Labor Department Rescinds Successor Contractor Hiring Mandate

December 23, 2025

What's New

The Department of Labor (DOL) has formally rescinded its rule requiring successor service contractors to offer employment to workers from the outgoing contractor. This follows the President’s signing of E.O. 14148 on January 20, 2025, which reversed the previous Biden-era mandate and directed DOL to implement the change.

What It Means

Contractors will not see immediate operational changes, as the rule has been without effect since President Trump’s prior Executive Order. However, DOL’s formal rescission removes any lingering uncertainty. This policy has a long history of reversals, with Democratic presidents issuing nondisplacement mandates and Republican presidents rescinding them.

What You Should Do

Service contractors should review policies and practices to ensure they are updated to reflect the rescission. While DOL’s regulations are no longer in effect, transitions between contractors can still raise complex issues under the National Labor Relations Act and other authorities. CWC Members are encouraged to discuss practical implications and best practices during Conversation Corners.

RELATED CONTENT

Add

Data pager
Data pager
1 2 3 4 5 6 7 8 9 10 ... Page size: 5 10 20 50 Change page size 56 items in 12 pages

Show all 56

2025 Reconciliation Bill: Selected Employment-Related Provisions

Jul 29, 2025 – Employers should be aware that the “One Big Beautiful Bill” signed into law July 4 provides favorable tax treatment for specified employee benefits and forms of compensation, as this summary details.

CWC’s Guide to Political Discourse in the Workplace

Oct 24, 2024 – With the federal elections now upon us, CWC members may wish to review our guide on political discourse in the workplace.

Workers’ Drug Use Rose But Drinking Dropped In 2023, Survey Shows

Aug 20, 2024 – The latest annual national drug and alcohol use survey, covering calendar year 2023, shows that among U.S. workers illicit drug use was up while alcohol use was down, as compared to 2022.

FTC Finalizes Rule Banning Most Non-Compete Agreements; Legal Challenges Already Filed

May 1, 2024 – The FTC issued a final rule banning most non-compete agreements, effective 120 days after May 7. The rule applies to nearly all workers, with narrow exceptions for senior executives and business sales. Legal challenges are underway.

CWC Updates Guide To Implementing a Reduction In Force (RIF)

Nov 18, 2024 – In light of several recent headlines announcing significant layoffs, we thought this would be a good time to update our guide on compliant reductions-in-force.

Subscribe to CWC's Updates and Events

CLICK TO SIGN UP

New Tab

Resources

Our library of sources helping you understand and manage your workplace requirements and risks.

Data Center

Metrics and dashboards guiding you to make statistics and research-driven decisions.

Events

Learn and network at events focused on compliance policy, practice, and strategy.

Diversance Connect

Helping members find and connect with thousands of outreach and recruitment sources.