ExecutiveOrdersEO
EO 14055Executive OrderBiden · D

Executive Order 14055

Nondisplacement of Qualified Workers Under Service Contracts

This executive order reinstates worker protections for federal service contract employees by requiring successor contractors to offer a right of first refusal to qualified workers from the predecessor contract. It also encourages continuity of work location and revokes a 2019 Trump-era order that had eliminated these protections.

Federal Register Open PDF 86 FR 66397

Impact dates

  1. Agency senior official grants exception by solicitation date

  2. Employee must accept offer of employment (no less than 10 business days)

  3. Predecessor contractor furnishes certified employee list to Contracting Officer (not less than 10 business days before contract completion)

  4. Secretary of Labor issues final regulations

  5. FAR Council amends Federal Acquisition Regulation (within 60 days of final regulations)

Key directives

  • Require nondisplacement clause in service contracts and subcontracts offering right of first refusal to predecessor's qualified service employees
  • Successor contractors must give employees at least 10 business days to accept employment offers
  • Predecessor contractors must furnish certified employee list to Contracting Officer at least 10 business days before contract completion
  • Agencies must consider and may require same-locality performance in successor contracts
  • Senior agency officials may grant exceptions with written justification by solicitation date
  • Agencies must publish exception descriptions publicly and notify affected workers
  • Secretary of Labor issues final regulations within 180 days
  • FAR Council amends Federal Acquisition Regulation within 60 days of final regulations

Who is ordered

Timeline

Immediate

  • EO takes effect immediately
  • EO 13897 (2019) revoked; EO 13495 (2009) remains revoked

Near term (90d)

  • Secretary of Labor must issue final regulations within 180 days (by May 17, 2022)
  • Agencies encouraged to include nondisplacement clause in solicitations issued before FAR Council action

Long term

  • FAR Council must amend Federal Acquisition Regulation within 60 days of final regulations
  • EO applies to solicitations issued on or after effective date of FAR Council amendments
  • Quarterly exception reporting to OMB begins after implementation

Risks & tensions

  • Potential tension between worker protection goals and contractor flexibility/lower bid costs
  • Exception process (Section 6) could substantially weaken implementation if broadly used; vague standard for 'substantially reduce the number of potential bidders'
  • No private right of action created; enforcement depends entirely on Secretary of Labor initiative
  • Location continuity requirement is discretionary ('consider,' 'if determines') rather than mandatory
  • Quarterly exception reporting to OMB lacks specified public disclosure requirement beyond agency website posting
Executive Order 14055: Nondisplacement of Qualified Workers Under Service Contracts · Executive Orders