FAR 52.222-40—Notification of Employee Rights Under the National Labor Relations Act.
Plain-English Summary
FAR 52.222-40 implements the employee notice requirements associated with Executive Order 13496 and the National Labor Relations Act (NLRA). This clause covers when and how a contractor must post the Department of Labor’s employee notice, including the required physical posting in conspicuous places, the electronic posting requirement when the contractor customarily uses electronic notices for employees, the required link text and location for the online notice, and the requirement to use the official DOL poster or an exact duplicate. It also addresses where the poster may be obtained, the obligation to comply with the Secretary of Labor’s related rules and orders, the consequences of noncompliance such as contract termination, suspension, or debarment, and the subcontract flowdown requirement for covered subcontracts over $10,000 performed wholly or partly in the United States. In practice, this clause is about ensuring workers on covered federal contracts are informed of their NLRA rights to organize and bargain collectively, and it creates both a compliance and supply-chain obligation for contractors. Contractors must treat this as an active labor-posting requirement, not a one-time paperwork item, because the clause reaches physical worksites, electronic notice systems, and subcontract administration. Contracting officers should ensure the clause is included when prescribed and understand that enforcement may involve labor compliance remedies beyond ordinary contract administration.
Key Rules
Post the DOL notice
The contractor must post the employee notice during the term of the contract in conspicuous places where covered employees work on contract-related activities. The notice must be of the size, form, and content prescribed by the Secretary of Labor and must be posted in the languages employees speak, consistent with 29 CFR 471.2(d) and (f).
Use physical and electronic notice
If the contractor customarily posts employee notices electronically, it must also post the required notice electronically on a website it maintains and uses for employee notices about terms and conditions of employment. The electronic posting must prominently display a link to the Department of Labor page containing the full poster text, using the exact link text specified in the clause.
Use the official poster
The required notice may be obtained from the Department of Labor, provided by the agency if requested, downloaded from the DOL website, or reproduced as an exact duplicate of the official poster. The contractor may not alter the required content or substitute a different notice.
Follow DOL rules and orders
The contractor must comply with all provisions of the employee notice and with related rules, regulations, and orders issued by the Secretary of Labor. This makes the clause broader than simple posting; it incorporates the implementing labor regulations and any applicable DOL directions.
Noncompliance has sanctions
Failure to comply with paragraphs (a) through (d) can lead to contract termination or suspension in whole or in part, and the contractor may be suspended or debarred under 29 CFR 471.14 and FAR subpart 9.4. Other sanctions or remedies available under 29 CFR part 471 or other law may also apply.
Flow down to covered subcontracts
The contractor must include the substance of the clause, including the subcontract paragraph, in every subcontract over $10,000 that will be performed wholly or partially in the United States, unless a Labor Department exemption applies. The contractor also may not structure purchases to evade the clause’s coverage.
Cooperate with enforcement
If the Secretary of Labor directs action regarding a covered subcontract, the contractor must take the directed enforcement steps, including sanctions for noncompliance. If litigation with a subcontractor arises from that direction, the contractor may ask the United States, through the Secretary of Labor, to enter the litigation to protect U.S. interests.
Responsibilities
Contracting Officer
Ensure the clause is inserted when prescribed by FAR 22.1605 and understand that the clause creates labor-posting and subcontract flowdown obligations. If requested, the agency may provide the poster to the contractor, and the contracting officer should coordinate with labor compliance officials when issues arise.
Contractor
Post the official employee notice physically and, if applicable, electronically; use the required link text; ensure the notice is in the languages employees speak; comply with all DOL rules and orders; avoid structuring procurements to evade coverage; and flow the clause down to covered subcontracts over $10,000 performed in the United States.
Subcontractor
Comply with the flowed-down notice requirements if the subcontract is covered and not exempt. This includes posting the notice as required and following applicable DOL rules and orders.
Department of Labor
Prescribe the notice’s size, form, and content; make the official poster available; issue implementing regulations, rules, and orders; and direct enforcement actions or sanctions for noncompliance where appropriate.
Federal Agency
Provide the poster if requested by the contractor and support administration of the clause within the contract. The agency may also coordinate with DOL on compliance or enforcement matters.
Practical Implications
This clause is easy to miss because it is not just a poster requirement; it also requires electronic posting if the contractor already uses electronic employee notices. Contractors should review HR portals, intranets, and onboarding systems to make sure the required link appears exactly as prescribed.
The physical posting requirement applies only where covered employees engage in contract-related activities, but that can include multiple plants, offices, or job sites. A common mistake is posting only at headquarters or only at one location.
The poster must be the official DOL notice or an exact duplicate, so contractors should not edit the language, add company branding that obscures the notice, or use outdated versions. They should also ensure the notice is available in the languages employees actually speak.
Flowdown administration matters: covered subcontracts over $10,000 performed wholly or partly in the United States must include the substance of the clause unless exempt. Contractors should build this into subcontract templates and purchasing controls to avoid accidental omissions.
Noncompliance can trigger labor enforcement consequences beyond ordinary contract remedies, including suspension or debarment. Contractors should treat this as a compliance control item and document where and how the notice is posted, especially after workforce, location, or website changes.
Official Regulatory Text
As prescribed in 22.1605 , insert the following clause: Notification of Employee Rights Under the National Labor Relations Act (Dec 2010) (a) During the term of this contract, the Contractor shall post an employee notice, of such size and in such form, and containing such content as prescribed by the Secretary of Labor, in conspicuous places in and about its plants and offices where employees covered by the National Labor Relations Act engage in activities relating to the performance of the contract, including all places where notices to employees are customarily posted both physically and electronically, in the languages employees speak, in accordance with 29 CFR471.2 (d) and (f). (1) Physical posting of the employee notice shall be in conspicuous places in and about the Contractor’s plants and offices so that the notice is prominent and readily seen by employees who are covered by the National Labor Relations Act and engage in activities related to the performance of the contract. (2) If the Contractor customarily posts notices to employees electronically, then the Contractor shall also post the required notice electronically by displaying prominently, on any website that is maintained by the Contractor and is customarily used for notices to employees about terms and conditions of employment, a link to the Department of Labor’s website that contains the full text of the poster. The link to the Department’s website, as referenced in (b)(3) of this section, must read, "Important Notice about Employee Rights to Organize and Bargain Collectively with Their Employers." (b) This required employee notice, printed by the Department of Labor, may be- (1) Obtained from the Division of Interpretations and Standards, Office of Labor-Management Standards, U.S. Department of Labor, 200 Constitution Avenue, NW., Room N-5609, Washington, DC 20210, (202) 693-0123, or from any field office of the Office of Labor–Management Standards or Office of Federal Contract Compliance Programs; (2) Provided by the Federal contracting agency if requested; (3) Downloaded from the Office of Labor–Management Standards Web site at http://www.dol.gov/olms/regs/compliance/EO 13496.htm ; or (4) Reproduced and used as exact duplicate copies of the Department of Labor’s official poster. (c) The required text of the employee notice referred to in this clause is located at Appendix A, Subpart A, 29 CFR Part 471 . (d) The Contractor shall comply with all provisions of the employee notice and related rules, regulations, and orders of the Secretary of Labor. (e) In the event that the Contractor does not comply with the requirements set forth in paragraphs (a) through (d) of this clause, this contract may be terminated or suspended in whole or in part, and the Contractor may be suspended or debarred in accordance with 29 CFR 471.14 and subpart 9.4 . Such other sanctions or remedies may be imposed as are provided by 29 CFR part 471 , which implements Executive Order 13496 or as otherwise provided by law. (f) Subcontracts. (1) The Contractor shall include the substance of this clause, including this paragraph (f), in every subcontract that exceeds $10,000 and will be performed wholly or partially in the United States, unless exempted by the rules, regulations, or orders of the Secretary of Labor issued pursuant to section 3 of Executive Order 13496 of January 30, 2009, so that such provisions will be binding upon each subcontractor. (2) The Contractor shall not procure supplies or services in a way designed to avoid the applicability of Executive Order 13496 or this clause. (3) The Contractor shall take such action with respect to any such subcontract as may be directed by the Secretary of Labor as a means of enforcing such provisions, including the imposition of sanctions for noncompliance. (4) However, if the Contractor becomes involved in litigation with a subcontractor, or is threatened with such involvement, as a result of such direction, the Contractor may request the United States, through the Secretary of Labor, to enter into such litigation to protect the interests of the United States. (End of clause)