Nondisplacement of Qualified Workers Under Service Contracts
Service Contractors Must Offer Predecessor Workers a First Refusal
What it does
Agencies must include a contract clause requiring contractors to offer predecessor service employees a right of first refusal before hiring others.
Real-world impact
- Gives predecessor service workers priority for rehiring by successor contractors.
- Requires contractors to provide employee lists and employment anniversary dates.
- Allows the labor department to enforce penalties, including debarment for noncompliance.
Topics
Summary
This order requires that when a federal service contract is replaced, the successor contractor and its subcontractors must offer the predecessor's non‑managerial service employees a right of first refusal for jobs they are qualified to fill before hiring others. Agencies must include this clause in solicitations and may exempt contracts in limited cases.
It affects service employees, contractors, subcontractors, and the agencies that buy services. The order aims to reduce service disruption, retain trained workers, and promote efficiency in federal contracting.
Questions, answered
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- “What agencies are affected by this order?”
- “How does this order change existing policy?”
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