Do the requirements of the Act and regulations preempt collective bargaining agreements?
These requirements coexist with the collective bargaining process. Compliance with the requirements of the Act is a condition of receiving a Federal grant or contract. Preemption is not an issue. The Act and regulations do not claim to compel any change in labor-management agreements. Of course, labor and management cannot, through a collective bargaining agreement, nullify a grant or contract condition based on Federal law. Federal agencies are not compelled to provide grants or contracts to organizations that fail to comply with a statutorily imposed grant or contract condition, for whatever reason. However, where the regulations provide discretion about the mode of compliance with the regulations (e.g., an employer may either take disciplinary action against an employee convicted of a criminal drug offense resulting from a violation occurring in the workplace, or refer the employee for rehabilitation), labor and management may determine the mode of compliance through collective barg