In 1988, in its decision in Communications Workers of America v. Beck, the United States Supreme Court ruled that unions could not spend the dues or fees collected from employees who were not union members on certain activities, such as organizing the employees of other employers, lobbying for labor legislation, and participating in social, charitable, and political events.  The dues could only be used for collective bargaining, labor contract administration, or grievance adjustment.  These rights became known as the “Beck rights.”  In March 2004, the United States Department of Labor enacted final regulations making it mandatory for government contractors to post notices informing employees of their Beck rights and also of the fact that they cannot be forced to join the union in order to keep their jobs. 

The rights set forth in Beck apply to all employees.  However, the posting requirement applies only to entities contracting directly with the federal government and to entities dealing directly with those contractors.  It does not apply to federally assisted contracts, meaning construction contracts for work that is paid for with funds obtained, either directly or indirectly, from the federal government.  The notice requirement may be met by the posting of 8.5” x 11” downloadable poster.  Entities subject to the rules must also place the employee notice clause in their subcontracts and purchase orders.

The posting of the Beck rules has been a political hot potato for many years.  In 1992, President George H. W. Bush issued an executive order implementing the Supreme Court’s ruling.  The following year, however, President Bill Clinton revoked Bush’s order with another.  In February 2001, President George W. Bush revoked Clinton’s order with his own.  Finally, the Department of Labor issued proposed rules to implement George W. Bush’s order.  It is the final version of those rules that are now in effect.

Noncompliance with the new rules may result in cancellation or termination of government contracts and debarment from entering into future contracts with the government.  Entities excluded from the posting requirements include those with fewer than 15 employees and work sites where no union has been formally recognized as the exclusive bargaining representative for the contractor’s employees.