Final Rule on Nondisplacement of Workers Performing Service Contracts

On December 21, 2012, the government issued a final rule that requires incoming contractors to offer qualified employees of the predecessor contractor and its subcontractors a right of first refusal of employment if the positions are covered by the Service Contract Act, unless a waiver is obtained or an exception applies. The rule, which is effective January 18, 2013, implements Executive Order 13495 and the Labor Department's regulations on Nondisplacement of Qualified Workers Under Service Contracts.