On May 7, the U.S. Circuit Court of Appeals for the D.C. Circuit ruled that the National Labor Relations Board (NLRB) cannot require employers to display a poster that notifies workers of their rights under the National Labor Relations Act (NLRA). (The full decision by the D.C. Circuit Court can be found on our website.) The NLRB's poster informs employees of their rights to join a union and describes various actions that are illegal under the NLRA.
It is not clear how this decision affects the requirement to display a nearly identical poster under Executive Order 13496. Executive Order (E.O.) 13496 is enforced in part by OFCCP. OFCCP compliance officers are instructed to look for the E.O. 13496 poster during on-site investigations, and to review purchase orders and various materials for compliance with other provisions of the executive order.
While the employee rights poster may be problematic for some federal contractors and subcontractors, we would suggest that companies going through an affirmative action compliance review contact legal counsel before removing the poster. OFCCP may contend that the obligation to display the poster is one of the actions that federal contractors and subcontractors voluntarily undertake when they choose to take federal funds.
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