In conjunction with the recent proposed rule changes to the Section 503 of the Rehabilitation Act of 1973 (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) regulations, the Department of Labor (DOL) announced OFCCP has the authority to resume its enforcement activities related to veterans and individuals with disabilities.

On July 2, 2025, Secretary of Labor Lori Chavez-DeRemer issued Secretary’s Order 08-2025, officially lifting the prior temporary pause on enforcement put in place in January 2025 by the then Acting Secretary of Labor. Prompted almost immediately by EO 14173, the prior order, Order 03-2025, directed OFCCP to halt all activities under EO 11246. Order 03-2025 also placed OFCCP’s activities related to Section 503 and VEVRAA in abeyance. The DOL asserted this temporary pause was necessary to unwind EO 11246 programs and separate them from OFCCP’s Section 503 and VEVRAA compliance structure, ensuring that the “OFCCP did not undertake any activity for which it was not authorized.” 

With the abeyance lifted, DOL announced OFCCP can resume work on VEVRRA and Section 503 complaints immediately.

However, with respect to compliance reviews, the notice explained

OFCCP will be exercising its discretion to administratively close all pending compliance reviews and will take no further action related to the scheduling list released in November 2024.  Impacted contractors will promptly receive formal notification of the administrative closure of the pending compliance review. 

Additionally, the notices confirm the Section 503 and VEVRAA affirmative action program (AAP) certification process remains closed at this time and reiterates the Veterans Affairs Health Benefits Program (VAHBP) enforcement moratorium has been extended through May 7, 2027. Despite this, Secretary Chavez-DeRemer’s order reminds contractors that they must continue to meet their obligations under Section 503 and VEVRAA regulations.

Importantly, Secretary’s Order 08-2025 does not rescind the prior DOL order in its entirety. Secretary’s Order 03-2025 provisions related to EO 11246 remain in effect. As outlined in the earlier order, OFCCP must “cease and desist” the Agency’s investigative and enforcement activities under the EO 11246.

If you have questions about OFCCP’s resumed activities and how they could affect your organization, contact a Jackson Lewis attorney to discuss your specific situation and compliance obligations.

OFCCP has published proposed modifications to the VEVRAA and Section 503 regulations which govern federal contractor affirmative action obligations for veterans and individuals with disabilities.

The proposed changes to the veterans’ regulations are largely procedural – removing references to Executive Order 11246 and its implementing regulations – resulting in the veterans’ regulations being wholly self-contained and not reliant on incorporation of the inoperable 11246 regulations. As a note, the Agency has also simultaneously proposed to formally rescind the Executive Order 11246 regulations in an effort to address any confusion as to their status following President Trump’s revocation of Executive Order 11246 in January 2025.

Conversely, while including the same Executive Order 11246 modifications, OFCCP proposes additional modifications to the Section 503 regulations which are more material – proposing to eliminate self-identification data collection and utilization analyses for individuals with disabilities. The proposal does not suggest removing contractors’ obligations to assess the effectiveness of their outreach efforts, however.

To be clear, the obligation to prepare affirmative action plans under both VEVRAA and Section 503 remain intact under OFCCP’s proposals.

The proposed rules are now open for a 60-day public comment period.

We continue to digest the changes and will be back with more insights as they develop.

In a letter dated June 27, 2025, sent to federal contractors and posted on its website, the Office of Federal Contract Compliance Programs (OFCCP) announced it is providing federal contractors the option to voluntarily submit information about actions they have taken in response to Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”

OFCCP Director Catherine Eschbach asserts in the letter that Executive Order 14173 “reaffirmed the central importance of federal non-discrimination laws” by “eliminating reliance upon unlawful, unfair, and unsafe discriminatory practices, including those labeled as Diversity, Equity, and Inclusion (DEI). . . .” EO 14173 rescinded EO 11246, a Johnson-era directive that required federal contractors to implement affirmative action programs to ensure equal employment opportunity on the basis of race and sex.

Director Eschbach notes the deadline to “wind down compliance” with EO 11246 affirmative action requirements was April 21, 2025. Over the next 90 days, the OFCCP is offering federal contractors the option to voluntarily disclose information about their efforts to phase out compliance with previous regulations. Per the notice,

[t]his opportunity allows the federal contractor community to share information, if they choose to, about how they have implemented EO 14173.  

Federal contractors can submit a narrative, if they choose to, through OFCCP’s Contractor Portal. While the “content, format, and decision to provide any information is completely up to the contractor,” and OFCCP emphasizes disclosure is not mandatory, and goes on to provide guidance and considerations for those electing to supply their information.

At the time of publishing this blog post, it is not known how OFCCP intends to use federal contractors’ disclosed information which makes the decision whether to provide the Agency with any information difficult. Today’s letter also comes on the heels of the Department of Labor’s proposed elimination of OFCCP next fiscal year.

We continue to monitor developments in this area and will update this post as we learn more.

For assistance in understanding the OFCCP’s letter and its implications, contact a Jackson Lewis attorney to discuss.

In a move the Agency reported is designed to maintain healthcare access for active and retired service members and their families, the Office of Federal Contract Compliance Programs (OFCCP) has announced a two-year extension to the enforcement moratorium for Veterans Affairs Health Benefits Program (VAHBP) providers. This extension, effective June 11, 2025, will now run through May 7, 2027.

The extended moratorium continues to suspend the enforcement of VAHBP providers’ requirement to take affirmative steps to ensure equal opportunity without regard to disability or protected veteran status, obligations typically required of federal contractors and subcontractors. Additionally, VAHBP providers will not be subject to neutral scheduling for compliance evaluations during this period – though all evaluations are currently being held in abeyance.

Presently, the OFCCP retains authority to investigate discrimination complaints filed under Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). However, given the current administration’s focus on deregulation and the recent proposed budget that would effectively eliminate the OFCCP, this moratorium extension likely reflects the need to address the previous May 2025 expiration date, rather than an indication that the agency is ramping up its activities.

This extension represents the latest in a series of actions dating back to 2014, when the OFCCP first limited its enforcement activities for TRICARE subcontractors in an effort to balance regulatory requirements and veterans’ access to healthcare, allowing for more time to consider stakeholder feedback. The moratorium was later expanded to include VAHBP providers. Effective August 31 2020, OFCCP’s final rule established that it does not have authority over TRICARE providers. The current moratorium extension provides additional time for the OFCCP to develop sub-regulatory guidance specifically addressing VAHBP providers.

While the extension offers some regulatory relief, VAHBP providers must remain aware that the moratorium does not exempt them from nondiscrimination obligations.

We will continue to monitor OFCCP developments and administrative activities for updates. If you have questions about this extension and how it may affect your organization, please contact a Jackson Lewis attorney for guidance.

According to the U.S. Department of Labor’s (DOL) fiscal year 2026 proposed budget, the Department is set to fully eliminate the Office of Federal Contract Compliance Programs (OFCCP) next fiscal year, which begins October 1, 2025. The budget proposal aligns with the current administration’s broader efforts to shut down the OFCCP and its authority to audit and investigate federal contractors for potential race and sex discrimination. Earlier this year, President Trump issued Executive Order (EO) 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which rescinded Executive Order 11246. Revoking this President Johnson-era order stripped most of the OFCCP’s authority, except where otherwise outlined in statute.

The budget proposal, released on May 30, 2025, states Executive Order 14173

permanently removes the primary basis for OFCCP’s enforcement authority and program work.

The budget proposes transferring OFCCP’s responsibilities under Section 503 of the Rehabilitation Act to the Equal Employment Opportunity Commission (EEOC). Additionally, the DOL’s Veterans’ Employment and Training Service would take over enforcement duties under the Vietnam Era Veterans’ Readjustment Assistance Acts (VEVRAA).

Congress has yet to approve the DOL’s proposed budget, and statutory amendments may be necessary to transfer authority from the OFCCP to other executive agencies.

We will continue to monitor the situation and provide updates as we learn of them.

As projected, the 2024 EEO-1 Data Collection is officially open. The deadline to file the 2024 EEO-1 Component 1 report is Tuesday, June 24, 2025. EEOC notes in its announcement that

[a]s part of the EEOC’s efforts to identify continued cost savings for the American public, there will be a shorter collection period during which filers may submit their 2024 reports. The collection period will not extend beyond the Tuesday, June 24, 2025 “Published Due Date” deadline. 

The announcement also notes “all communications sent to filers will be electronic. No notifications about the 2024 collection will be sent to filers via postal mail.” In past years, EEOC has sent paper notices of non-compliance following closure of the collection period.

In addition to the announcement, EEOC also posted a message from Acting EEOC Chair Andrea Lucas. Acting Chair Lucas reminds filers of their “obligations under Title VII not to take any employment actions based on, or motivated in whole or in part by, an employee’s race, sex, or other protected characteristics.” She reiterates

[t]here is no “diversity” exception to Title VII’s requirements.

Her message also relays the recent Executive Order directive to agencies to deprioritize “disparate impact” enforcement noting “[t]he EEOC is an executive branch agency, not an independent agency. We will fully and robustly comply with this and all Executive Orders. Under my leadership, the EEOC will prioritize remedying intentional discrimination claims.”

In closing, Acting Director Lucas again reminds filers they “must not use the information collected and reported in your organization’s EEO-1 Component 1 report to justify treating employees differently based on their race, sex, or other protected characteristic” and notes the “EEOC remains committed to helping employers comply with their obligations under federal employment antidiscrimination laws.”

We will continue to monitor this story and bring you any additional updates. If you have questions regarding your EEO-1 filing or other compliance needs, please contact the Jackson Lewis attorney with whom you work.

As an update to our previous post, the EEOC’s request for a non-substantive change to remove the option for employers to voluntarily report non-binary data on the EEO-1 data collection has been approved without change.

We are now waiting to see when EEOC will open the 2024 EEO data collection portal. In the proposed instructions filed with the requested change, EEOC indicated May 20, 2025 as the anticipated opening.

We are continuing to monitor the situation and will report back with any updates.

On April 15, 2025, in response to Executive Order 14168, Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government, the EEOC filed an Information Collection Request (ICR) with OMB requesting what it classified as a non-substantive change to remove the option for employers to voluntarily report non-binary data for those in their workforce. 

In past years, the EEO-1 reporting instructions allowed respondents to provide non-binary data in a narrative form in the comment box of the report.  EEOC believes this voluntary option must be removed to comply with Executive Order 14168.

The data collection for 2024 has not yet opened but the proposed instruction booklet filed with the ICR indicates reporting would open May 20, 2025, with a reporting deadline of June 22, 2025.  The ICR is not seeking any changes beyond the current data collection approval period which runs through 2026.

We will continue to monitor and report additional updates as more information becomes available.

Ten former Department of Labor Officials, including former EEOC Commissioner and past OFCCP Director Jenny Yang, sent an open letter to federal contractors responding to President Trump’s issuance of Executive Order 14173 and newly appointed OFCCP Director Catherine Eschbach’s recent statements about OFCCP.

The letter is aimed to

“help federal contractors and other employers navigate this complex environment, providing clarity about their options and obligations under the law.”

The 14-page letter details how the current administration’s actions are in contravention of established law, explains compliance with Executive Order 11246 did not require the unlawful use of preferences or quotas, and describes how continued proactive practices, including self-assessments and data analysis to remove discriminatory barriers remain lawful and are essential to prevent discrimination.

The letter concludes reiterating that “America’s enduring promise is that talent and effort – not background or origin – should determine one’s path” and encourages the federal contracting community to “stand firm in your commitments to lawful diversity, equity, inclusion, and accessibility practices that promote civil rights compliance, true merit, and a strong economy.”

The Wall Street Journal is reporting newly appointed OFCCP Director Catherine Eschbach announced to OFCCP staff that the Agency will review federal contractor affirmative action plans previously submitted to the Agency for evidence of discriminatory employment practices. The report quotes Director Eschbach’s email to staffers in which she states

…most of what OFCCP had been doing was out of step, if not flat out contradictory, to our country’s laws, and all reform options are on the table.”

It is unclear at this time what form these reviews will take or which contractors may be under review.

Importantly, the plans under review were submitted to OFCCP under the prior Executive Order 11246 and before the current administration’s recent issuance of Executive Order 14173, revoking EO11246.

This is a developing story so stay turned for further details.