US Department of Labor rescinds previous administration’s final rule addressing displacement of federal contractors

WASHINGTON – The U.S. Department of Labor today announced the rescission of regulations published by the previous administration in 2023 requiring contractors and subcontractors to give qualified employees the right of first refusal of employment with a successor contract. 

On Jan. 20, President Trump issued Executive Order 14148, “Initial Rescissions of Harmful Executive Orders and Actions,” which revoked, among other items, Executive Order 14055. Today’s action fully implements Executive Order 14148 and revokes Executive Order 14055.

Workers and employers can call the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division.

Learn more about the department’s regulatory and deregulatory actions by viewing its semiannual regulatory agenda.