The Department of Labor (DOL) Wage and Hour Division Aug. 26 released a final rule implementing
Executive Order 13495, or Nondisplacement of Qualified Workers Under Service Contracts.
Under the final rule, federal agencies are required to include in contracts for projects covered by the McNamara-O’Hara Service Contract Act of 1965 (SCA) clauses that require contractors and subcontractors to offer employment to any employees (other than managerial or supervisory employees) that worked on predecessor contracts or subcontracts.
ABC
opposed the proposed rule in May 2010 due to the negative impact it would have on small businesses, particularly ABC members that operate small construction firms and are covered by the SCA when performing certain maintenance and other post-construction responsibilities.
The rule will not have an effective date until the Federal Acquisition Regulatory Council issues regulations. Once the effective date is established, DOL will publish it in the
Federal Register.