Last week, U.S. Secretary of Labor Lori Chavez-DeRemer issued Order 08-2025 and the Office of Federal Contract Compliance Programs (OFCCP) issued a Bulletin explaining the Secretary’s Order. Importantly for federal contractors, “OFCCP will be exercising its discretion to administratively close all pending compliance reviews and will take no further action related to the scheduling list released in November 2024.” Separately, the Secretary’s Order also lifts the abeyance on veterans and disability program areas.
The Order and Bulletin are consistent with President Trump’s January 2025 Executive Order 14173 revoking Executive Order 11246 (race and gender), which we discussed in a previous blog post. Shortly after President Trump’s Executive Order 14173, then-Acting Secretary of Labor Vincent Micone issued Order 03-2025, requiring OFCCP to cease and desist all investigative and enforcement activity under Executive Order 11246. Order 03-2025 also placed in abeyance OFCCP’s activity related to Section 503 of the Rehabilitation Act (disability) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) (veterans).
Under current Order 08-2025, the Executive Order 11246 provisions of Order 03-2025 are unaffected and remain in full force and effect—OFCCP may not conduct compliance reviews regarding race and gender. That development is not surprising, as President Trump’s Executive Order rescinded Executive Order 11246, thus removing the underlying authority on which OFCCP conducted compliance reviews regarding race and gender.
Although Order 08-2025 and the corresponding Bulletin from OFCCP purport to allow OFCCP to resume activity under the Section 503 and VEVRAA program areas, it is not immediately clear what that means for federal contractors in practical terms because OFCCP “continues to work to revise its processes and systems to reflect changes to OFCCP’s scope of mission and authority.”
Order 08-2025 also provides that veterans’ and disability complaints held during the abeyance will “immediately resume being processed as appropriate and affected parties will be promptly notified.” Likewise, new veterans and disability complaints filed during the abeyance “will also begin processing as normal.” As such, federal contractors subject to veterans’ and disability complaints should expect to receive communications from OFCCP soon regarding those complaints.
For contractors under veterans and disability compliance reviews, Order 08-2025 is likely welcome news because OFCCP will administratively close all pending compliance reviews and take no further action based on the scheduling list released in November 2024 (during the final weeks of President Biden’s administration). Additionally, OFCCP’s certification period regarding the Section 503 and VEVRAA affirmative action program (AAP) will remain closed at this time.
Contractors are reminded, however, that Section 503 and VEVRAA, along with their implementing regulations, remain in effect and contractors “should continue to otherwise comply with their obligations under the Section 503 and VEVRAA regulatory schemes.” In other words, contractors should continue to implement and update veterans and disability affirmative action programs and to otherwise prepare documentation required by Section 503 and VEVRAA.
As always, federal contractors with compliance questions or who are subject to veterans’ and disability complaints should contact their employment attorneys for specific advice.
