Attachment 14-Nondisplacement of Qualified Workers under Service Contracts.docx
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- Solicitation number
- 36C79125R0001
About this file
This document is an attachment outlining federal labor regulations related to service contracts, specifically highlighting three key executive orders and labor standards. The primary focus is Executive Order 14055, which requires federal contractors and subcontractors on successor contracts to offer jobs to qualified employees from the predecessor contract, ensuring workforce continuity and preventing service disruptions.
The document also covers two additional executive orders: Executive Order 13706, which mandates up to seven days of paid sick leave annually for federal contractors, and the Contract Work Hours and Safety Standards Act (CWHSSA), which provides guidance on labor standards, wage rates, and civil monetary penalties for contract violations. While the document is associated with a Department of Veterans Affairs material handling service contract (Solicitation Number: 36C79125R0001), the attachment itself is a comprehensive overview of labor protection regulations for federal service contracts rather than specific contract details.
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1. Final Rule: Nondisplacement of Qualified Workers under Service Contracts (Executive Order 14055)
NOTICE: On December 14, 2023, the Department of Labor (Department) published its final rule to implement Executive Order 14055, “Nondisplacement of Qualified Workers Under Service Contracts.” (see Federal Register :: Nondisplacement of Qualified Workers under Service Contracts) Executive Order 14055, issued by President Joseph R. Biden, Jr., requires federal contractors and subcontractors on a covered successor contract to offer jobs to qualified employees employed under the predecessor contract. Among many benefits, the Executive Order ensures skilled workers remain in their jobs, preventing disruptions in federal services. This final rule establishes the standards and procedures for implementing and enforcing the nondisplacement protections of Executive Order 14055.
2. Contract Work Hours and Safety Standards Act (CWHSSA)
· Links to WHD compliance resources
· WHD Compliance Assistance
· Links to other Departmental compliance resources
· Summary of Major DOL Laws
· Employment Law Guide
· Law
· 40 U.S.C. 3701 et seq. (PDF)
· Regulations
· 29 CFR 5
· Federal Register
· Proposed Rules
· Procedures for Predetermination of Wage Rates; Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction and to Certain Nonconstruction Contracts [04/09/1999] | (PDF)
· Procedures for Predetermination of Wage Rates (29 CFR Part 1); Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction and to Certain Nonconstruction Contracts (29 CFR Part 5)[08/02/1996] | (PDF)
· Final Rules
· Procedures for Predetermination of Wage Rates (29 CFR Part 1); Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction and to Certain Nonconstruction Contracts (29 CFR Part 5) [12/30/1996] | (PDF)
· Amendments to Federal Contract Labor Laws by the Federal Acquisition Streamlining Act of 1994; Final Rule [08/05/1996] | (PDF) empty
General Guidance
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Civil Money Penalty Inflation Adjustments Starting in 2016, agencies across the federal government must adjust their penalties for inflation each year. Below is a table that reflects the adjustments that have occurred for penalties under this statute. For more information on the penalty adjustments, go here.
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| Type of Violation |
| Statutory Citation |
| CFR Citation |
| Maximum Civil Monetary Penalty on or before 1/15/2024 |
| Maximum Civil Monetary Penalty on or after 1/16/2024 |
| Failure to pay laborers and mechanics at a rate not less than one and one-half times their basic rate of pay |
| 40 USC 3702(c) |
| 29 CFR 5.8(a) and 29 CFR 5.5(b)(2) |
| $31 |
| $32 |
3. Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors
On September 30, 2016, the U.S. Department of Labor published a final rule to implement Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors. Executive Order 13706 was signed on September 7, 2015, and requires parties that enter into covered contracts with the federal government to provide covered employees with up to seven days of paid sick leave annually, including paid leave allowing for family care. The final rule describes the categories of contracts and employees covered by the Executive Order; the rules and restrictions regarding the accrual and use of paid sick leave; the obligations of contracting agencies, the Department of Labor, and covered Federal contractors under the Order; and the remedies and enforcement procedures to implement the Order’s requirements.
General Guidance
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