Job Corps Centers: Widespread Contract Terminations due to Agency’s “Pause”
What You Need to Know
Key takeaway #1
DOL’s decision to close approximately 100 Job Corps centers and terminate for convenience Job Corps contracts has the potential to adversely impact government contractors running those sites.
Key takeaway #2
Contractors facing a termination should consult with counsel experienced in the preparation of settlement proposals to ensure they are not “leaving money on the table.” Generally, the costs of these legal services are reimbursable by the government in connection with the final settlement.
Client Alert | 1 min read | 06.02.25
On May 29, 2025, the Department of Labor (DOL) announced that it will begin a “phased pause in operations at contractor-operated Job Corps centers nationwide.” The pause is anticipated to occur within a month—by June 30, 2025. To effectuate this pause, DOL has suspended operations at approximately one hundred contractor-operated Job Corps centers. DOL instructed centers to suspend program activities, transition students home, and implement other transition plans. According to DOL’s Frequently Asked Questions, the Department anticipates that students will transition to “state and local workforce partners” including American Job Centers and the Labor Exchange system in their home state.
In addition, contracts for the operation of Job Corps centers will be terminated for convenience. Contractors generally have one year in which to submit their settlement proposals seeking reimbursement of expenses associated with the termination. Contractors should be aware that there are many types of potentially recoverable costs, including lawyer fees incurred in preparing the settlement proposal, in-house time spent, ongoing leases/licenses or early termination costs from ending leases/licenses, upfront costs incurred that were spread (amortized) into monthly prices, storage costs, and certain pre-award costs.
Contacts
Insights
Client Alert | 3 min read | 10.10.25
New Post Appeals Mediation Pilot Program
On October 1, 2025, the IRS Independent Office of Appeals launched a two-year pilot program to make Post Appeals Mediation (PAM) more attractive and accessible to taxpayers. See IRS Announcement 2025-10. The new PAM pilot program offers taxpayers the opportunity to be assigned to a new Appeals team, which is otherwise unconnected to the underlying case, who will represent the original Appeals team in the mediation session. The assignment of the new Appeals team does not begin a new appeals process but rather is intended to help facilitate an expedited and impartial look at the underlying case with the goal of further exploring all potential paths to resolution prior to litigation.
Client Alert | 1 min read | 10.09.25
New California Algorithmic Pricing Law Could Have Far Reaching Effects
Client Alert | 5 min read | 10.08.25
California’s AI Transparency Act (CAITA) May be Amended to Regulate Social Media Platforms
Client Alert | 6 min read | 10.08.25
Hacker No Fly Zone: FAA and TSA Propose Cybersecurity Rules for Drone Ecosystem
