Nondisplacement of Qualified Workers Under Service Contracts; Rescission of Regulations

Key Points

• This rule removes a Labor Department rule that would have helped current workers keep their jobs when a federal service contract changes hands.
• It follows Trump’s 2025 order that canceled the earlier policy, so the Labor Department says the old rule no longer has legal backing.
• For workers, it means a new company taking over a federal contract does not have to offer jobs to the prior company’s qualified workers first.
• For contractors, it cuts paperwork like worker lists, notices, and recordkeeping; the Labor Department estimates about $39 million in net savings in year 1.