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New Burdens for Federal Contractors

BY E. Fredrick Preis, Jr.
November 30, 2009

It is becoming more burdensome under the Obama administration for leasing companies to do business as federal government contractors. In addition to maintaining an Affirmative Action Plan with accompanying statistics, reports, and logs, contractors will now be required to post a notice informing employees of the right to organize a union under the National Labor Relations Act (“NLRA”) and be required to use the federal E-Verify system to authenticate the identity and employment eligibility of job applicants and employees.

New Notice Requirement

On Jan. 30, 2009, President Obama signed Executive Order No. 13496, which requires federal contractors to post notice of their employees' rights to organize and engage in union activities under the National Labor Relations Act. The administration issued the order because, in its opinion, “the attainment of industrial peace is most easily achieved and workers' productivity is enhanced when workers are well informed of their rights under Federal labor laws, including the National Labor Relations Act.”

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