HR Management & Compliance

New requirement to offer jobs to predecessor contractor’s workers takes effect January 18

by Judith E. Kramer

An Executive Order issued nearly four years ago dealing with employees of federal contractors is set to take effect on January 18.

President Barack Obama signed Executive Order 13495—Nondisplacement of Qualified Workers Under Service Contracts—on January 30, 2009. The order requires that contractors and subcontractors acquiring contracts that succeed contracts for the performance of the same or similar services at the same location must offer the predecessor contractor’s employees a right of first refusal of employment.

Authority to enforce the order lies with the U.S. Department of Labor (DOL), which issued its final regulations on August 29, 2011. The order is just now taking effect because the effective date was postponed until the Federal Acquisition Regulatory (FAR) Council issued its regulations. Both sets of regulations take effect on January 18, meaning that contracting agencies must include the new requirements in solicitations, new contracts, and contract modifications. Contractors’ obligations do not begin until the new requirements are included in the relevant contracting document by the contracting agency.

DOL regulations require successor contractors and subcontractors to offer qualified service employees who worked for the previous contractor jobs under the new contract. Typically, those employees will be presumed to be qualified for positions they held with the previous contractor unless the new contractor or subcontractor has credible written information that an employee failed to perform satisfactorily under the previous contract.

Presenters from Fortney & Scott, LLC, will explain key points of the order during a “Lunch and Learn” session from 12:00 p.m. to 1:00 p.m. (ET) on January 18 at the firm’s office at 1750 K St. NW, Suite 325, Washington, DC. Those wishing to register may click here.

Judith E. Kramer is an attorney with Fortney & Scott and an editor of Federal Employment Law Insider. She provided more details on the new order in the June 2012 issue of the newsletter.