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Worker Protection: Federal Contractors and Violations of Labor Law

HEHS-96-8 Published: Oct 24, 1995. Publicly Released: Oct 24, 1995.
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Highlights

Pursuant to a congressional request, GAO provided information on the extent to which federal contractors violate the National Labor Relations Act (NLRA), focusing on: (1) the characteristics associated with these NLRA violators; and (2) ways to improve federal contractors' compliance with NLRA.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
National Labor Relations Board The Chairman and General Counsel, NLRB, and the Administrator, GSA, should develop an information arrangement approach to facilitate the identification of violators who receive federal contracts.
Closed – Implemented
NLRB issued regulations enabling it to use administrative and tax refund offsets to collect money from labor law violators, including those who receive federal contracts, who failed to comply with an NLRB order to restore wages. Through administrative offset, NLRB may request other federal agencies to withhold money owed to it from violators' contract payments, and through tax refund offset, it may request IRS to withhold debts owed to NLRB from violators' income tax refunds. NLRB is making full use of offsets. Although the action taken by NLRB is different than what GAO recommended, it is consistent with the spirit of the recommendation and could enhance NLRB's enforcement of the act more than GAO anticipated. Using offsets to collect debts owed by all violators, rather than only federal contractors, could result in NLRB settling cases more quickly, avoiding lengthy contempt proceedings, gaining cost savings to NLRB and the government from less litigation, and collecting more overdue judgments.
General Services Administration The Chairman and General Counsel, NLRB, and the Administrator, GSA, should develop an information arrangement approach to facilitate the identification of violators who receive federal contracts.
Closed – Not Implemented
No action is intended by GSA because NLRB decided to pursue enforcement of the offset provision with the Treasury Department and IRS. GSA, in turn, provides the quarterly data to IRS on federal contractors that NLRB needs to enforce this provision.

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Topics

Administrative remediesCollective bargainingContractor violationsEmployee dismissalEmployment discriminationFederal procurementLabor relationsLabor lawProposed legislationDatabase management systems