OFCCP Issues Notices of Proposed Rulemaking Related to Affirmative Action

On July 1, 2025, the Office of Federal Contract Compliance Programs (“OFCCP”) issued three Notices of Proposed Rulemaking (“NPRM”). The notices propose plans to rescind regulations tied to Executive Order (“E.O.”) 11246, which was revoked pursuant to E.O. 14173 on January 21, 2025. These NPRMs also make non-substantive changes to the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (“VEVRAA”), but propose more significant changes related to Section 503 of the Rehabilitation Act of 1973 (“Section 503”). 

Proposed Rescission of All E.O. 11246 Regulations

Under the E.O. 11246 NPRM, all regulations tied to E.O. 11246 would be rescinded in full. Specifically, the Department of Labor (“DOL”) would rescind 41 C.F.R. §§ 60-1, 60-2, 60-3, 60-4, 60-20, 60-40, 60-50, and 60-999. Included in these statutory provisions are requirements for federal contractors and subcontractors to comply with the Uniform Guidelines on Employee Selection Procedures (“UGESP”), which also provided the authority for employers to invite applicants to self-identify race and gender, and to analyze applicant/hire activity for adverse impact. Another proposed cut would be to the provisions that require federal contractors and first-tier subcontractors to file EEO-1 reports (however, private employers—including federal contractors—with more than 100 employees would still have to file).

41 C.F.R. § 60-30 would have its E.O. 11246 components removed, but the rest of the administrative procedures related to VEVRAA and Section 503 enforcement would remain, for now. The DOL believes that formal rescission of E.O. 11246 regulations is necessary to avoid confusion because the prior executive order giving them legal authority is already rescinded.

Proposed Revisions to VEVRAA

In a separate NPRM related to VEVRAA, which requires affirmative action for protected veterans, the current regulations would largely remain in place, with only cross-references to E.O. 11246 proposed to be removed. For instance, 41 C.F.R. § 60-300.65(b)(1) states, “[a]ll hearings conducted under [VEVRAA and § 60-300] shall be governed by the Rules of Practice for Administrative Proceedings to Enforce Equal Opportunity Under Executive Order 11246 contained in 41 C.F.R. § 60-30…” The DOL plans to remove this reference and replace the actual administrative enforcement proceeding provisions from E.O. 11246 directly into 41 C.F.R. § 60-300.65.

This means that should the OFCCP issue a Final Rule aligning with its proposed changes, a federal contractor’s responsibilities under VEVRAA, including making outreach to veteran groups, posting open jobs with state workforce development offices, and preparing affirmative action plans, would remain largely unchanged.

Proposed Revisions to Section 503

The third NPRM issued on July 1st makes more significant changes to Section 503, which articulates the affirmative action obligations related to individuals with disabilities. As with the VEVRAA NPRM, the DOL proposes to remove references to E.O. 11246 and insert the former language regarding the administrative enforcement provisions directly into 41 C.F.R. § 60-741.65. 

More notably, the DOL proposes to rescind the regulations at 41 C.F.R. § 60-741.42, which require contractors to invite applicants and employees to self-identify their disability status. The OFCCP claims that inviting individuals to self-identify disability violates the Americans with Disabilities Act (“ADA”). The NPRM also proposes to remove the 7% utilization goal requirements of 41 C.F.R. § 60-741.45. In other words, other than the obligation to make outreach to individuals with disabilities, much of the other Section 503 affirmative action requirements—including data analyses—would not be required. 

What’s Next?

Comments to each of these NPRMs must be submitted by September 2, 2025, via https://www.regulations.gov, or via mail to Catherine L. Eschbach, Director, Office of Federal Contract Compliance Programs, 200 Constitution Avenue NW, Washington, DC 20210. Mailed comments must be received by the close of the comment period.

In the meantime, keep in mind that these are proposed changes and that nothing is final yet. Federal contractors should continue to prepare their Veteran and Disabled Affirmative Action Plans as usual until further notice. 

Kelli P. Lieurance
Samuel Heffron, Summer Associate