DOL proposal to implement President Biden’s nondisplacement executive order for federal contractors is an important step toward providing job security for qualified workers, strong economies for local communities, and quality federal programs and services for everyone.
Nationwide—The National Employment Law Project (NELP) commends the Department of Labor for fulfilling the mandate set out by President Biden last November in his Executive Order on Nondisplacement of Qualified Workers under Service Contracts by issuing proposed rules to implement this policy. Each month, significant contracts may change hands, increasing the risk that important programs may suffer the disruptive loss of expertise and knowledge caused by mass turnover of staff under new contractors.
“When a federal contract changes hands, it is important that the transition be seamless for those who depend on critical publicly funded programs. The best way to maintain quality service is to ensure that the front-line workers who have accumulated knowledge and experience are kept on the job,” said Rebecca Dixon, NELP executive director. “When an experienced workforce is replaced all at once, workers, their families, and their communities all suffer, and the federal agency loses the benefit of their skills. Giving these workers the first right of refusal for these jobs is the best policy for everyone involved.”
As President Biden observed in his order, carrying over the workforce on a federal contract reduces disruption of services, protects important and often confidential data and information, and retains workers with experience in federal facilities and practices. Furthermore, research has shown that worker turnover can cost employers approximately one-fifth of a job’s salary to fill each vacancy, and training expenditures for service employees average nearly $1,300 for each new hire. The Nondisplacement of Qualified Workers under Service Contracts proposed rule ensures that agencies get the best value for publicly funded contracts with private companies.
A similar policy was in effect for years under President Obama, implementing his nondisplacement executive order—until it was rescinded by President Trump with no substantive explanation and no opportunity for public notice and comment.
DOL proposal to implement President Biden’s nondisplacement executive order for federal contractors is an important step toward providing job security for qualified workers, strong economies for local communities, and quality federal programs and services for everyone.
Nationwide—The National Employment Law Project (NELP) commends the Department of Labor for fulfilling the mandate set out by President Biden last November in his Executive Order on Nondisplacement of Qualified Workers under Service Contracts by issuing proposed rules to implement this policy. Each month, significant contracts may change hands, increasing the risk that important programs may suffer the disruptive loss of expertise and knowledge caused by mass turnover of staff under new contractors.
“When a federal contract changes hands, it is important that the transition be seamless for those who depend on critical publicly funded programs. The best way to maintain quality service is to ensure that the front-line workers who have accumulated knowledge and experience are kept on the job,” said Rebecca Dixon, NELP executive director. “When an experienced workforce is replaced all at once, workers, their families, and their communities all suffer, and the federal agency loses the benefit of their skills. Giving these workers the first right of refusal for these jobs is the best policy for everyone involved.”
As President Biden observed in his order, carrying over the workforce on a federal contract reduces disruption of services, protects important and often confidential data and information, and retains workers with experience in federal facilities and practices. Furthermore, research has shown that worker turnover can cost employers approximately one-fifth of a job’s salary to fill each vacancy, and training expenditures for service employees average nearly $1,300 for each new hire. The Nondisplacement of Qualified Workers under Service Contracts proposed rule ensures that agencies get the best value for publicly funded contracts with private companies.
A similar policy was in effect for years under President Obama, implementing his nondisplacement executive order—until it was rescinded by President Trump with no substantive explanation and no opportunity for public notice and comment.
