Affirmative action employers are starting to see action from OFCCP as the agency faces probable closure three months from now. The agency released three proposed rules in the July 1, 2025, Federal Register, all precipitated by President Trump’s Executive Order 14173 “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”
- Recission of Executive Order 11246 Implementing Regulations. Consistent with EO 14173’s rescission of EO 11246, OFCCP seeks to rescind the regulations promulgated by EO 11246 and thereby “avoid any potential for misunderstanding regarding the status of the regulations by covered contractors and the general public.” These regulations primarily define the affirmative action requirements pertaining to women and minorities, impacting both supply and service contractors and construction contractors.
- Modifications to the Regulations Implementing the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as Amended. Changes to these regulations are intended to remove reference to EO 11246 and reliance on the EO 11246 regulations that are expected to be rescinded under the first proposed rule. OFCCP is proposing to remove irrelevant regulatory citations and insert a full section on enforcement proceedings, which is currently only addressed by the EO 11246 regulations. The proposed changes would not affect contractors’ obligations to continue affirmative action programs for protected veterans.
- Modifications to the Regulations Implementing Section 503 of the Rehabilitation Act of 1973, as Amended. Proposed changes to this set of regulations mirror the VEVRAA proposed changes: removing references to EO 11246 and inserting enforcement proceedings. Notably, the proposed rule would remove the requirements for the voluntary self-identification form and data collection for individuals with disabilities, along with the disability utilization goal. The agency cites inconsistency with the ADA as the primary reason for the change. Despite the resulting lack of data on applicant or employee disability status, OFCCP’s proposal retains the requirement that contractors evaluate the effectiveness of their outreach and recruitment efforts on identifying and recruiting qualified individuals with disabilities.
As proposed rules, a public comment and review period must occur before final rules are released. Anyone wishing to submit comments has until September 2, 2025, to do so at https://www.regulations.gov; the deadline is the same for all three proposed rules. If OFCCP ceases operations on September 30th, as expected, contractors can expect to see final rules published in late September.
