On October 31, 2019, President Donald Trump rescinded an executive order issued by former President Barack Obama that put existing federal contract workers at the front of the line for jobs on the next contract. Executive Order 13,495 . . . required qualified workers on a federal service contract who would otherwise lose their jobs as a result of the completion or expiration of a contract be given the right of first refusal for employment with the successor contractor, according to a fact sheet issued at the time by the Department of Labor’s Wage and Hour Division.
“As far as impact, I think that contractors will largely see it as a good thing that it’s gone, because . . . of the risk of a DOL audit and there are some pesky details of the executive order that makes it challenging for them,” said Nichole Atallah, partner in the labor and employment [and government contracts] practice groups at PilieroMazza law firm.
Among them, contractors have to hold employment offers open for 10 days, and sometimes turnaround time on contracts isn’t 10 days, Atallah said. “But will it change the spirit of what’s happening? Probably not, because most contractors hire the incumbent workforce regardless of the executive order,” she said.
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