What happened?

On January 20, 2025, the new administration signed Executive Order (EO) 14148, rescinding EO 14055. This change significantly affects federal service contractors, allowing them more flexibility in staffing their programs.

Overview:

Rescission of EO 14055: Federal contractors are no longer obligated to offer their predecessor’s employees jobs.

• Impact on Hiring: Contractors can now hire new employees without offering positions to the previous contractor’s staff.

• Practical Implications:
  • Contract Provisions: Contractors should review contract provisions and agency rules.
  • Agency Directives: Expect agency officials to direct contracting officers to remove clauses related to EO 14055 from existing and new contracts.

Additional Details

• Union Recognition: New contractors are not required to recognize or bargain with existing unions.

• Background: EO 14055, issued by the Biden administration in 2021, required federal contractors to offer jobs to their predecessor’s employees before hiring new workers, applying to service contracts worth at least $250,000 and covered by the Service Contract Act.
  • The order aimed to retain skilled workers and require new contractors to recognize existing unions.

Source References

• EO 14148: Initial Rescissions Of Harmful Executive Orders And Actions
• Federal Register: EO 14148
• Nondisplacement of Qualified Workers Under Service Contracts Rule is Back (VensureHR)

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