Improving Federal Contractor Operations by Revoking Executive Order 13495

Nov 5, 2019

Summary

Ends the requirement for new federal contractors to offer jobs to the employees of the previous contractor.

What problem does this solve?

The old rule forced new government contractors to hire workers they might not need or want. This order removes that rule to give contractors more freedom in hiring.

What does this order do?

Revokes Executive Order 13495

Cancels the previous order that required new federal contractors to offer a right of first refusal for jobs to the employees of the old contractor.

Ends all related rules and policies

Directs the Secretary of Labor and other federal agencies to get rid of any rules, regulations, or policies that were created to enforce the old order.

Stops all current investigations

Requires the Secretary of Labor to immediately stop any ongoing investigations or actions related to compliance with the now-revoked Executive Order 13495.

Who does this affect?

Federal contractors
Employees of federal service contractors

What is the real world impact?

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Increases flexibility for federal contractors

Gives companies that win new government contracts the freedom to hire their own employees instead of being required to keep the workers from the previous company. This can lower costs and increase efficiency.

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Reduces job security for contractor employees

Removes a protection for workers on federal service contracts. When a contract changes hands, the existing employees no longer have the right to be offered a job by the new company, which could lead to job losses.

When does this start?

This order takes effect immediately as of October 31, 2019.