H. Juanita Beecher

On Friday, June 27, 2025, OFCCP Director Catherine Eschbach issued a letter inviting federal contractors to voluntarily submit information to OFCCP detailing contractors’ efforts to “wind down compliance with the EO 11246 regulatory scheme and ensure full compliance with the Nation’s non-discrimination laws.” Join David Fortney, Liz Bradley and Nita Beecher as they analyze Director Eschbach’s letter and provide practical insights to assist federal contractors in deciding whether or how to respond to this request.

The U.S. Department of Labor has officially lifted the abeyance on OFCCP’s enforcement of Section 503 of the Rehabilitation Act (503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) via Secretary's Order 08-2025 , issued by Secretary Lori Chavez-DeRemer. This development follows the January 2025 revocation of Executive Order (EO) 11246 through the Trump Administration's EO 14173, which fundamentally altered OFCCP’s enforcement priorities and led to the temporary pause of Section 503 and VEVRAA activities via Secretary’s Order 03-2025. Key Takeaways for Employers Immediate Resumption of Investigations: OFCCP will begin processing all Section 503 and VEVRAA complaints held during the abeyance. New complaints filed during the suspension period will also move forward. Administrative Closure of Compliance Reviews: Due to historical entwinement of EO 11246 review formats with Section 503/VEVRAA, all pending compliance reviews are being administratively closed. Formal notifications will be issued to affected contractors. AAP Certification Still Closed: Despite the resumed enforcement, the affirmative action program (AAP) certification portal remains closed . Employers are still obligated to maintain compliance with Section 503 and VEVRAA regulations. VAHBP Enforcement Moratorium Extended: Providers under the Veterans Affairs Health Benefits Program (VAHBP) remain exempt from affirmative action enforcement under Section 503 and VEVRAA through May 7, 2027 . They are still subject to nondiscrimination complaint investigations. What Employers Should Do Now Watch for formal notice of compliance review closures and updates from OFCCP. Monitor communications from OFCCP and the Department of Labor for further guidance. Reach out to FortneyScott for assistance to: Review existing Section 503 and VEVRAA policies and documentation. Ensure ongoing compliance with regulatory obligations, such as preparation of 503 and VEVRAA AAPs.

The DOL is proposing to rescind the regulations implementing EO 11246 in addition to revising its regulations for Section 503 and VEVRAA in response to President Trump’s EO 14173 and EO 14219 . Proposed Changes to Section 503 Regulations The Trump Administration has proposed significant changes to the Section 503 regulations applicable to federal contractors. Specifically, the proposal: Eliminates 41 C.F.R. § 60-741.42, which requires contractors to invite applicants and employees to self-identify disability status. The Administration asserts that such data collection is inconsistent with the ADA, notwithstanding EEOC guidance affirming its permissibility. Removes the requirement under 41 C.F.R. § 60-741.44(k) for contractors to document data collection analysis , while retaining the annual assessment obligation for evaluating outreach and recruitment efforts under 41 C.F.R. § 60-741.44(f)(3). Rescinds the 7% utilization goal in 41 C.F.R. § 60-741.45 , citing its reliance on revoked EO 11246 job group structures. The proposal makes clear it will not impose a substitute analysis, referencing the directive in EO 14219 to reduce regulatory burdens. Removes cross-references and provisions tied to EO 11246 , while adding provisions for administrative enforcement proceedings under 41 C.F.R. § 60-741.65. These changes reflect a broader deregulatory approach and raise significant compliance and policy considerations for federal contractors. Proposed Changes to VEVRAA The proposed changes to VEVRAA are simply to remove cross references and language citing EO 11246 authority and to add administrative enforcement proceeding provisions to 41 C.F.R. § 60-300. VEVRAA proposal retains both the self-identification requirements for protected veterans and the hiring benchmark (at this point, OFCCP has not updated its hiring benchmark for 2025). Conclusion Despite the impending elimination of OFCCP—set for October 1, 2025—the comment periods for all three regulatory developments end September 2, 2025. OMB will then have an additional 30-day comment period. If you are interested in filing comments to these proposed changes, please let FortneyScott know by reaching out to your FortneyScott attorney or sending us an email at info@fortneyscott.com . In the meantime, FortneyScott will continue to monitor these and other developments related to EO 14173.

The OFCCP has made available for public review proposed changes to the regulations under VEVRAA and Section 503 . It has also released a proposal to eliminate the regulations tied to Executive Order 11246. These proposed rules are expected to be officially published in the Federal Register tomorrow, initiating a 60-day period for public comment. The move to rescind the Executive Order 11246 regulations follows the recent revocation of that order through Executive Order 14173. Changes suggested for the VEVRAA regulations appear to be minimal and would not significantly alter compliance obligations for contractors. In contrast, the proposed updates to the Section 503 rules would eliminate the 7 percent utilization goal by job group and the requirement that applicants/employees self-identify as disabled while retaining the annual outreach and recruitment assessment. Final rules are not anticipated for several months, and in the meantime, the current VEVRAA and Section 503 regulations remain in effect. The proposed rules will be published in the Federal Register tomorrow : https://www.federalregister.gov/public-inspection/current#regular-filing-federal-contract-compliance-programs-office