Displaced workers rule pending

      The Labor Dept. on July 15 issued a notice of an upcoming proposed rulemaking to implement President Biden’s Executive Order 14055 on hiring qualified displaced workers for eligible federal services contracts.

      The rule generally will require that vendors taking over a service contract must offer the right of first refusal of employment to qualified workers from the previous contractor.

      The rule will apply to most Service Contract Act-covered contracts over $250,000.

      The stated goal of the order is to promote retention of experienced workers, reducing disruption in the delivery of services and maintaining physical security and cybersecurity during the transfer of the contract.

      The proposed rule would establish standards and procedures for implementing and enforcing the nondisplacement protections under the order.

      Comments are due by Aug. 15.

      In addition, the proposed rule would:

• Specify the obligations of the contractor and of the contracting agency for covered contracts;
• Establish a process to investigate whether workers are being displaced; and
• Set financial penalties for failure to comply with the executive order.

More information:
Federal Register notice: https://bit.ly/3BfpPVW

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