According to Washington Post and Bloomberg press reports, on February 25, 2025, OFCCP Acting Director Michael Schloss submitted a memorandum to Acting Secretary of Labor, Vincent Micone, outlining OFCCP’s plan to significantly reduce its workforce and focus the agency’s efforts on enforcing contractor compliance with veterans and individuals with disabilities obligations in the wake of President Trump’s revocation of Executive Order 11246.
The memorandum has not been made public, but according to the reports, it includes the following points:
- As part of the reduction, OFCCP will close 51 of its 55 offices, and reduce its staff from 279 employees to a “limited field presence” of 50 employees, who will conduct compliance reviews.
- As restructured, OFCCP will “focus its mission” on enforcing protections under the Vietnam Era Veterans’ Readjustment Assistance Act (“VEVRAA”) and Section 503 of the Rehabilitation Act.
- The OFCCP division responsible for conducting statistical analyses would be eliminated as those “skillsets are no longer needed” for OFCCP’s future VEVRAA and Section 503 compliance efforts.
- A five-person policy division will review and suggest changes to OFCCP’s regulations “designed to reflect the removal of EO 11246” and the agency’s focus on VEVRAA and Section 503.
- 42 OFCCP employees have already chosen to participate in the federal government’s resignation program, and OFCCP will need additional funding for separation incentives and other severance pay in order to conduct the additional planned personnel cuts.
Proskauer’s Government Contractor Compliance Group will continue to monitor and report developments here.
