The Department of Labor (DOL) published a final rule on August 29, 2011 implementing Executive Order #13495 on “Non -Displacement of Qualified Workers” under SCA contracts. This rule will not be effective until the Federal Acquisition Council issues regulations, which should happen very soon. It will pertain to every contract under the Service Contract Act and the only exemptions must be approved by the head of the contracting department. Employees of the predecessor contractor must work for three months before being eligible “to be offered the first right of refusal“. An employment offer must be made to all the predecessor employees in writing or electronically. The predecessor employees will be given ten days to accept an offer from the successor contractor. All workers eligible must be service employees. A successor can refuse to hire a predecessor employee if they can prove that the employee is not qualified. The predecessor must provide a list of their employees within ten days before the end of their contract. The prime contractor is also responsible to ensure that these rules are flowed down to all their subcontractors. The DOL’s Wage and Hours Division will be responsible for auditing these rules.
Earlier, on August 10, 2011, the Office of Federal Contract Compliance Programs (OFCCP) published an advance notice of proposed rulemaking in the Federal Register on a new Compensation Data Collection Tool. OFCCP is increasing its audit and investigative activity, and this would be another tool to root out non-compliance with Equal Employment Opportunity and anti- discrimination requirements. While a proposed rule is likely in the next several months, a number of questions regarding the scope and details of the data collection tool and related items must be addressed.
The Professional Services Council’s (PSC) Labor Relations Committee has invited OFCCP to speak at their next meeting on September 21, 2001 in Arlington, VA. They will be exploring these two important rules, both of which have wide ranging implications for the government services industry.
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 or contact us by e-mail and we will work with you to create a plan that meets your fringe benefit obligations and provides your employees with valuable benefits.