Government Contracts Executive Order on Worker Displacement Revoked
Monday, December 9, 2019

Executive Order on Worker Displacement Revoked

By Government Contracts Editorial Staff

President Trump has issued Executive Order 13897, Improving Federal Contractor Operations by Revoking Executive Order 13495. E.O. 13495, Nondisplacement of Qualified Workers Under Service Contracts, issued by President Obama on January 30, 2009, required successor contractors to offer, in certain circumstances, a right of first refusal of employment to employees employed under a predecessor contract. Federal Acquisition Circular 2005-64 subsequently implemented E.O. 13495 in the Federal Acquisition Regulation at FAR Subpart 22.12 and FAR 52.222-17. These sections set forth a policy to require service contractors and their subcontractors under successor contracts to offer employees of the predecessor contractor and its subcontractors a right of first refusal of employment for positions for which they are qualified. E.O. 13897, dated October 31, 2019, directs the Secretary of Labor, the Federal Acquisition Regulatory Council, and agency heads to move promptly to rescind orders, rules, regulations, guidelines, programs, and policies implementing or enforcing E.O. 13495.

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