Nondisplacement of Qualified Workers Under Service Contracts

Document 2023-27072 is a Final Rule published by the Department of Labor in the Federal Register on December 14, 2023, with an effective date of February 12, 2024. This document finalizes regulations to implement Executive Order 14055, "Nondisplacement of Qualified Workers Under Service Contracts" (Executive order or the order), which was signed by President Joseph R. Biden, Jr. on November 18, 2021. The Executive order states that when a service contract with the Federal Government expires and a follow-on contract is awarded for the same or similar services, the Federal Government's procurement interests in economy and efficiency are best served when the successor contractor or subcontractor hires the predecessor's employees, thus avoiding displacement of these employees. The Executive order, therefore, provides that contractors and subcontractors performing on covered Federal service contracts must in good faith offer service employees employed under the predecessor contract a right of first refusal of employment. The Executive order directs the Secretary of Labor (Secretary) to issue regulations, consistent with applicable law, to implement the order's requirements. This final rule establishes standards and procedures for implementing and enforcing the nondisplacement protections of the order. View the original at https://www.federalregister.gov/documents/2023/12/14/2023-27072/nondisplacement-of-qualified-workers-under-service-contracts.

No. Document 2023-27072 is not classified as economically significant under Executive Order 12866. Economically significant rules require OIRA review and are estimated to have impacts of $100 million or more per year.