§ 262. Transfer of employees. Upon the transfer of functions to the department of transportation pursuant to this chapter, provision shall be made for the transfer to the department of transportation of such employees of the department of public works who are engaged in carrying out such functions as the commissioner of transportation may deem necessary for the exercise of the functions of the transportation department. Employees so transferred shall be transferred without further examination or qualification and shall retain their respective civil service classifications and status. For the purpose of determining the employees holding permanent appointment in competitive class positions to be transferred, such employees shall be selected within each class of positions in the order of their original appointment, with due regard to the right of preference in retention of disabled and nondisabled veterans. Any such employee who, at the time of such transfer, has a temporary or provisional appointment shall be transferred subject to the same right of removal, examination or termination as though such transfer had not been made. Employees holding permanent appointments in competitive class positions who are not transferred pursuant to this section shall have their names entered upon an appropriate preferred list for reinstatement pursuant to the civil service law.