The Department of Labor illegally closed 99 Job Corps centers operated by private contractors without following required procedures under federal law. The court stopped the closures and ruled that DOL violated the Workforce Innovation and Opportunity Act by failing to give public notice, allow a comment period, and notify Congress before shutting down the centers. This matters to construction subcontractors because it reinforces that government agencies must follow proper procedures before terminating contracts, and that courts will block unlawful agency actions even after they've been announced.
Government agencies cannot terminate or close contractor-operated programs without following statutory notice and comment procedures, even if they claim budget or policy reasons.
Subcontractors should monitor the Federal Register for proposed closures affecting their contracts and submit timely comments during required comment periods.