The U.S. Department of Labor's (DOL) Office of Federal Contract Compliance Programs (OFCCP) has issued three proposed rules to implement President Trump's Executive Order (EO) 14173, which revoked Executive Order 11246 and ended federal affirmative action requirements related to race and sex in federal contracting. The proposed rules, slated for publication on July 1, 2025, would formally rescind the EO 11246 implementing regulations while retaining and revising affirmative action and nondiscrimination requirements for protected veterans and individuals with disabilities under separate laws.
Quick Hits
- The proposed rules would rescind the nondiscrimination and affirmative action regulations under EO 11246 while retaining and revising OFCCP's enforcement responsibilities for affirmative action and nondiscrimination protections for protected veterans and individuals with disabilities.
- Comments on the proposed rules will be accepted until August 30, 2025, following the publication in the Federal Register on July 1, 2025.
- These proposed rules, if finalized, would not take effect for several months, and federal contractor obligations remain unchanged until a final rule is issued and becomes effective.
The proposed regulations seek to implement the policy changes under President Trump's January 21, 2025, EO 14173, which revoked the prior EO 11246 and left the future of the OFCCP uncertain. EO 11246 prohibited employment discrimination by federal contractors and subcontractors based on race, color, religion, sex, sexual orientation, gender identity, and national origin and mandated affirmative action programs.
Currently, the OFCCP retains responsibility for enforcing federal contracting nondiscrimination and affirmative action obligations for veterans under the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) and individuals with disabilities under Section 503 of the Rehabilitation Act of 1973.
The proposed regulations are:
- "Rescission of Executive Order 11246 Implementing Regulations" — The proposed rule would rescind the regulations in41 CFR parts 60 implementing EO. The DOL further justified that the regulations should be rescinded as they are "vulnerable to legal challenge" following the Supreme Court of the United States' June 2023 decision in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College (SFFA), which struck down affirmative action in college admissions.
- "Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act" — The DOL proposed updates would revise the VEVRAA implementing regulations to align with recent case law and executive orders, including EO 14173 and EO 14219, which called for the streamlining of federal government processes. Specifically, the proposed regulations would remove references to EO 11246 and add administrative enforcement proceeding provisions directly to the VEVRAA regulations in 41 CFR part 60-300.
- "Modifications to the Regulations Implementing Section 503 of the Rehabilitation Act" — The proposal would revise the implementing regulations for Section 503 to align with EO 14173 and EO 14219. Specifically, it would remove cross-references to EO 11246 in the Section 503 regulations. The proposal would also rescind the requirements for contractors to invite applicants and employees to self-identify their disability status and to analyze progress toward the 7 percent utilization goal for individuals with disabilities. Additionally, it would incorporate administrative enforcement procedures directly into the Section 503 regulations in 41 CFR part 60-741.
The proposed regulations come weeks after the Trump administration signaled plans to completely eliminate the OFCCP and transfer the agency's remaining responsibilities to enforce protections in federal contracting for veterans and workers with disabilities to the Veterans' Employment and Training Service (VETS) and the U.S. Equal Employment Opportunity Commission (EEOC), respectively.
Next Steps
The proposed regulations are set to be published in the Federal Register on July 1, 2025. The DOL will receive comments on the proposed regulations until August 30, 2025, or sixty days after publication. In the meantime, the current regulations remain in effect and must be followed.
For more information, please join us for our upcoming webinar, "The Latest OFCCP News: Proposed Rule Changes as Potential Agency Exit Looms," which will take place on Wednesday, July 9, 2025, from 2:00 p.m. to 3:00 p.m. EDT. The speakers, Lauren B. Hicks, T. Scott Kelly, and Christopher J. Near, will review the latest changes and what they mean for covered contractors, as well as best practices for continued compliance efforts under EO 14173, Section 503, and VEVRAA. Register here.
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