The U.S. Department of Labor (DOL) has published a final rule requiring federal contractors and subcontractors on covered service contracts to offer employees employed under a predecessor contract a right of first refusal of employment on a successor contract. The rule will take effect February 12, 2024. It restores a policy implemented by the Obama Administration and reversed by the Trump Administration. It will apply to contracts such as those for security, janitorial, cafeteria, and grounds maintenance services valued at or above $250,000 that are covered by the Service Contract Act (SCA).
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.