Seyfarth Synopsis: On July 1, 2025, OFCCP published in the Federal Register a set of proposals to rescind the regulations implementing Executive Order 11246 and to modify the regulations implementing Section 503 of the Rehabilitation Act and VEVRAA. According to the agency, these changes are intended to align its regulations with recent court decisions and executive orders. Most significantly, the proposed changes to the Section 503 regulations would remove the requirement for federal contractors to solicit disability status from applicants and employees and eliminate the seven percent disability utilization goal.
The Office of Federal Contract Compliance Programs (OFCCP) published three proposed rules that would rescind or modify the regulations implementing Executive Order 11246, Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).
Proposed Rescission of Regulations Implementing Executive Order 11246
The first OFCCP proposed rule would rescind the regulations implementing Executive Order 11246 to ensure alignment with Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The affected regulations include:
- 41 C.F.R. § 60-1 Obligations of Contractors and Subcontractors
- 41 C.F.R. § 60-2 Affirmative Action Programs
- 41 C.F.R. § 60-3 Uniform Guidelines on Employee Selection Procedures (1978)
- 41 C.F.R. § 60-4 Construction Contractors - Affirmative Action Requirements
- 41 C.F.R. § 60-20 Discrimination on the Basis of Sex
- 41 C.F.R. § 60-40 Examination and Copying of OFCCP Documents
- 41 C.F.R. § 60-50 Guidelines on Discrimination Because of Religion or National Origin
According to OFCCP, rescinding these regulations clarify federal contractors’ affirmative action obligations and bring the regulatory framework into closer alignment with the goals of Executive Order 14173 and the Students for Fair Admissions1 case decided in 2023, which prohibited race and gender-based admission decisions in higher education. The agency contends that the goal-setting requirements of Executive Order 11246 regulations “incentivize and induce adopting practices that can induce or incentivize disparate treatment in employment decisions based on race or sex.” Citing Ames v. Ohio Department of Youth,2 OFCCP emphasizes that “Supreme Court caselaw has long been ‘clear that the standard for proving disparate treatment under Title VII does not vary based on whether or not the plaintiff is a member of a majority group.’”3
OFCCP’s interpretation is consistent with the longstanding understanding within the federal contractor community that affirmative action obligations have never authorized discrimination in favor of any group. This principle is reflected in numerous OFCCP conciliation agreements in instances where the agency resolved alleged discrimination against members of all demographic groups, including white applicants/employees and men. For federal contractors, these outcomes underscored that Title VII and Executive Order 11246 have always been consistent in prohibiting disparate treatment regardless of the protected characteristic at issue, and that compliance efforts were rooted in nondiscrimination and equal opportunity for all.
Regarding the proposed rescission of the Uniform Guidelines on Employee Selection Procedures (UGESP) codified 41 C.F.R. § 60-3, OFCCP clarifies that the proposed action does not impact other agencies’ interpretation and application of UGESP. UGESP is also applied by EEOC in the enforcement of Title VII, as well as the Department of Justice “in exercising its responsibilities under Federal law.”4
Proposed Modifications of Regulations Implementing Section 503
OFCCP’s proposed modifications to the regulations implementing Section 503 recommend two key changes to federal contractors' affirmative action compliance obligations. First, contractors would no longer be required to solicit disability information from their applicants and employees. According to OFCCP, eliminating the self-identification requirement better aligns with the Americans with Disabilities Act, which prohibits employers from making any pre-employment inquiries into an applicant’s disability status or any inquiries into the disability status of employees unless they are job-related and consistent with business necessity.5
Notably, when the contractor community raised similar objections at the time OFCCP issued the regulations requiring that contractors collect such data, OFCCP took a different position and produced an August 8, 2013 letter from the EEOC confirming that such actions were not impermissible because they were undertaken for purposes of engaging in affirmative action for individuals with disabilities. In the proposed regulatory modifications, OFCCP states that its previous reliance on the EEOC letter “does not reflect a binding view of the EEOC on the permissibility of inviting employment candidates to self-identify as individuals with disabilities under the ADA” because the letter “merely reflected the opinion of one legal officer at the EEOC over ten years ago” and was not issued by any EEOC Commissioner or voted on by the EEOC Commission.
Second, the proposed changes would remove the seven percent utilization goal for the employment of qualified individuals with disabilities. OFCCP finds that the utilization goal may, in practice, induce contractors to use quotas to meet the goal, which are prohibited under Section 503. Furthermore, the requirement to prepare a utilization analysis to evaluate progress against the seven percent goal relies on the job group structure created under the now rescinded Executive Order 11246.
Through its proposal, OFCCP “welcomes comments on these proposed changes,” particularly comments on whether any form of disability data collection from applicants or employees could be maintained consistent with ADA requirements. Despite these proposed changes, the regulations requiring disability outreach and recruitment remain in place.
Proposed Modification of Regulations Implementing VEVRAA
OFCCP’s proposed modifications to VEVRAA are minimal. They would only remove references to Executive Order 11246 and its implementing regulations at 41 C.F.R. § 60-30. There are no proposed revisions to the requirements to set an annual hiring benchmark for protected veterans, engage in veteran outreach and recruitment efforts and evaluate the effectiveness of those efforts.
The deadline to submit comments in response to the proposed regulatory updates is September 2, 2025.
1 Students for Fair Admissions v. Pres. & Fellows of Harv. Coll., 600 U.S. 181 (2023).
2 Ames v. Ohio Department of Youth, 605 U. S. ___ (2025).
3 Id. at *5.
4 See 29 CFR § 1607.2(A).
5 42 U.S.C. 12112(d)(2)(A)&(4)(A).
