[Weekly Compilation of Presidential Documents Volume 37, Number 8 (Monday, February 26, 2001)]
[Pages 306-309]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Executive Order 13201--Notification of Employee Rights Concerning 
Payment of Union Dues or Fees

February 17, 2001

    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.

[[Page 307]]

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

[[Page 308]]

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

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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.
                                                George W. Bush
The White House,
February 17, 2001.

[Filed with the Office of the Federal Register, 11:15 a.m., February 21, 
2001]

Note: This Executive order was published in the Federal Register on 
February 22.