Revocation of Executive Order on Nondisplacement of Qualified Workers Under Certain Contracts

President George W. Bush revoked Executive Order 12933, which had required contractors on federal building projects to offer right of first refusal to employees of previous contractors. The order immediately terminates all related investigations and directs agencies to promptly rescind implementing regulations.

Federal Register Open PDF 66 FR 11228

Impact dates

Date TBD
Rescission of implementing orders, rules, regulations, guidelines, or policies by Secretary of Labor, FAR Council, and agency heads
Feb 17, 2001
Termination of investigations and compliance actions

Key directives

Revoke EO 12933 (right of first refusal for successor contractors)
Rescind all implementing orders, rules, regulations, guidelines, or policies
Terminate all investigations and compliance actions effective immediately

Who is ordered

Timeline

Immediate

Revocation of EO 12933 takes effect
Termination of all investigations and compliance actions based on EO 12933

Near term (90d)

Secretary of Labor, FAR Council, and agency heads to rescind implementing orders, rules, regulations, guidelines, or policies

Long term

Shift in federal contracting norms away from successor worker retention requirements
Potential precedent for future revocation of labor-protective contracting rules

Risks & tensions

Vague 'promptly' timeline for rescission creates implementation uncertainty; no fixed deadline
Potential legal tension if rescission conflicts with underlying statutes or collective bargaining agreements
Removes labor stability mechanism without replacement policy—may increase job displacement in federal construction sector