Worker Nondisplacement (E.O. 14055)

Summary

Requires that new contractors for federal services give the first chance for jobs to the qualified workers from the old contract.

What problem does this solve?

When a government service contract changes to a new company, experienced workers often lose their jobs, which can disrupt services. This order helps prevent these job losses by requiring the new company to offer jobs to the old, qualified employees first.

What does this order do?

Right of first refusal for jobs

Requires a new contractor to offer jobs to the qualified employees of the previous contractor before hiring anyone else. Employees must be given at least 10 business days to accept the offer.

Enforcement by the Secretary of Labor

Gives the Secretary of Labor the power to investigate violations and punish non-compliant contractors. Punishments can include being banned from receiving government contracts for up to three years.

Consideration for keeping work in the same place

Directs government agencies to consider requiring that contract work continue to be performed in the same location. This helps ensure efficiency and prevents local workers from losing their jobs.

Exceptions to the rule

Allows a senior official at an agency to grant an exception to these rules. An exception can be made if following the rule would hurt competition or not be in the government's best interest.

Revokes a previous executive order

Cancels Executive Order 13897, which had removed similar worker protections that were in place before.

Excludes small contracts

States that these rules do not apply to contracts below the simplified acquisition threshold, which are typically smaller government purchases.

Who does this affect?

Federal service contract workers
Companies with federal service contracts
Federal government agencies

What is the real world impact?

•

Ensures continuity of government services

Keeps experienced and well-trained workers in their jobs when a government contract changes hands. This prevents disruptions in service, maintains security, and saves the government money on training new people.

•

Protects workers' jobs

Provides job security for employees working under federal service contracts. This prevents them from being suddenly unemployed just because the government awarded the contract to a different company.

When does this start?

This order is effective immediately and sets several deadlines for new rules to be created.

Regulations from the Secretary of Labor

The Secretary of Labor must issue final rules to put this order into practice within 180 days of November 18, 2021.

Update to federal purchasing rules

The Federal Acquisition Regulatory Council must update government-wide purchasing rules within 60 days after the Secretary of Labor issues their regulations.

Job offer acceptance period

Employees offered a job by a new contractor must be given at least 10 business days to decide whether to accept it.