Subpart 22.16 - Notification of Employee

Rights Under the National Labor Relations

Act

Parent topic: Part 22 - Application of Labor Laws to Government Acquisitions

22.1600 Scope of subpart.

This subpart prescribes policies and procedures to implement Executive Order 13496, dated January

30, 2009 (74 FR 6107, February 4, 2009).

22.1601 Definitions.

As used in this subpartSecretary means the Secretary of Labor, U.S. Department of Labor.

United States means the 50 States, the District of Columbia, Puerto Rico, the Commonwealth of the

Northern Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, and Wake Island.

22.1602 Policy.

(a) Executive Order 13496 requires contractors to post a notice informing employees of their rights

under Federal labor laws.

(b) The Secretary has determined that the notice must contain employee rights under the National

Labor Relations Act (Act), 29 U.S.C. 151 et seq. The Act encourages collective bargaining, and

protects the exercise by employees of their freedom to associate, to self-organize, and to designate

representatives of their own choosing for the purpose of negotiating the terms and conditions of

their employment or other mutual aid or protection.

22.1603 Exceptions.

(a) The requirements of this subpart do not apply to-

(1) Contracts under the simplified acquisition threshold;

(2) Subcontracts of $10,000 or less; and

(3) Contracts or subcontracts for work performed exclusively outside the United States.
(b) Exemptions granted by the Secretary.

(1) If the Secretary finds that the requirements of the Executive Order impair the ability of the

Government to procure goods and services on an economical and efficient basis or if special

circumstances require an exemption in order to serve the national interest, the Secretary may

exempt a contracting department or agency, or groups of departments or agencies, from the

requirements of any or all of the provisions of this Executive Order with respect to a particular

contract or subcontract, or any class of contracts or subcontracts, including the requirement to

include the clause at 52.222-40, or parts of that clause, in contracts.

(2) Requests for exemptions may be submitted in accordance with Department of Labor regulations

at 29 CFR 471.3.

22.1604 Compliance evaluation and complaint investigations

and sanctions for violations.

(a) The Secretary may conduct compliance evaluations or investigate complaints of any contractor or

subcontractor to determine if any of the requirements of the clause at 52.222-40 have been violated.

(b) Contracting departments and agencies shall cooperate with the Secretary and provide such

information and assistance as the Secretary may require in the performance of the Secretary’s

functions.

(c) If the Secretary determines that there has been a violation, the Secretary may take such actions

as set forth in 29 CFR 471.14.

(d) The Secretary may not terminate or suspend a contract or suspend or debar a contractor if the

agency head has provided written objections, which must include a statement of reasons for the

objection and a finding that the contractor’s performance is essential to the agency’s mission, and

continues to object to the imposition of such sanctions and penalties. Procedures for enforcement by

the Secretary are set out in 29 CFR 471.10 through 29 CFR 471.16.

22.1605 Contract clause.

(a) Insert the clause at 52.222-40, Notification of Employee Rights under the National Labor

Relations Act, in all solicitations and contracts, including acquisitions for commercial products,

commercial services, and commercially available off-the-shelf items, except acquisitions-

(1) Under the simplified acquisition threshold. For indefinite-quantity contracts, include the clause

only if the value of orders in any calendar year of the contract is expected to exceed the simplified

acquisition threshold;

(2) For work performed exclusively outside the United States; or

(3) Covered (in their entirety) by an exemption granted by the Secretary.

(b) A contracting agency may modify the clause at 52.222-40, if necessary, to reflect an exemption

granted by the Secretary (see 22.1603(b)).