DOL Finalizes Executive Order and Summarizes SCA Audits

DOL Finalizes Executive Order # 13495

Executive order # 13495 pertaining to “ Nondisplacement of Qualified Workers” was finalized on January 18, 2013. The ruling ensures qualified workers on a Federal Service Contract who would otherwise lose their jobs as a result of the completion or expiration of a contract will be given the right of first refusal for employment, with the successor contractor. Generally, a successor contractor may not hire any new employees under the contract until the right of first refusal has been provided. This order applies to a successor for the performance of the same or similar services at the same location.

This order defines service contracts or contract to mean any contract or subcontract for services entered into by the Federal Government or its contractors that is covered by the McNamara-O’Hara Service contract Act.

You can review FAR 52.222-17 for more comprehensive details about this new executive order. Also, look at Fact Sheet # 67A: Nondisplacement of Qualified Workers on that provides a more detailed explanation about the order and whom to contact if you have more questions.

DOL Audit Statistics for FY 2012

In Fiscal Year 2012, the Wage and Hour Division (WHD) in Washington DC collected more than $32 million dollars in back wages for underpaid Davis Bacon workers as the result of more than 50 project investigations. The Branch’s work exceeded the overall strategic plans call for an increase in enforcement of the Service Contract Act.

The coordination of this goal resulted in resolving 858 SCA cases and collecting $44,888,935 in back wages for approximately 15.6 million service employees. Of the 858 cases, 634 were found in violation under SCA. In addition there were 19 SCA debarments processed in FY 2012.

Having knowledgeable personnel capable of handling a DOL audit can protect you from wage settlements and possible debarment. For more information contact MARAL, LLC ( and set up a one-day SCA/DBA training seminar for your employees.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your fringe-benefit obligations and provides your employees with valuable benefits.