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October 18, 2008    DOL Home > ESA > OLMS > E.O. 13201 Information > E.O. 13201 FAQ's

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General Questions

What is Executive Order 13201?

What are these employee rights?

Why is the notice sometimes called the Beck poster?

How can I have my union dues or fees reduced so that I am not paying for union activities that are not related to collective bargaining, contract administration, or grievance adjustment?

What is the definition of government contract under E.O. 13201 and the implementing regulations?

Do the employee rights described on the Notice of Employee Rights Concerning Payment of Union Dues poster only apply to employees of Government contractors?

What is the definition of subcontract under E.O. 13201 and the implementing regulations?

What does the term "federally assisted contract" mean?

Does the Simplified Acquisition Threshold exemption flow down?

Is a natural gas company that supplies gas to Federal buildings but does not have a written contract with a Federal agency, covered by Executive Order 13201?

I have a government contract to supply food to the army. I put all of the required information in my purchase order to the company that sells me tomatoes. Is the company that sells me tomatoes required to meet any E.O. 13201 obligations?

I supply items and services for a major corporation that has many contracts with the government. The items and services I supply have nothing to do with the contracts. Does my company have to comply with E.O. 13201?

I supplied products to a company that subsequently used them to perform government contracts, but I had no knowledge at the time of sale of the company’s ensuing use of my products. Is my company a subcontractor that must comply with E.O. 13201 despite its lack of notice?

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The Employee Notice Clause Questions

Under E.O. 13201, what employee notice clause must be included in government contracts?

Must the employee notice clause be quoted verbatim in contracts, subcontracts, or purchase orders?

What language should be used when the employee notice clause is incorporated by reference in a contract or subcontract?

Must the Executive Order 13201 clause be added retroactively to contracts entered into prior to April 28, 2004?

Is a change order considered to be a modification of a contract?

How should the employee notice clause be titled in a contract?

Are any contracts exempt from the employee notice clause requirement?

Are contracts issued before the effective date of E.O. 13201 covered?

Are there any other exemptions from the employee notice clause requirement?

Can an exemption be withdrawn?

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The Posting Requirement

A company has a government contract and has 50 sites, but only one of those sites has anything to do with providing services or products to the government for that contract. Is the poster required at all 50 sites? Does the contractor need to get an exemption for the remaining 49 sites if the poster is to be posted at the unique site? Would the other 49 sites have to file for a waiver?

How will employers be able to obtain copies of the Notice of Employee Rights Concerning Payment of Union Dues poster?

If a contractor downloads the Notice of Employee Rights Concerning Payment of Union Dues poster what size should it be?

Why is there a separate poster for contractors subject to the Railway Labor Act?

What contractors or facilities are exempt from the posting requirements?

Does the exemption from posting for fewer than 15 employees mean all employees or fewer than 15 unionized employees?

Does the exemption from posting for fewer than 15 employees mean fewer than 15 employees at a single worksite or that the contractor must have fewer than 15 total employees?

New! If a contractor is in a right-to-work state, but is covered by the Railway Labor Act, does the right-to-work exemption apply?

Does the posting requirement apply to a worksite if the prime contractor is not unionized, but subcontractors are?

I am a construction contractor with employees who are members of a number of different trade unions. Am I exempt from the posting requirement because I don't have an exclusive union situation?

Can the posting requirement be waived in any other circumstances?

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Enforcement Procedures

How will the Department determine whether a contractor is in compliance with E.O. 13201?

What happens during a compliance evaluation?

What is in the evaluation record?

What are the procedures for filing a complaint?

What happens during the investigation of a complaint?

What are the procedures to be followed when a violation is found during a complaint investigation or compliance evaluation?

Under what circumstances, and how, will enforcement proceedings under E.O. 13201 be conducted?

What happens during the administrative enforcement proceedings?

What sanctions and penalties may be imposed for noncompliance?

What procedures will the Department follow in imposing such sanctions and penalties?

Under what circumstances must a contractor be provided the opportunity for a hearing?

How can you learn which contractors have been debarred?

Under what circumstances can a contractor obtain reinstatement?

What actions may the Assistant Secretary take in the case of intimidation and interference?

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___________________________________________________________________________

Q. What is Executive Order 13201?

A. Executive Order 13201 (E.O. 13201) requires Government contractors and subcontractors to post to inform their employees that under Federal law they have certain rights related to union membership and the use of union dues and fees.

Q.What are these employee rights?

A. Under Federal law employees cannot be required to join a union or maintain membership in a union to retain their jobs. Employees who are subject to a union security clause and choose not to be union members may object to the use of their compulsory union dues and fees for union expenditures that are not related to representational activities, such as collective bargaining, contract administration and grievance adjustment. Employees who object to paying for non-representational activities may be entitled to a refund and appropriate reduction of future payments.

Q. Why is the notice sometimes called the Beck poster?

A. These rights are often referred to as "Beck rights" because they were first recognized in 1988 by the United States Supreme Court in Communications Workers of America v. Beck. Under the National Labor Relations Act (NLRA), an employer and a union may enter into an agreement requiring all employees in the bargaining unit to pay periodic union dues or fees as a condition of continued employment, whether or not the employees otherwise wish to become union members. The Court held that a union may not, over the objections of nonmember employees, expend funds collected from their compulsory agency fee payments on activities that are not related to collective bargaining, contract administration, or grievance adjustment.

Q. How can I have my union dues or fees reduced so that I am not paying for union activities that are not related to collective bargaining, contract administration, or grievance adjustment?

A. For information on exercising your rights, contact the National Labor Relations Board (NLRB). A zip code, city, state or region search of the closest office can be made online from the NLRB home page by clicking on the "Contact Us" text at www.nlrb.gov or you can call toll-free 1-866-667-NLRB (1-866-667-6572).

Q. What is the definition of government contract under E.O. 13201 and the implementing regulations?

A. Government contract means any agreement or modification thereof between any contracting agency and any person for the purchase, sale, or use of personal property or nonpersonal services. The term "personal property" includes supplies, and contracts for the use of real property (such as lease arrangements), unless the contract for the use of real property itself constitutes real property (such as easements). The term "nonpersonal services" includes, but is not limited to, utilities, construction, transportation, research, insurance, and fund depository. The term "government contract" does not include (a) agreements in which the parties stand in the relationship of employer and employee and (b) Federally assisted contracts.

Q. Do the employee rights described on the Notice of Employee Rights Concerning Payment of Union Dues poster only apply to employees of Government contractors?

A. No, these employee rights apply to all employees.

Q. What is the definition of subcontract under E.O. 13201 and the implementing regulations?

A. Subcontract means any agreement or arrangement between a contractor and any person (in which the parties do not stand in the relationship of an employer and an employee): (a) for the purchase, sale, or use of personal property or nonpersonal services which, in whole or in part, is necessary to the performance of any one or more contracts; or (b) under which any portion of the contractor's obligation under any one or more contracts is performed, undertaken, or assumed.

Q. What does the term "federally assisted contract" mean?

A. "Federally assisted contracts" as used in 29 CFR 470.1(j) has the same meaning as the term "federally assisted construction contract" as defined in the regulations implementing Executive Order 11246, Equal Employment Opportunity, at 41 CFR 60-1.3. The definition follows:

Federally assisted construction contract means any agreement or modification thereof between any applicant and a person for construction work which is paid for in whole or in part with funds obtained from the Government or borrowed on the credit of the Government pursuant to any Federal program involving a grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance, or guarantee, or any application or modification thereof approved by the Government for a grant, contract, loan, insurance, or guarantee under which the applicant itself participates in the construction work.

Q. Does the Simplified Acquisition Threshold exemption flow down?

A. Yes, the Simplified Acquisition Threshold exemption does flow down. Executive Order 13201 provides the text of contractual provisions that Federal agencies must include in Government contracts. These provisions, however, need not be included in contracts for purchases under the Simplified Acquisition Threshold. Contractors must include these same provisions in their nonexempt subcontracts and purchase orders, so that the provisions will be binding upon each subcontractor or vendor. Like the initial contractor, subcontractors and vendors need not include the text in contracts for purchases under the Simplified Acquisition Threshold.

Q. Is a natural gas company that supplies gas to Federal buildings but does not have a written contract with a Federal agency, covered by Executive Order 13201?

A. Yes, the gas company would be covered by Executive Order 13201. The supplying of gas or other utilities would constitute a government contract as defined at 29 CFR 470.1(j). However, the exemption for transactions below the Simplified Acquisition Threshold (currently $100,000) might apply. As provided in 29 CFR 470.3(a), the employee notice clause does not have to be included in contracts for indefinite quantities if the contracting agency or contractor has reason to believe that the amount to be ordered in any year under the contract will be less than the Simplified Acquisition Threshold.

Q. I have a government contract to supply food to the army. I put all of the required information in my purchase order to the company that sells me tomatoes. Is the company that sells me tomatoes required to meet any E.O. 13201 obligations?

A. Yes, unless the purchase order is below the Simplified Acquisition Threshold of $100,000. Covered government contractors and subcontractors must include the employee notice clause in their nonexempt subcontracts and purchase orders, so that the provisions will be binding upon each subcontractor or vendor. The regulations, at 29 CFR 470.3, describe what subcontracts and purchase order are exempt. The term "contractor" includes a prime contractor or subcontractor, at any tier.

Q. I supply items and services for a major corporation that has many contracts with the government. The items and services I supply have nothing to do with the contracts. Does my company have to comply with E.O. 13201?

A. You would be a covered subcontractor required to comply with E.O. 13201 only if you have an agreement with the contractor for the purchase, sale or use of personal property or non-personal services which, in whole or in part, are necessary to the performance of any one or more government contracts or if you have an agreement under which you perform or assume any portion of the contractor's obligation under a government contract.

Q. I supplied products to a company that subsequently used them to perform government contracts, but I had no knowledge at the time of sale of the company’s ensuing use of my products. Is my company a subcontractor that must comply with E.O. 13201 despite its lack of notice?

A. E.O. 13201 coverage does not exist for an employer merely because that employer sells a product to another company that is subsequently used by that company in the performance of a Government contract. In order for EO 13201 coverage to exist, the employer must have entered into a subcontract with the Government contractor (that is, an agreement or arrangement for the purchase of a product which is necessary to the performance of any one or more Government contracts). Government contractors must include the EO 13201 notice clause in their nonexempt subcontracts and purchase orders, so that the provisions will be binding upon each subcontractor or vendor. Thus, the requirements of Executive Order 13201 and its implementing regulations become binding on the subcontractor only if the notice clause is included, directly or by reference, in the text of the subcontract or purchase order.

Q. Under E.O. 13201, what employee notice clause must be included in government contracts?

A. Except in exempted contracts as discussed below, all government contracting agencies must, to the extent consistent with law, include the following provisions in government contracts:

1. During the term of this contract, the contractor agrees to post a notice in conspicuous places in and about its plants and offices, including all places where notices to employees are customarily posted. The notice must include the following information (except that the last two sentences must not be included in notices posted in the plants or offices of carriers subject to the Railway Labor Act, as amended (45 U.S.C. 151-188)).

NOTICE TO EMPLOYEES

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 only be required to pay their share of union costs relating to collective bargaining, contract administration, and grievance adjustment. If you 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, you are entitled to an appropriate reduction in your payment. If you believe that you have been required to pay dues or fees used in part to support activities not related to collective bargaining, contract administration, or grievance adjustment, you may be entitled to a refund and to an appropriate reduction in future payments.

For further information concerning your rights, contact the National Labor Relations Board (NLRB) either at one of its Regional offices or at the following address:

National Labor Relations Board
Division of Information
1099 14th Street, NW
Washington, D.C. 20570
1-866-667-6572
1-866-315-6572 (TTY)

To locate the nearest NLRB office, see NLRB's website at www.nlrb.gov.

2. The contractor will comply with all provisions of E.O. 13201 of February 17, 2001, and related rules, regulations, and orders of the Secretary of Labor.

3. In the event that the contractor does not comply with any of the requirements set forth in paragraphs (1) or (2) above, this contract may be cancelled, terminated, or suspended in whole or in part, and the contractor may be declared ineligible for further government contracts in accordance with procedures authorized in or adopted pursuant to E.O. 13201 of February 17, 2001. Such other sanctions or remedies may be imposed as are provided in E.O. 13201 of February 17, 2001, or by rule, regulation, or order of the Secretary of Labor, or as are otherwise provided by law.

4. The contractor will include the provisions of paragraphs (1) through (4) herein in every subcontract or purchase order entered into in connection with this contract unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 3 of E.O. 13201 of February 17, 2001, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any such subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions, including the imposition of sanctions for noncompliance: However, if the contractor becomes involved in litigation with a subcontractor or vendor, or is threatened with such involvement, as a result of such direction, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

Q. Must the employee notice clause be quoted verbatim in contracts, subcontracts, or purchase orders?

A. No. The employee notice clause need not be quoted verbatim in a contract, subcontract, or purchase order. Instead, the clause may be made part of such agreements by reference. In that case, the agreement will contain a citation to 29 CFR part 470.

Q. What language should be used when the employee notice clause is incorporated by reference in a contract or subcontract?

A. The clause can be incorporated by language such as "The contractor agrees to comply with the provisions of 29 CFR part 470."

Q. Must the Executive Order 13201 clause be added retroactively to contracts entered into prior to April 28, 2004?

A. No, the clause must only be added to contracts that are entered into or modified on or after April 28, 2004 and that resulted from solicitations issued on or after April 18, 2001. Modification of a contract is defined as "any alteration in the terms and conditions of that contract, including amendments, renegotiations, and renewals."

Q. Is a change order considered to be a modification of a contract?

A. Yes

Q. How should the employee notice clause be titled in a contract?

A. It can be referred to as "Executive Order 13201 Compliance."

Q. Are any contracts exempt from the employee notice clause requirement?

A. The employee notice clause does not have to be included in collective bargaining agreements as defined in 5 U.S.C. 7103(a)(8). The clause also does not have to be included in government contracts for purchases below the "Simplified Acquisition Threshold" (currently $100,000) as defined in the Office of Federal Procurement Policy Act, 41 U.S.C. 403, provided that:

1. No agency, contractor, or subcontractor is permitted to procure supplies or services in a way designed to avoid the applicability of the Order and the implementing regulations; and

2. The employee notice clause must be included in contracts and subcontracts for indefinite quantities, unless the contracting agency or contractor has reason to believe that the amount to be ordered in any year under such a contract or subcontract will be less than the Simplified Acquisition Threshold.

Q. Are contracts issued before the effective date of E.O. 13201 covered?

A. The Executive Order does not apply to Government contracts resulting from solicitations issued before April 18, 2001.

Q. Are there any other exemptions from the employee notice clause requirement?

A. The Deputy Assistant Secretary for Labor-Management Programs may exempt a contracting agency or any person from requiring the inclusion of any or all of the employee notice clause in any specific contract, subcontract, or purchase order when the Deputy Assistant Secretary deems that special circumstances in the national interest so require. Requests for such exemptions must be in writing, and must be directed to the Deputy Assistant Secretary for Labor-Management Programs, U.S. Department of Labor, 200 Constitution Avenue, NW, Room N-5605, Washington, D.C., 20210.

Q. Can an exemption be withdrawn?

A. When any contract or subcontract is of a class exempted under 29 CFR 470.3, the Deputy Assistant Secretary for Labor-Management Programs may withdraw the exemption for a specific contract or subcontract or group of contracts or subcontracts when, in the Deputy Assistant Secretary's judgment, such action is necessary or appropriate to achieve the purposes of the Order.

Q. A company has a government contract and has 50 sites, but only one of those sites has anything to do with providing services or products to the government for that contract. Is the poster required at all 50 sites? Does the contractor need to get an exemption for the remaining 49 sites if the poster is to be posted at the unique site? Would the other 49 sites have to file for a waiver?

A. The poster would be required at all 50 sites unless the work sites are exempt under at least one of the provisions of § 470.4 of the regulations. The posting requirement would not apply to:

  • Contractors and subcontractors that employ fewer than 15 persons;
  • Contractor establishments or construction work sites where no union has been formally recognized by the prime contractor or certified as the exclusive bargaining representative of the prime contractor's employees;
  • Contractor establishments or construction work sites in jurisdictions where state law forbids enforcement of union-security agreements;
  • Work performed outside the United States that does not involve the recruitment or employment of workers within the United States.

Also, upon the written request of the contractor, the Deputy Assistant Secretary for Labor-Management Programs may waive the posting requirements with respect to any of a contractor's facilities if the Deputy Assistant Secretary finds that the contractor has demonstrated that:

(1) The facility is in all respects separate and distinct from activities of the contractor related to the performance of a contract; and,

(2) Such a waiver will not interfere with or impede the effectuation of the Executive Order.

Q. How will employers be able to obtain copies of the Notice of Employee Rights Concerning Payment of Union Dues poster?

A. The required employee notice poster, printed by the Department, will be provided by the Federal contracting agency or may be obtained from the Division of Interpretations and Standards, Office of Labor-Management Standards, U.S. Department of Labor, 200 Constitution Avenue, NW, Room N-5605, Washington, DC 20210, or from any field office of the Department's Office of Labor-Management Standards or Office of Federal Contract Compliance Programs. A copy of the poster may also be downloaded from the Office of Labor-Management Standards Web site. (The Notice of Employee Rights Concerning Payment of Union Dues) (Notice of Employee Rights Concerning Payment of Union Dues - Spanish Version) (The Notice of Employee Rights Concerning Payment of Union Dues for Contractors Subject to the Railway Labor Act) Additionally, contractors may reproduce and use exact duplicate copies of the Department's official poster.

Q. If a contractor downloads the Notice of Employee Rights Concerning Payment of Union Dues poster what size should it be?

A. The poster must be 11 by 17 inches or larger.

Q. Why is there a separate poster for contractors subject to the Railway Labor Act?

A. The poster for contractors subject to the Railway Labor Act omits the reference to the National Labor Relations Board (NLRB) because carriers subject to the Railway Labor Act, as amended (45 U.S.C. 151-188) and their employees are not within the jurisdiction of the NLRB.

Q. What contractors or facilities are exempt from the posting requirements?

A. The requirement to post the employee notice does not apply to government contractors and subcontractors that employ fewer than 15 persons, to contractor establishments or construction work sites where no union has been formally recognized by the prime contractor or certified as the exclusive bargaining representative of the prime contractor's employees, to contractor establishments or construction work sites in jurisdictions where state law forbids enforcement of union-security agreements and to work performed outside the United States that does not involve the recruitment or employment of workers within the United States.

Q. Does the exemption from posting for fewer than 15 employees mean all employees or fewer than 15 unionized employees?

A. Under the exemption, a contractor or subcontractor that employs fewer than 15 employees need not post the employee notice, whether or not the 15 employees are members of a union. Therefore, both unionized and non-unionized employees are counted when determining if the contractor or subcontractor has fewer than 15 employees.

Q. Does the exemption from posting for fewer than 15 employees mean fewer than 15 employees at a single worksite or that the contractor must have fewer than 15 total employees?

A. Under the exemption, a contractor or subcontractor that employs 15 or more employees must post the employee notice, regardless of the number of employees at each worksite.

Q. If a contractor is in a right-to-work state, but is covered by the Railway Labor Act, does the right-to-work exemption apply?

A. Since Section 2, Eleventh of the Railway Labor Act permits union security agreements in the railway and airline industry despite a state right-to-work law, RLA covered contractors are never in “jurisdictions where state law forbids enforcement of union-security agreements [for them].” Therefore, they are never covered by the right-to-work exemption.

Q. Does the posting requirement apply to a worksite if the prime contractor is not unionized, but subcontractors are?

A. No, the posting requirement does not apply to contractor establishments or construction work sites where no union has been formally recognized by the prime contractor or certified as the exclusive bargaining representative of the prime contractor's employees.

Q. I am a construction contractor with employees who are members of a number of different trade unions. Am I exempt from the posting requirement because I don't have an exclusive union situation?

A. The posting requirement does not apply to work sites where "no union has been formally recognized by the prime contractor or certified as the exclusive bargaining representative of the prime contractor's employees." The term "exclusive" as used here means the exclusive representative for a particular bargaining unit of a certain type(s) of employees. A prime contractor can deal with more than one union as exclusive bargaining representative if each union represents a different type of employee. For example, a construction contractor may deal with unions for carpenters, plumbers, electricians, etc. Under these circumstances, the exemption does not apply. The exemption applies only to work sites where the prime contractor has no union representation at all for any of its employees.

Q. Can the posting requirement be waived in any other circumstances?

A. Upon the written request of the contractor, the Deputy Assistant Secretary for Labor-Management Programs may waive the posting requirement with respect to any of a contractor's facilities if the Deputy Assistant Secretary finds that the contractor has demonstrated that: (1) The facility is in all respects separate and distinct from activities of the contractor related to the performance of a contract; and (2) such a waiver will not interfere with or impede the effectuation of E.O. 13201.

Q. How will the Department determine whether a contractor is in compliance with E.O. 13201?

A. The Deputy Assistant Secretary for Federal Contract Compliance may conduct a compliance evaluation to determine whether a contractor holding a nonexempt contract is in compliance with the requirements of E.O. 13201 and the implementing regulations. Such an evaluation may be limited to compliance with E.O. 13201 or may be included in a compliance evaluation conducted under other laws, executive orders, and/or regulations enforced by the Department of Labor.

Q. What happens during a compliance evaluation?

A. During such an evaluation, a determination will be made whether:

(1) The employee notice required by Section 470.2(a) is posted in conspicuous places in and about each of the contractor's establishments and/or construction work sites not exempted under Section 470.4, including all places where notices to employees are customarily posted; and

(2) The provisions of the employee notice clause are included in nonexempt government contracts entered into on or after the effective date of the implementing regulations that resulted from solicitations issued on or after April 18, 2001.

Q. What is in the evaluation record?

A. The results of the evaluation will be documented in the evaluation record, which will include findings regarding the contractor's compliance with the requirements of the Executive Order and the implementing regulations and, as applicable, conciliation efforts made, corrective action taken and/or enforcement recommended under Section 470.13.

Q. What are the procedures for filing a complaint?

A. An employee of a covered contractor may file a complaint alleging that the contractor has failed to post the employee notice as required by E.O. 13201 and the implementing regulations; and/or has failed to include the employee notice clause in nonexempt subcontracts or purchase orders. Complaints may be filed with the Office of Labor-Management Standards (OLMS) or the Office of Federal Contract Compliance Programs (OFCCP) at 200 Constitution Avenue, NW, Washington, DC 20210, or with any OLMS or OFCCP field office.

The complaint must be in writing, be signed by the complainant, and include

  • the name, address, and telephone number of the employee who filed the complaint (the complainant);
  • the name and address of the contractor alleged to have violated the Executive Order;
  • an identification of the alleged violation;
  • the establishment or construction work site where the violation is alleged to have occurred; and
  • any other pertinent information that will assist in the investigation and resolution of the complaint.

Q. What happens during the investigation of a complaint?

A. In investigating complaints filed with the Department, the Deputy Assistant Secretary for Federal Contract Compliance will evaluate the allegations of the complaint and develop a case record. The record will include findings regarding the contractor's compliance with the requirements of E.O. 13201 and the implementing regulations, and, as applicable, a description of conciliation efforts made, corrective action taken, and/or enforcement recommended.

Q. What are the procedures to be followed when a violation is found during a complaint investigation or compliance evaluation?

A. If any complaint investigation or compliance evaluation indicates a violation of E.O. 13201 or the implementing regulations, the Department will make reasonable efforts to secure compliance through conciliation. The contractor must correct the violation found by the Department (for example, by posting the required employee notice, and/or by amending its subcontracts or purchase orders with nonexempt subcontractors and vendors to include the employee notice clause), and must commit, in writing, not to repeat the violation, before the contractor may be found to be in compliance with the Executive Order or the implementing regulations.

Q. Under what circumstances, and how, will enforcement proceedings under E.O. 13201 be conducted?

A. Violations of the Executive Order may result in administrative proceedings to enforce the Order. The bases for a finding of a violation may include, but are not limited to:

  • The results of a compliance evaluation;
  • The results of a complaint investigation;
  • A contractor's refusal to allow a compliance evaluation or complaint investigation to be conducted; or
  • A contractor's refusal to provide information as required by the E.O. and the regulations.

If a determination is made that the Executive Order has been violated, and the violation has not been corrected through conciliation, the Deputy Assistant Secretary for Labor-Management Programs may refer the matter to the Solicitor of Labor for institution of administrative enforcement proceedings.

Q. What happens during the administrative enforcement proceedings?

A. The proceedings will be conducted under the control and supervision of the Solicitor of Labor, under the hearing procedures set forth in 29 CFR part 18, Rules of Practice and Procedure for Administrative Hearings Before the Office of Administrative Law Judges. The administrative law judge will certify his or her recommended decision to the Assistant Secretary for Employment Standards. The parties may file exceptions to the decision with the Assistant Secretary (and responses to the exceptions). The Assistant Secretary may then issue a final administrative order or make such other disposition of the matter as he or she finds appropriate. If the Assistant Secretary determines that the contractor has violated E.O. 13201 or the implementing regulations, the final administrative order will order the contractor to cease and desist from the violations, require the contractor to provide appropriate remedies, or impose appropriate sanctions and penalties, or any combination thereof.

Q. What sanctions and penalties may be imposed for noncompliance?

A. The Assistant Secretary may:

1. 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.

2. 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 noncomplying contractor.

Q. What procedures will the Department follow in imposing such sanctions and penalties?

A. After a final decision on the merits has been issued and before imposing the sanctions and penalties, the Assistant Secretary will consult with the affected contracting agencies, and provide the heads of those agencies the opportunity to respond and provide written objections.

If the contracting agency provides written objections, those objections must include a complete statement of reasons for the objections, among which reasons must be a finding that, as applicable, the completion of the contract, or further contracts or extensions or modifications of existing contracts, is essential to the agency's mission.

The sanctions and penalties will not be imposed if:

1. The head of the contracting agency continues personally to object to the imposition of such sanctions and penalties, or

2. The contractor has not been afforded an opportunity for a hearing.

Q. Under what circumstances must a contractor be provided the opportunity for a hearing?

A. A contractor must be given the opportunity for a hearing before the Assistant Secretary:

1. Issues an order debarring the contractor from further government contracts under section 6(b) of E.O. 13201 and section 470.14(d)(2) of the implementing regulations; or

2. Includes the contractor on a published list of noncomplying contractors under section 6(c) of the Executive Order and section 470.14(f) of the implementing regulations.

Q. How can you learn which contractors have been debarred?

A. Periodically, the Assistant Secretary will publish and distribute, or cause to be published and distributed, to all executive agencies a list of the names of contractors that have, in the judgment of the Assistant Secretary, failed to comply with the provisions of E.O. 13201, or of related rules, regulations, and orders of the Secretary of Labor, and as a result have been declared ineligible for future contracts or subcontracts under E.O. 13201.

Q. Under what circumstances can a contractor obtain reinstatement?

A. Any contractor or subcontractor debarred from or declared ineligible for further contracts or subcontracts under E.O. 13201 may request reinstatement in a letter to the Assistant Secretary. If the Assistant Secretary finds that the contractor or subcontractor has come into compliance with the Executive Order and the implementing regulations and has shown that it will carry out the Executive Order and the implementing regulations, the contractor or subcontractor may be reinstated.

Q. What actions may the Assistant Secretary take in the case of intimidation and interference?

A. The sanctions and penalties may be exercised by the Assistant Secretary against any contractor or subcontractor who fails to take all necessary steps to ensure that no person intimidates, threatens, or coerces any individual for the purpose of interfering with the filing of a complaint, furnishing information, or assisting or participating in any manner in a compliance evaluation, complaint investigation, hearing, or any other activity related to the administration of E.O. 13201.

Last Updated: 11/07/06



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