The U.S. Department of Labor today announced the rescission of regulations published by the previous administration in December 2023. These regulations, Nondisplacement of Qualified Workers Under Service Contracts, implemented Executive Order 14055.  

By rescinding the regulations, the department is delivering on the President’s agenda to unburden industry by giving federal service contractors greater flexibility during contract transitions. With these regulations rescinded:  

• Successor contractors are not required to offer jobs to qualified incumbent workers before hiring new employees. 

• Employers have more discretion to structure their workforce based on current contract needs and performance goals. 

• Staffing decisions during transitions can better align with operational priorities and efficiency. 

For more information visit WHD’s compliance assistance resources for federal contractors to understand which labor requirements still apply and how to stay compliant: https://www.dol.gov/agencies/whd/government-contracts