The Labor Department has formally rescinded its rule requiring successor service contractors to offer jobs to the outgoing contractor’s workers.
The Biden-era mandate has been without effect since January 2025, when President Trump issued E.O. 14148 directing DOL to make the change. This policy has a long history of reversals, with Democratic Presidents issuing nondisplacement mandates and Republican Presidents rescinding them.
Service contractors should update their policies and practices to ensure that they reflect the rescission. Contractors need to be aware that transitions between contractors can still raise complex issues under the National Labor Relations Act.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.