Starting Jan. 18, federal contractors that win services contracts must offer to first hire the workers from the company that previously performed the work.

The program puts into effect an executive order of 2009.

The Labor Department published a final rule in August 2011, and the Defense Department, General Services Administration and NASA issued a proposed rule in May 2012. The latter became final in December.

The new regulations apply specifically to services, including janitorial services. They do not apply to professional services.

Small businesses are not exempt from the new regulation, according to the Federal Register notice describing the final rule.

Labor officials estimated that 28,800 small entities will be subject to its regulation and the majority will incur compliance costs of less than $100. Many contractors presumably would hire qualified employees previously performing the same job even if it was not required.

The rule does not apply to contracts awarded under the simplified acquisition threshold of $150,000, nor to contracts under the AbilityOne program for disabled workers.

More information: Federal Register notice, final rule: http://goo.gl/9tUEL
Proposed rule http://goo.gl/pXC3i