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First Refusal Rule on Service Contracts Act Effective Jan. 18

The Department of Labor (DOL) Wage and Hour Division Dec. 21, 2012 announced the rule implementing Executive Order 13495, or Nondisplacement of Qualified Workers Under Service Contracts, will become effective Jan. 18

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 when it was issued 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. 

For more information, visit DOL’s webpage on the EO 13495 rule. 


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