Nondisplacement of Qualified Workers Under Service Contracts
Feb 4, 2009
Signed by: Barack Obama
Signed on: Jan 30, 2009
Published on: Feb 4, 2009
Feb 4, 2009
Signed by: Barack Obama
Signed on: Jan 30, 2009
Published on: Feb 4, 2009
Summary
Makes new government service contractors offer jobs to the old contractor's workers before hiring new people to do the same work.
What problem does this solve?
When a government service contract changes hands, the new company sometimes fires all the old workers. This causes service disruptions and loses an experienced workforce. This order requires the new company to offer jobs to qualified workers from the old company first, ensuring a smooth transition.
What does this order do?
Creates a right of first refusal for jobs
Requires a new contractor to offer jobs to the qualified employees of the previous contractor before hiring anyone else for the same work.
Adds a required clause to government contracts
Mandates that all relevant government service contracts include a specific section outlining the rules for hiring the previous contractor's workers.
Grants enforcement power to the Secretary of Labor
Allows the Secretary of Labor to investigate violations, order remedies like back pay, and ban non-compliant companies from receiving government contracts for up to three years.
Excludes certain types of contracts
Specifies that these rules do not apply to small contracts, contracts with workshops for the severely handicapped, or certain vending facility agreements.
Allows agencies to exempt contracts
Permits the head of a government agency to waive these requirements for a contract if it would be more economical or efficient to do so.
Revokes a previous executive order
Cancels Executive Order 13204 from 2001, which had different rules regarding this issue.
Who does this affect?
- Federal service contract workers
- Companies with federal service contracts
- Federal government agencies
What is the real world impact?
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Promotes government efficiency
Keeps experienced workers on the job when a government contract changes hands. This avoids service disruptions and saves money on training new staff, making government operations smoother.
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Protects workers' jobs
Gives employees on federal service contracts job security by requiring new contractors to offer them a job first. This prevents them from being suddenly unemployed when a contract ends.
When does this start?
This order is effective immediately and sets deadlines for new regulations to be created.
Deadline for new regulations
The Secretary of Labor and the Federal Acquisition Regulatory Council must issue rules to put this order into practice within 180 days of January 30, 2009.