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President Biden Reinstates Executive Order On Nondisplacement Of Qualified Workers

December 14, 2021

President Biden issued an Executive Order (Order) reinstating the Nondisplacement of Qualified Workers Under Service Contracts.

The Biden Executive Order essentially reinstates a policy that requires successor federal contractors, in certain circumstances, to offer a right of first refusal of employment to employees working under the predecessor contract.

The Executive Order directs the Department of Labor to develop regulations, and then the FAR Council to create a contract clause to apply to new solicitations. However, “agencies are strongly encouraged” to include the new contract clause in solicitations issued before the FAR clause is final.

Employees working on predecessor contracts covered by the Service Contract Act, and meeting other requirements, who would be terminated as a result of the contract’s end, should be offered by the successor “a right of first refusal of employment under this contract in positions for which those employees are qualified.”

A copy of the Executive Order can be found here: