New Rule would Protect Jobs of Many Contractor Employees

May 8, 2012

A company that wins a federal services contract from another vendor would have to hire the predecessor firm's employees, under a proposed new federal contracting rule.

The rule, issued Tuesday by the Federal Acquisition Regulatory Council, aims to carry out a 2009 executive order that seeks to reduce disruption during contract transitions and retain experienced workers.

The Labor Department issued a similar rule in August. The FAR council's proposed rule would officially add it to federal regulations, which would require agencies to add the rule as a clause in contracts.

Contractors and agencies have another chance to voice their opinions on the rule until July 2. 

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