Executive Order 12954: Ensuring the Economical and Efficient Administration and Completion of Federal Government Contracts
President: Bill Clinton
Sought to bar federal contracts with employers that permanently replaced lawful strikers; the courts held the procurement policy pre-empted by federal labor law.
Status: Revoked. Is Executive Order 12954 still in effect? No. Executive Order 12954 was revoked. See Executive Order 13208: Amendment to Executive Order 13202, Preservation of Open Competition and Government Neutrality Towards Government Contractors' Labor Relations on Federal and Federally Funded Construction Projects, Federal Register record.
What does Executive Order 12954 do?
EO 12954 directed agencies not to contract with employers that permanently replaced lawfully striking workers. It authorized the Labor Secretary to investigate complaints and recommend contract termination or debarment above the simplified acquisition threshold. In Chamber of Commerce v. Reich, the D.C. Circuit held the order regulatory in effect and pre-empted by the National Labor Relations Act. Labor removed its implementing rule, and EO 13208 formally revoked the order in 2001.
Before and after
Before the order
Federal labor law allowed employers in some economic strikes to hire permanent replacements.
After the order
The procurement restriction was issued, judicially invalidated and then formally revoked.
Who had to do what
| Agency / office | Action | Timing / position |
|---|---|---|
| Labor Secretary | Investigate replacement of lawful strikers | Until invalidation |
| Contracting agencies | Terminate or avoid covered contracts when authorized | Until invalidation |
What happened next
EO 12954 was signed.
Labor issued its final rule.
The D.C. Circuit voided the order.
Labor removed its rule.
EO 13208 revoked the order.
Court status
See the court documents in Sources by type.
Legal and source detail
How it works legally
The D.C. Circuit held that the order intruded on conduct Congress intended to leave unregulated under the National Labor Relations Act. The ruling ended implementation before formal revocation.
Sources by type
If a source is unavailable, first check the cited publisher or another official repository. The cited publisher remains the authority.
Primary and official sources
Orders, laws, court records and official implementation material.
- GovInfo — EO 12954 (opens in a new tab) Order text
- GovInfo — EO 13208 (opens in a new tab) Order text
How we checked this
Last checked against the sources above on September 14, 2026. How we research →