|FAR Regulations Implementing E.O. 13496 (NLRA posting requirement) Issued & Effective Dec. 13, 2010|
The FAR Council’s NLRA posting and flow down regulation under Executive Order 13496 were published in the December 13, 2010 Federal Register. The regulation has been issued as an Interim Final Regulation by the FAR Council and is effective immediately. There is a 60-day comment period with comments due by February 11, 2011. The new FAR regulation implements the U.S. Department of Labor’s (DOL)‘s E.O. 13496 regulation that was effective June 21, 2010 (see FortneyScott’s June 1, 2010 posting “DOL Issues Rule--Federal Contractor to Post Notice on Employees’ NLRA Rights”).
The new regulation will result in all federal agency contracting officers inserting new provisions in contracts and purchase orders, using new FAR clause 52.222-40, for all contracts resulting from solicitations issued on or after June 21, 2010, except acquisitions (see FAR 22.1605):
(1) under the simplified acquisition threshold;
Contractors, in turn, will need to insert the required flow-down clause and posting language in covered subcontracts in excess of $10,000. The subcontractor flow-down requirement applies to subcontracts at all tiers. Because the flow-down requirement is applicable to commercial items contracts, the FAR Council also amended FAR 52.244-6, which contains mandatory flow-down clauses for subcontracts for commercial items, to include FAR clause 52.222-40.
After the contract clauses have been included in a contractor’s contract, then the DOL poster on NLRA rights must be physically posted in the workplace and, if applicable, also electronically posted. The DOL’s Office of Federal Contract Compliance Programs (OFCCP) initially will audit contractors and subcontractors for compliance with the DOL posting requirements.
For additional information on complying with these new posting and flow-down requirements contact David Fortney (firstname.lastname@example.org), Leslie Stout-Tabackman (email@example.com), Judith Kramer, (firstname.lastname@example.org), Susan Webman (email@example.com) or the FortneyScott attorney with whom you work.