Notification of Employee Rights Concerning Payment of Union Dues or Fees

Executive Order 13201 of February 17, 2001

Notification of Employee Rights Concerning
Payment of Union Dues or Fees

By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the Federal Property and
Administrative Services Act, 40 U.S.C. 471 et seq., and
in order to ensure the economical and efficient
administration and completion of Government contracts,
it is hereby ordered that:

Section 1. (a) This order is designed to promote
economy and efficiency in Government procurement. When
workers are better informed of their rights, including
their rights under the Federal labor laws, their
productivity is enhanced. The availability of such a
workforce from which the United States may draw
facilitates the efficient and economical completion of
its procurement contracts.

    (b) The Secretary of Labor (Secretary) shall be
responsible for the administration and enforcement of
this order. The Secretary shall adopt such rules and
regulations and issue such orders as are deemed
necessary and appropriate to achieve the purposes of
this order.

Sec. 2. (a) Except in contracts exempted in accordance
with section 3 of this order, all Government
contracting departments and agencies shall, to the
extent consistent with law, include the following
provisions in every Government contract, other than
collective bargaining agreements as defined in 5 U.S.C.
7103(a)(8) and purchases under the “Simplified
Acquisition Threshold” as defined in the Office of
Federal Procurement Policy Act (41 U.S.C. 403).

“1. During the term of this contract, the contractor
agrees to post a notice, of such size and in such form
as the Secretary of Labor shall prescribe, in
conspicuous places in and about its plants and offices,
including all places where notices to employees are
customarily posted. The notice shall include the
following information (except that the last sentence
shall 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, you
may wish to 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, N.W.

 Washington, D.C. 20570

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

“2. The contractor will comply with all provisions of
Executive Order 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 Executive Order
13201 of February 17, 2001. Such other sanctions or
remedies may be imposed as are provided in Executive
Order 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 (3) 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 Executive Order 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 non compliance: Provided,
however, that 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.”

    (b) Whenever, through Acts of Congress or through
clarification of existing law by the courts or
otherwise, it appears that contractual provisions other
than, or in addition to, those set out in subsection
(a) of this section are needed to inform employees
fully and accurately of their rights with respect to
union dues, union-security agreements, or the like, the
Secretary shall promptly issue such rules, regulations,
or orders as are needed to cause the substitution or
addition of appropriate contractual provisions in
Government contracts thereafter entered into.

Sec. 3. (a) The Secretary may, if the Secretary finds
that special circumstances require an exemption in
order to serve the national interest, exempt a
contracting department or agency from the requirements
of any or all of the provisions of section 2 of this
order with respect to a particular contract,
subcontract, or purchase order.

    (b) The Secretary may, by rule, regulation, or
order, exempt from the provisions of section 2 of this
order certain classes of contracts to the extent that
they involve (i) work outside the United States and do
not involve the recruitment or employment of workers
within the United States; (ii) work in jurisdictions
where State law forbids enforcement of union- security
agreements; (iii) work at sites where the notice to
employees described in section 2(a) of this order would
be unnecessary because the employees are not
represented by a union; (iv) numbers of workers below
appropriate thresholds set by the Secretary; or (v)
subcontracts below an appropriate tier set by the
Secretary.
    (c) The Secretary may provide, by rule, regulation,
or order, for the exemption of facilities of a
contractor, subcontractor, or vendor that are in all

respects separate and distinct from activities related
to the performance of the contract: Provided, that such
exemption will not interfere with or impede the
effectuation of the purposes of this order: And
provided further, that in the absence of such an
exemption all facilities shall be covered by the
provisions of this order.

Sec. 4. (a) The Secretary may investigate any
Government contractor, subcontractor, or vendor to
determine whether the contractual provisions required
by section 2 of this order have been violated. Such
investigations shall be conducted in accordance with
procedures established by the Secretary.

    (b) The Secretary shall receive and investigate
complaints by employees of a Government contractor,
subcontractor, or vendor where such complaints allege a
failure to perform or a violation of the contractual
provisions required by section 2 of this order.

Sec. 5. (a) The Secretary, or any agency or officer in
the executive branch of the Government designated by
rule, regulation, or order of the Secretary, may hold
such hearings, public or private, regarding compliance
with this order as the Secretary may deem advisable.

    (b) The Secretary may hold hearings, or cause
hearings to be held, in accordance with subsection (a)
of this section prior to imposing, ordering, or
recommending the imposition of sanctions under this
order. Neither an order for debarment of any contractor
from further Government contracts under section 6(b) of
this order nor the inclusion of a contractor on a
published list of noncomplying contractors under
section 6(c) of this order shall be carried out without
affording the contractor an opportunity for a hearing.

Sec. 6. In accordance with such rules, regulations, or
orders as the Secretary may issue or adopt, the
Secretary may:

    (a) after consulting with the contracting
department or agency, direct that department or agency
to cancel, terminate, suspend, or cause to be
cancelled, terminated, or suspended, any contract, or
any portion or portions thereof, for failure of the
contractor to comply with the contractual provisions
required by section 2 of this order; contracts may be
cancelled, terminated, or suspended absolutely, or
continuance of contracts may be conditioned upon future
compliance: Provided, that before issuing a directive
under this subsection, the Secretary shall provide the
head of the contracting department or agency an
opportunity to offer written objections to the issuance
of such a directive, which objections shall include a
complete statement of reasons for the objections, among
which reasons shall be a finding that completion of the
contract is essential to the agency's mission: And
provided further, that no directive shall be issued by
the Secretary under this subsection so long as the head
of the contracting department or agency continues
personally to object to the issuance of such directive;
    (b) after consulting with each affected contracting
department or agency, provide that one or more
contracting departments or agencies shall refrain from
entering into further contracts, or extensions or other
modifications of existing contracts, with any
noncomplying contractor, until such contractor has
satisfied the Secretary that such con tractor has
complied with and will carry out the provisions of this
order: Provided, that before issuing a directive under
this subsection, the Secretary shall provide the head
of each contracting department or agency an opportunity
to offer written objections to the issuance of such a
directive, which objections shall include a complete
statement of reasons for the objections, among which
reasons shall be a finding that further contracts or
extensions or other modifications of existing contracts
with the noncomplying contractor are essential to the
agency's mission: And provided further, that no
directive shall be issued by the Secretary under this
subsection so long as the head of a contracting
department or agency continues personally to object to
the issuance of such directive; and
    (c) publish, or cause to be published, the names of
contractors that have, in the judgment of the
Secretary, failed to comply with the provisions of this
order or of related rules, regulations, and orders of
the Secretary.

Sec. 7. Whenever the Secretary invokes section 6(a) or
6(b) of this order, the contracting department or
agency shall report the results of the action it has
taken to the Secretary within such time as the
Secretary shall specify.

Sec. 8. Each contracting department and agency shall
cooperate with the Secretary and provide such
information and assistance as the Secretary may require
in the performance of the Secretary's functions under
this order.

Sec. 9. The Secretary may delegate any function or duty
of the Secretary under this order to any officer in the
Department of Labor or to any other officer in the
executive branch of the Government, with the consent of
the head of the department or agency in which that
officer serves.

Sec. 10. The Federal Acquisition Regulatory Council
(FAR Council) shall take whatever action is required to
implement in the Federal Acquisition Regulation (FAR)
the provisions of this order and of any related rules,
regulations, or orders of the Secretary that were
issued to implement this Executive Order. The FAR
Council shall amend the FAR to require each
solicitation of offers for a contract to include a
provision that implements section 2 of this order.

Sec. 11. As it relates to notification of employee
rights concerning payment of union dues or fees,
Executive Order 12836 of February 1, 1993, which, among
other things, revoked Executive Order 12800 of April
13, 1992, is revoked.

Sec. 12. The heads of executive departments and
agencies shall revoke expeditiously any orders, rules,
regulations, guidelines, or policies implementing or
enforcing Executive Order 12836 of February 1, 1993, as
it relates to notification of employee rights
concerning payment of union dues or fees, to the extent
consistent with law.

Sec. 13. This order is intended only to improve the
internal management of the executive branch and is not
intended to, nor does it, create any right to
administrative or judicial review, or any right,
whether substantive or procedural, enforceable by any
party against the United States, its agencies or
instrumentalities, its officers or employees, or any
other person.

Sec. 14. The provisions of this order shall apply to
contracts resulting from solicitations issued on or
after the effective date of this order.

Sec. 15. This order shall become effective 60 days
after the date of this order.

    (Presidential Sig.)B

THE WHITE HOUSE,

     February 17, 2001.