President Biden has signed a new executive order that, once implemented, will require a successor contractor that takes over the operation of a service contract covered by the federal Service Contract Act (SCA) to extend employment offers to the predecessor contractor’s employees. The predecessor contractor, in turn, must provide a list of the employees eligible for that offer.
President Biden’s Executive Order (E.O.) 14055, Nondisplacement of Qualified Workers Under Service Contracts, essentially restores the SCA nondisplacement rules implemented under E.O. 13495, which was signed by President Obama in January of 2009 and remained in place until it was rescinded by President Trump in 2019.
The Biden E.O. applies to most new contract solicitations subject to the SCA, but will go into effect only after a lengthy rulemaking process that is expected to conclude sometime in 2022. In the meantime, there is no nondisplacement requirement with respect to existing SCA-covered contracts.
Members of the Center for Workplace Compliance (CWC) can read more here.