Seyfarth Synopsis: The Office of Federal Contract Compliance Programs (OFCCP) continues to release policy updates despite its uncertain future. Today the U.S. Department of Labor (DOL) lifted its temporary suspension on enforcement activities under Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA). This announcement comes on the heels of OFCCP’s invitation for contractors to voluntarily submit information regarding their compliance with Executive Order 14173 and the proposal to revise Section 503 and VEVRAA regulations. Today’s announcement confirms that federal contractors must continue to comply with Section 503 and VEVRAA. OFCCP will also resume processing any complaints filed under Section 503 or VEVRAA but will administratively close all pending compliance reviews.
Overview
Today, the DOL issued Secretary’s Order 08-2025, formally lifting the temporary suspension on OFCCP’s enforcement of Section 503 and VEVRAA. This move follows the issuance of EO 14173 on January 21, 2025, which revoked EO 11246 and directed OFCCP to cease enforcement of affirmative action obligations under that Order.
In response to EO 14173, then-Acting DOL Secretary Vincent Micone issued Secretary’s Order 03-2025, which not only halted enforcement under EO 11246 but also placed OFCCP’s activities under Section 503 and VEVRAA in abeyance. According to OFCCP, this pause was necessary to untangle the agency’s historically integrated enforcement structure and ensure that no unauthorized activity continued under the now-revoked EO 11246 framework.
Key Developments
With the issuance of Order 08-2025 by DOL Secretary Lori Chavez-DeRemer, OFCCP is now authorized to resume enforcement activity under Section 503 and VEVRAA.
Resumption of Complaint Investigations: OFCCP will immediately resume processing Section 503 and VEVRAA complaints that were put on hold. Additionally, any new complaints filed during the suspension period will now be processed as usual. Contractors with pending complaint investigations should expect to receive updates from the agency.
Administrative Closure of Pending Compliance Reviews: Due to the prior integration of EO 11246 with Section 503 and VEVRAA compliance reviews, OFCCP will administratively close all pending compliance reviews that were initiated under the November 2024 scheduling list. Contractors previously received closure notices for the EO 11246 component of these reviews after the recission of these obligations, and will now receive formal closure notices for the Section 503 and VEVRAA components.
AAP Certification Portal Remains Closed: While OFCCP updates its processes and systems under Section 503 and VEVRAA, contractors will not be required to certify their AAP compliance at this time. Despite the lack of certification requirements, today’s announcement confirmed that contractors must continue to comply with Section 503 and VEVRAA and their current implementing regulations.
VAHBP Enforcement Moratorium Extended: The Veterans Affairs Health Benefits Program (VAHBP) enforcement moratorium has been extended through May 7, 2027. While VAHBP providers remain exempt from affirmative action enforcement under Section 503 and VEVRAA, they are still subject to nondiscrimination obligations and may be investigated in response to discrimination complaints.
Practical Takeaways for Federal Contractors
In light of Secretary’s Order 08-2025 and OFCCP’s renewed enforcement activities under Section 503 and VEVRAA, federal contractors should take proactive steps to ensure continued compliance. The following actions are recommended:
- Review and confirm Section 503 and VEVRAA compliance programs to ensure they are current.
- Continue to engage in outreach effortls to ensure equal employment opportunities for Protected Veterans and Individuals with Disabilities.
- Monitor OFCCP communications for updates on AAP certification and compliance review scheduling.
- Prepare for OFCCP to resume complaint investigations and enforcement activity.
- If your organization was on the November 2024 scheduling list, be on the lookout for a formal administrative closure notice.
- VAHBP providers should continue to comply with nondiscrimination obligations and be aware that complaint investigations may still proceed.
