Trump Revokes Federal Contract Workers’ Hiring Priority



President Donald Trump recently signed an executive order repealing an Obama-era rule that gave federal contractors the right of first hire when a new employer took over a service contract with the government.

Trump revoked former President Barack Obama's rule "in order to promote economy and efficiency in federal government procurement," according to the Oct. 31 executive order.

We've rounded up articles and resources from SHRM Online and other trusted media outlets on the news.

Right of First Refusal

Trump's action revoked Executive Order (EO) 13495 and associated regulations, which applied to service contracts and subcontracts with the federal government. Obama's order gave certain workers who were going to lose their jobs at the end of a contract the right of first hire with a successor contractor if the work to be performed was similar and available at the same location. Successor contractors generally couldn't hire new employees until qualified workers under the prior contract were presented an opportunity.

(National Law Review)

Flexibility for Contractors

The new order will also end any investigations and compliance actions under the prior directive. Communications Workers of America President Chris Shelton opposed Trump's order, claiming that it will make it "easier for federal contractors to fire people and force them to uproot their lives even when their job isn't going anywhere." Business advocates, however, said that contractors generally hire from the existing workforce anyway and the new order gives them more flexibility when they have good reason not to hire their predecessor's employees. 

(Government Executive)

[SHRM members-only online discussion platform: SHRM Connect]

More Obama-Era Rules Rescinded

The Trump administration has rolled back other labor and employment rules from the Obama administration. For instance, in March 2017, two months after his inauguration, Trump signed a resolution to permanently block the so-called blacklisting regulations that would have required federal contractors to report labor violations and that prevented them from receiving contracts if they had serious infractions.

(SHRM Online)

Plans to Overhaul Federal Hiring

A recently proposed federal rule would make it easier for government agencies to demote or fire poor-performing employees. The proposed rule aligns with a series of executive orders Trump signed in 2018 as part of a plan to transform federal HR practices and processes. In addition to overhauling performance management, the Trump administration wants to make hiring easier and faster, help reskill federal workers whose jobs may be eliminated or changed by automation, and adopt updated technologies.

(SHRM Online)


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