Executive Order 13201

Executive Order 13201 (E.O. 13201) covers government contractors and subcontractors with a contract equal to or above the Simplified Acquisition Threshold of $100,000, which was entered into on or after April 28, 2004, and resulted from solicitations issued on or after April 18, 2001.

Basic Provisions/Requirements

E.O. 13201 requires government contractors to post a notice (the Beck Poster) informing their employees that they have certain rights related to union membership and use of union dues and fees under federal law. These contractors must include an employee notice clause in subcontracts or purchase orders entered into in connection with a covered contract. The employee notice clause requires subcontractors to also post the notice, and to include the requirement in further subcontracts.

The posting requirement does not apply to contractor establishments or construction work sites in jurisdiction where state law forbids enforcement of union-security agreements. The posting requirement also does not apply to contractor establishments or construction worksites where no union has been formally recognized by the contractor or certified as the exclusive bargaining representative.

The posting requirement does not apply to contractor establishments or construction worksites that involve a prime contractor and one or more subcontractors at a single site where the prime contractor, i.e., the person holding the contract with the government contracting agency, has not formally recognized a union and where no union has been certified as the exclusive bargaining representative of the prime contractor’s employees.

The E.O. 13201 poster informs employees of their rights under the decisions of the Supreme Court in Communications Workers of America v. Beck, 487 U.S. 735 (1988), and related cases. Under federal law, employees cannot be required to join a union or maintain membership in a union in order to retain their jobs. Under certain conditions, the law permits a union and an employer to enter into a union-security agreement requiring employees to pay uniform periodic dues and initiation fees. However, employees who are not union members can object to the use of their payments for certain purposes and can be required to pay only their share of union costs relating to collective bargaining, contract administration, and grievance adjustment.

If employees do not want to pay that portion of dues or fees used to support activities not related to collective bargaining, contract administration, or grievance adjustment, they are entitled to an appropriate reduction in their payment. If an employee believes that he/she has been required to pay dues or fees used in part to support activities not related to collective bargaining, contract administration, or grievance adjustment, that employee may be entitled to a refund and to an appropriate reduction in future payments. Further information concerning these rights is available from the National Labor Relations Board (NLRB).

Penalties/Sanctions

If, after administrative enforcement proceedings, the Assistant Secretary for Employment Standards finds that a contractor has violated the Executive Order, the Assistant Secretary may:

  • Direct a contracting agency to cancel, terminate, suspend, or cause to be canceled, terminated, or suspended, any contract or any portions thereof, for failure of the contractor to comply with its contractual provisions as required by Section 2 of E.O. 13201 and the implementing regulations. Contracts may be canceled, terminated, or suspended absolutely, or continuance of contracts may be conditioned upon compliance.
  • Issue an order of debarment under Section 6(b) of the order providing that one or more contracting agencies must refrain from entering into further contracts, or extensions or other modification of existing contracts, with any non-complying contractor.

Relation to State, Local, and Other Federal Laws

The employee rights described in the E.O. 13201 poster are based on Supreme Court decisions involving the Labor Management Relations Act, 1947, and the Railway Labor Act. The posting requirement does not apply to contractor establishments or construction worksites in jurisdictions where state law forbids enforcement of union-security agreements.

Click here to download the full text of the regulations.

Source: US Department of Labor

Updated 10/7/08

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