NLRA Poster Requirements

[jenee]

There has been some confusion brewing following the latest labor relations order. There are two issues at hand.
1. The requirement for displaying the new NLRB poster (available on the DOL website) and
2. The requirement to have an Affirmative Action Plan.

After discussions with my attorney, compliance experts, and the DOL directly, I have concluded that all federally insured (FDIC or NCUA) financial institutions are indeed considered "government contractors" for both purposes, even if you don't issue or redeem US Savings Bonds. Here is just a small piece of the transcript from a DOL web conference. The speaker was the Director of the Office of Federal Contract Compliance Programs (OFCCP).:

9:26 Comment From PC: What are the obligations for credit unions under the Executive Order?

9:26 Patricia: PC, Thank you for your question. Credit unions are covered under the Executive Order if they are federal contractors or federal subcontractors. For example, a credit union with FDIC (NCUA) Insurance or that is an issuing and pay agent for U.S. savings bond and savings notes is covered. Like other covered contractors, a covered credit union must provide equal opportunity for applicants and employees based on race, gender, national origin, color and religion. They must develop an affirmative action program if they have at least 50 employees and a contract or subcontract of at least $50,000 or if they are a depository and paying agent for savings bonds and notes.

So, bottom line (as I see it) is that, unless you get advice from your attorney that directs you differently, we all better ensure that we display the NLRA poster and consider implementing an affirmative action plan.

Cheers!
Jenee

[rebeccanixon]

Great information! Thanks for sharing!

Rebecca

[jenee]

Just one more follow up on this topic and then I'll leave it alone. I did, finally, get an opinion back from the OFCCP compliance guru.

A bank or other financial institution is a covered contractor if it has an arrangement that meets the definition of a “government contract.” In general, OFCCP interprets “government contract” under Executive Order 13496 as it has under Executive Order 11246. Thus, a bank, or other financial institution, that obtains Federal deposit insurance, acts as an issuing and paying agent for U.S. savings bonds/notes or is a federal fund depository is a government contractor for purposes of both EO 11246 and EO 13496. In addition, these entities may be covered contractors if they have any other arrangement that meets the definition of a “government contract” under the regulations. Such entities are subject to EO 13496 to the same extent as are other Federal contractors.

[MichelleP]

I thought I would share this posting from Lawroom.com:

"Q. Do financial institutions need to comply with the employee notice posting?"

"A. Financial institutions that are fund depositories are clearly subject to the employee notice posting. OFCCP has advised that it believes that financial institutions that are issuing and paying agents for U.S. savings bonds and notes also must post the notice, but there is no such regulatory requirement. We anticipate that OFCCP soon may change its position on this issue. Finally, OFCCP believes that receipt of federal deposit insurance requires financial institutions to post the notice, but this has never been conclusively litigated and again, this requirement is not contained in the Executive Order or the Final Rule."

We have included this in our poster packet, in order to ensure compliance. What's one more poster, right??