Labor & Employment Law Daily Wrap Up, FEDERAL REGULATIONS—Rescission of regulations implementing EO 14055 announced, (Dec 19, 2025)
By Brandi O. Brown, J.D.
The final rule rescinding the regulations, which required successor contractors on federal service contracts to offer jobs to qualified workers from the predecessor contract, will be effective upon publication next week.
On January 20, 2025, President Trump issued Executive Order 14148, which, among other things, announced the revocation of Executive Order 14055, issued on November 18, 2021, which provided for nondisplacement of qualified workers by successor contractors on federal service contracts.
Now, the Department of Labor is issuing a final rule rescinding the regulations on nondisplacement of qualified workers under service contracts, which were promulgated following the 2021 executive order, arguing that the order is the sole authority for the regulations and that, without the 2021 order, the regulations are without legal basis. Part 9 of Title 29 CFR, therefore, is now removed and reserved.
DOL invoked “good cause” as the basis for forgoing notice and comment. The rule is effective upon publication in the Federal Register, which is scheduled for December 22, 2025.
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