional offices should collect this information from charged parties.  As of July 1, 2016, once the Region has determined that it will issue a complaint, it is required to ask the charged party whether it is, or has been, a federal contractor, and also collect certain identifying information.  While this may mean little to the bulk of employers charged with a violation of the NLRA, federal contractors must be aware that such charges will likely be reported to contracting agencies and may be taken into account when evaluating bidders.  It should go without saying that the effect on federal contractors of a violation of the NLRA (or other labor and employment laws) may go well beyond the instant charge and carry important ramifications on future bids.  Federal contractors must be aware of the requirements of the Fair Pay and Safe Workplaces Executive Order and its various implementing regulations, and plan accordingly.

 

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