EXECUTIVE ORDER 13496


What is Executive Order 13496?

Executive Order 13496 (EO 13496) and the Department of Labor’s regulations implementing
this Executive Order, 29 C.F.R. Part 471, which were published on May 20, 2010, require
federal contractors and subcontractors to inform employees about their labor law rights under
the National Labor Relations Act (NLRA). The final order is effective on June 21,2010 and is for
any solicitations/prime contracts after June 21, 2010 in the amount of $100,000 or more or
subcontracts in the amount of $10,000. E.O. 13496 advances the Administration's goal of
promoting economy and efficiency of Federal government procurement by ensuring that
workers employed in the private sector and engaged in activity related to the performance of
Federal government contracts are informed of their rights to form, join, or assist a union and
bargain collectively with their employer.

How must employers inform employees about these rights?

EO 13496 requires covered employers to post a notice which:

   •    lists employees’ rights under the NLRA to form, join and assist a union and to bargain
        collectively with their employer;

   •    provides examples of unlawful employer and union conduct that interferes with those
        rights; and

   •    indicates how employees can contact the National Labor Relations Board, the federal
        agency that enforces those rights, with questions about the rights or to file complaints.

A specific notice has been prepared for employer use, in a number of languages. Links to
online versions of these forms are included at the end of this document.

Electronic notification is also required by employers who post notices to employees
electronically, in addition to the physical posting.

Employers must post the employee notice conspicuously in and around their plants and offices
so that it is prominent and readily seen by employees. In particular, employers must post the
notice where other notices to employees about their jobs are posted. The size of the poster
must be 11x17 inches or larger.

What else must employers do to be in compliance with EO 13496?

In addition to the employee notification requirement, covered employers must include specific
wording in their covered federal contracts and subcontracts with suppliers agreeing to inform
employees about NLRA rights. The Final Rule identifies what wording must be placed in
contracts. The Final Rule allows the notice clause to be incorporated by reference instead of
requiring the full notice clause to be contained in all contracts.
What companies are required to comply with EO 13496?

Most all companies with new U.S. Government contracts are required to comply with EO 13496.
“Covered Contracts” are contracts resulting from solicitations issued after June 21, 2010. The
most common exceptions are for small contracts (prime contracts less than $100,000 and
subcontracts less than $10,000).

When are companies required to comply with EO 13496?

EO 13496 is effective immediately for all employers with Covered Contracts.

How will EO 13496 be enforced?

EO 13496 compliance verification will be conducted as a routine part of the on-site phase of
other compliance evaluations by the Office of Federal Contract Compliance Programs
(OFCCP). At that time the compliance officer will verify the required postings and inspect
contracts and employer purchase orders to ensure that the required language is included.

What are the consequences of an employer’s failure to comply with EO 13496?

If an employer is found to be out of compliance with EO 13496, the OFCCP will attempt to assist
the employer to come into compliance by providing posters and examples of the required
contractual language. The employer’s progress will be reviewed by the OFCCP through the use
of a Conciliation Agreement.

If an employer continues to fail to comply with EO 13496, the consequences can include
suspension or cancellation of the contract or even debarment from holding federal contracts.

What other resources should an employer consult to ensure that they are fully informed
of the requirements of EO 13496 for their specific business?

EO 13496 has specific requirements that may vary from one company to another, and may vary
by industry. It is highly recommended that companies consult their labor attorneys to ensure
that they take the proper actions to be in compliance.

What other resources are available for an employer to start the process to be in

Following are some additional websites and links that employers may find helpful.

       Office of Labor-Management Standards (OLMS) Fact Sheet (HTML) (PDF)

       Executive Order 13496 (HTML) (PDF)

       Final Rule Implementing Executive Order 13496 (HTML) (PDF)

       Notice of Employee Rights Under Federal Labor Laws - 11x17-inch one-page format
Notice of Employee Rights Under Federal Labor Laws - 11x8.5-inch two-page format

Click on the PDF link for one of the Notice of Employee Rights Under Federal Labor
Laws posters above and wait for it to load into the viewer.

   1. The size of the poster must be 11x17 inches or larger.
   2. If you have a printer capable of printing to 11x17 inch paper, download the poster
      in the 11x17-inch one-page format. Be sure to select that paper size when

       If you do not have a printer that is capable of 11x17 prints, download the poster
       in the 11x8.5-inch two-page format. When printing, please ensure that the Page
       Scaling box reads: Scale to Printer Margins and you have checked the Auto-
       Rotate and Center box. The poster will print two 11x8.5-inch landscape pages
       that must be taped or pasted together to form the 11x17 inch poster.

Electronic Posting of the Notice of Employee Rights

       If you are a contractor or subcontractor that customarily posts notices to
       employees electronically, you must also post the required notice electronically.
       You can satisfy the electronic posting requirement by displaying prominently a
       link to the Notice of Employee Rights Under Federal Labor Laws Poster on any
       external or internal website that you maintain and customarily use for notices to
       employees about terms and conditions of employment. The text for the link must
       read, "Important Notice about Employee Rights to Organize and Bargain
       Collectively with Their Employers'' and it must link to this page:

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