DOLFinal Rule
Nondisplacement of Qualified Workers under Service Contracts; Rescission of Regulations
Labor & WorkplaceOther
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Summary
The Department of Labor is removing rules that required companies to keep existing workers employed when taking over service contracts from other companies. This change means workers who were doing jobs like cleaning, security, or maintenance at federal buildings could lose their positions when a new contractor takes over.
Key Points
- 1The rule cancels worker protection requirements that previously prevented layoffs when service contracts changed hands at federal facilities
- 2Workers in service jobs like custodial, security, and food service roles are most affected by losing these job protections
- 3Companies winning new federal contracts will no longer be required to hire the previous contractor's workers at comparable wages and benefits
- 4This primarily impacts workers on federal government contracts, though similar protections in other labor laws may still apply
- 5The change takes effect immediately, meaning service contract transitions going forward will not have these displacement protections
Key Dates
Published
December 22, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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