Federal contractors can now replace existing workers on government jobs

The US Labor Department removed a rule that made federal contractors keep existing workers when they took over a service contract. This means new contractors can now replace the old workforce with their own staff.

For years, workers on federal service contracts had a measure of job security. New contractors had to keep them. This change means contractors can now bid on government jobs with plans to replace the existing workforce. This could lower labor costs for contractors, but it removes job protections for workers.