Executive Order 13495, “Nondisplacement of Qualified Workers Under Service Contracts,” requires contractors (including subcontractors) under a contract that succeeds a contract for performance of the same or similar services at the same location to offer the predecessor contractor’s employees a right of first refusal of employment under the contract. The Department of Labor has announced January 18, 2013, as the effective date of the Executive Order. A copy of the DOL's Notice, published in the Federal Register on December 21, 2012, is available at http://www.gpo.gov/fdsys/pkg/FR-2012-12-21/pdf/2012-30595.pdf.

On August 29, 2011, the DOL published its final rule implementing the Executive Order. It stated that the Rule will not take effect until the Federal Acquisition Regulatory Council (FAR Council) issues regulations to amend the Federal Acquisition Regulation. The DOL states in the Notice that the FAR Council will issue its regulations on January 18 and the Rule also will become effective on the same date.

Affected contractors should begin preparation for compliance with the Rule. To assist your preparation, please see the following the articles and webinar: