On Dec. 22, 2025, the U.S. Department of Labor rescinded an ABC-opposed rule on Nondisplacement of Qualified Workers Under Service Contracts, effective immediately. This rescission was issued in accordance with President Donald Trump’s Executive Order 14148, Initial Rescissions of Harmful Executive Orders and Actions.

The rule, issued in December 2023, required contractors and subcontractors that work on covered federal service contracts, which include most contracts valued at or above $250,000 covered by the Service Contract Act, to offer service employees employed under the predecessor contract a right of first refusal of employment on the successor contract in good faith. 

With the rule no longer in effect, previously covered contractors are no longer required to offer positions to incumbent workers before hiring new employees.

On Aug. 15, 2022, ABC submitted comments opposing the proposed regulation, asserting that it conflicted with the plain language of the SCA and would create inefficiencies in the procurement process by restricting the ability of contractors to freely hire their workforce.