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Employee Rights Concerning Payment of Union Dues or Fees

Beginning June 20 of  2005, OFCCP began including a check of compliance with Executive Order 13201 during compliance evaluations. This Order requires contractors to conspicuously post notice and include the "EO 13201 employee notice clause" or a reference to "29 CRF Part 470" in all their subcontracts and/or purchase orders that exceed $100,000 and were entered into after April 28, 2004.

The EO 13201 notice states that 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, an employer and union may enter into an agreement that all employees must pay periodic dues and initiation fees, but 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  related to collective bargaining, contract administration, and grievance adjustment. One

aim of this Executive Order was to give employees the ability to opt out of paying union dues that were used for political purposes which the employee did not support.

Non-exempt contractors in the following states are required to post the EO 13201 notice:

Non-Right-to-Work States:

Alaska, California, Colorado, Connecticut, Delaware District of Columbia, Hawaii, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania,
Puerto Rico, Rhode Island, Vermont, Washington, West Virginia, Wisconsin.

The following contracts, subcontracts and purchase orders are exempt from the EO 13201 clause requirement:

Contracts equal to or less than $100,000;


Contracts resulting from solicitations before April 18, 2001;

Contracts entered into before April 28, 2004; and

Specific contracts exempted by the Office of Labor-Management Standards in the
national interest pursuant to a written request.

For a printable copy of the notice to be posted, visit http://www.dol.gov/esa/regs/compliance/olms/EO13201posterpg.htm

Employee rights concerning payment of dues or fees must be posted and included in subcontracts and/or purchase orders

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