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U.S. Department of Labor Publishes Notice of Proposed Rulemaking on Nondisplacement of Qualified Workers Under Service Contracts

July 14, 2022

On July 14th, 2022, the Department of Labor announced an Notice of Proposed Rulemaking (NPRM) to implement the executive orders of President Biden made late last year. The order requires that contractors and subcontractors working on covered federal service contracts (i.e., most SCA-covered contracts over $250,000) must, in good faith, offer service employees employed under the predecessor contract a right of first refusal of employment on the successor contract.

Possible positive impacts from the proposed rule include:

  • Making federal procurement more efficient by reducing worker turnover and preventing disruptions in federal services.
  • Keeping skilled workers in their jobs.
  • Making it easier for employers to find workers who are already trained for the job.
  • Saving taxpayer dollars by improving the efficiency of federal procurement.

The Department of Labor encourages interested parties to submit comments on the NPRM by 11:59 p.m. ET on August 15, 2022.

You can view the full press release below:

US Department of Labor proposes rule to provide workers on federal service contracts right of first refusal of employment | U.S. Department of Labor (