The Office of Federal Contract Compliance Programs (OFCCP) has announced an increase in the jurisdictional coverage thresholds for two key federal contracting laws: Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). These increases result from an inflationary adjustment and took effect on October 1, 2025.
It is standard practice for the agency to regularly re-evaluate the monetary thresholds, and federal contractors should be aware that these updates may affect their organization’s compliance obligations.
Key Changes to Coverage Thresholds
| Requirement | Before Oct. 1, 2025 | Effective Oct. 1, 2025 | Impact on Compliance |
| Section 503 Nondiscrimination/Affirmative Action for Individuals with Disabilities | $15,000 | $20,000 | A federal contract or subcontract must now be $20,000 or more to trigger basic Section 503 coverage. |
| VEVRAA Nondiscrimination/Affirmative Action for Protected Veterans | $150,000 | $200,000 | A federal contract or subcontract must now be $200,000 or more to trigger basic VEVRAA coverage. |
Please note that the thresholds for the mandatory written Affirmative Action Program (AAP) requirements under Section 503 have not changed, remaining at 50 or more employees and a single contract of $50,000 or more. The VEVRAA AAP employee threshold also remains at 50 or more employees, but the contract threshold is adjusted to $200,000. An employer holding a contract between $50,000 and $199,999 could consequently be required to maintain an AAP for individuals with disabilities but not protected veterans.
For more information, visit Jurisdiction Thresholds and Inflationary Adjustments | U.S. Department of Labor.
If you are a current HR Works client and have any questions about how these updated contract thresholds affect your current or future compliance, please reach out directly to your HR Works AA/EEO Consultant. If you are not a current client and would like to learn more about how HR Works can help, contact us today.
