On July 2, 2025, the Office of Federal Contract Compliance Programs (OFCCP) notified federal contractors of Labor Secretary Order 08-2025, which directs the OFCCP to close all scheduled affirmative action compliance reviews and to resume processing individual discrimination complaints from protected veterans and individuals with disabilities. On January 24, 2025, as we previously reported, the Labor Secretary had issued an order stating that all OFCCP enforcement under Section 503 of the Rehabilitation Act (related to individuals with disabilities) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA, related to protected veterans) was “being held in abeyance pending further guidance.” The OFCCP’s latest notice revives only individual complaints but also reminds federal contractors that all of the Section 503 and VEVRAA regulations are still in effect.
Those regulations will likely be changing, however. On July 1, 2025, the OFCCP proposed to remove all references to Executive Order 11246 (affirmative action programs related to race/ethnicity and sex) from its regulations, since it was rescinded by President Trump on January 21, 2025 (Executive Order 14173). Interestingly, the agency’s proposed changes to the VEVRAA regulations made no substantive changes to federal contractors’ obligations with respect to protected veterans, but the proposed changes to the Section 503 regulations would eliminate the requirement to invite applicants and employees to self-identify their disability status. Comments on the proposals are due on September 2, 2025.
Tips: We are continuing to monitor developments regarding the OFCCP. Under the current Department of Labor budget proposal for FY 2026, the OFCCP would cease to exist as of October 1, 2025. The proposal would transfer the OFCCP’s enforcement authority under Section 503 to the Equal Employment Opportunity Commission (EEOC) and transfer enforcement authority under VEVRAA to the Veterans Employment and Training Service (VETS), an agency within the Department of Labor. If those transfers of authority are approved in the federal budget (which is still in the works), the next question will be what enforcement from the EEOC and VETS would look like for federal contractors. We won’t know the answer until the budget is approved and the relevant agencies announce their enforcement priorities and possibly draft their own regulations. (It should be noted that the FY 2026 budget is separate from the recently enacted One Big Beautiful Bill Act.)
Meanwhile, on June 27, 2025, the OFCCP invited federal contractors “to provide information about their efforts to wind down compliance with the EO 11246 regulatory scheme and ensure full compliance with the Nation’s non-discrimination laws.” The OFCCP says that federal contractors can upload a voluntary narrative report through its Contractor Portal, explaining what actions they have taken. Vigilant recommends against uploading any such information to the OFCCP. There is no benefit to doing so and the information could potentially be used against federal contractors.
Vigilant will keep members and affirmative action clients apprised of further developments. Questions about your current obligations? Contact your Vigilant Law Group employment attorney or Vigilant affirmative action representative and see our Legal Guides, Affirmative Action Requirements for Supply and Service Contractors and Affirmative Action Requirements for Construction Contractors.
