EO 14055 Proposed Rules Require Successor Contractors to Once Again Offer First Right of Refusal to Predecessor Workers

On July 15, 2022, the U.S. Department of Labor (DoL) published a 160-page Notice of Proposed Rulemaking (NPRM) to implement Executive Order (EO) 14055, “Nondisplacement of Qualified Workers Under Service Contracts,” seeking to once again require successor contractors to give a right of first refusal of employment to certain employees of predecessor contractors. EO 14055 was the latest development in the long history of the Nondisplacement of Qualified Workers rule, which, as we previously discussed, the prior Trump Administration had revoked to provide successor contractors with more flexibility when staffing. The Biden Administration, however, believes that the proposed nondisplacement rule will lead to less disruption in services due to a carryover workforce as well as a more experienced, well-trained workforce providing such services. Regardless of the political dynamics, contractors should take note of the new requirements in the NPRM and how it might impact their operations. 

Read the full blog post.