EEOC Issues Final Rules Governing Employee Wellness Programs and Antidiscrimination Laws
May 17, 2016
On May 17, 2016, the Equal Employment Opportunity Commission (EEOC) issued two final rules (available here) that establish the extent to which employers may offer incentives to encourage employees and their spouses to participate in corporate wellness programs. The rules offer guidance on the degree to which employers may, consistent with Title I of the Americans with Disabilities Act (ADA) and Title II of the Genetic Information Nondiscrimination Act (GINA), inquire about health and disabilities or conduct medical examinations as a pre-condition to receiving incentives for wellness programs. The new regulations allow employer-sponsored wellness programs to move forward, provided that employers follow EEOC’s roadmap designed to safeguard against discrimination.
While the final rules track the proposed rules in many respects, they contain a few significant changes that will limit the incentives employers may offer employees and their spouses to participate in wellness programs. The final rules will go into effect on January 1, 2017.
The EEOC’s final rules are intended to harmonize the Health Insurance Portability and Accountability Act (HIPAA), the Patient Protection and Affordable Care Act (ACA) and the joint regulations issued by the Departments of Labor, Health and Human Services, and Treasury (the “Tricare regulations”). Although the ACA permits employers to offer financial incentives to encourage participation in wellness programs, there has been a tension between the incentives allowable under the ACA and Tricare regulations and those permitted under the ADA, which precludes employers from making medical inquiries or conducting medical examinations on employees unless they are part of a “voluntary” health program. There has also been tension with GINA, which limits employers’ ability to ask questions about an employee’s family medical history. In order to address these inconsistencies, the EEOC proposed rules in April 2015 to carve out a narrow exception to the ADA in order to allow employers to gather this information as part of a wellness program. In October 2015, the EEOC proposed rules addressing the extent to which employers may properly offer incentives to an employee’s spouse to participate in a wellness program.
The most important changes from the proposed rules and the most significant changes from the ACA and Tricare regulations are:
- Limits on Financial Incentives EEOC declined to revise financial incentive limits to make them consistent with those established in the Tricare regulations. In addition, employers will no longer be able to offer the same level of financial incentives to employees with family coverage as currently permitted under the ACA.
- ADA Employers may only offer financial incentives of up to 30% of the total cost of self-only coverage premiums. This is contrary to the ACA, which permits employers to offer financial incentives of up to 30% of the plan premium in which the employee and any family members are enrolled.
- GINA Spousal incentive are limited to up to 30% of the total cost of ?self-only? coverage under the group plan.
- Tobacco Cessation Employers may not offer enhanced incentives for programs aimed at curbing tobacco use if the program tests for the presence of nicotine. Under the Tricare regulations, employers may offer incentives of up to 50% of the cost of coverage for smoking cessation.
- New Rule Applies More Broadly The proposed rules only applied certain provisions, such as limits on financial inducements to wellness programs that were that were part of a group plan. The EEOC revised the proposed rule so that the entire rule now applies any employer-sponsored wellness program that offers incentives and asks disability-related questions or requires medical examinations, including a program offered outside a group health plan or a program offered by an employer who does not provide group health insurance.
- Notice/Confidentiality The proposed notice and confidentiality provisions will apply to wellness programs regardless of whether they are offered as part of a group health plan or offered as a benefit by employers that do not offer group health insurance to their employees.
- ADA Employers must provide participating employees with a notice that explains what information will be collected as part of a wellness program, with whom the information will be shared and for what purpose, limits on disclosure, and how personal health information will be kept confidential.
- GINA The new rule includes statutory notice and consent provisions for health and genetic services provided to employees and their family members.
- Reasonably Designed Standard As in the proposed rule, employee health programs must be reasonably designed to promote health and prevent disease. Employers protested that the requirement, which gives the EEOC the opportunity to determine the worthiness of an employer wellness program, is not only duplicative of the ACAs existing requirements, but goes well beyond the civil rights agency's area of expertise and statutory authority.
- ADA Safe Harbor Despite two court decisions to the contrary, the EEOC reaffirmed its position that the ADA safe harbor would not apply to wellness programs that are part of a group health plan.
There are a few silver linings for employers:
- No Affordability Standard - Although the EEOC did not include an ?affordability standard? in the proposed rule, the Commission requested public input on whether one would help the agency determine whether a wellness program is voluntary under the ADA.
- No Prior Written Authorization - The agency declined to include a requirement in the final rule that employees provide prior written and knowing authorization. Employers argued that such authorization was unnecessary and would only increase administrative and compliance costs.
With the new rules in place, employers should review their wellness plans to determine if they fall within the limited permissible exceptions to the ADA and GINA. While the intent of rules is to offer clarity, they can also blur some lines on a plan-by-plan basis-as often happens in the regulatory space. Employers need to remain vigilant that their plans are compliant.
If you have any questions, please contact Leslie Silverman, or your FortneyScott attorney with whom you work.
As the Trump Administration reshapes the U.S. Department of Labor (DOL), employers and federal contractors face significant shifts in agency leadership, budget priorities, enforcement programs, and regulatory strategies. Join FortneyScott attorneys on Thursday, August 14th at noon EDT for an in-depth webinar covering what these changes may mean for your organization. CLICK HERE to register. Key Topics to be Covered Include: New Leadership: Review of confirmed and pending DOL appointees, including Secretary Chavez-DeRemer and Deputy Secretary Keith Sonderling. Compliance & Self-Audit Programs: Expansion of opinion letter guidance and voluntary audit initiatives across W&H, VETS, OSHA, EBSA, MSHA, and OLMS. Aggressive Deregulatory Agenda: Efforts to revoke EO 11246 regulations, registered apprenticeship affirmative action requirements, and legacy EBSA guidance. Regulatory Revisions & Enforcement: Reforms to Section 503, VEVRAA, tip-credit rules, and child labor standards — including new penalty frameworks. Status of Biden-Era Rules: Updates on independent contractor, overtime, minimum wage, and PLA-related regulations. Proposed FY2026 Budget: 35% overall reduction, including workforce downsizing and potential elimination of OFCCP, Job Corp, and the Women’s Bureau. Strategic Considerations: How the return of the PAID program and potential OFCCP self-audit options may affect employer risk exposure. Who Should Attend: Compliance professionals, in-house counsel, HR and inclusion leaders, and anyone with responsibility for compliance with labor and employment laws.
On July 30, 2025, the U.S. Court of Appeals for the Ninth Circuit in a panel decision affirmed the District Court’s Order in Center for Investigative Reporting v. DOL compelling the DOL to disclose federal contractors’ EEO-1 reports in response to a Freedom of Information Act (“FOIA”) request. The underlying FOIA request was sent to the DOL’s Office of Federal Contract Compliance Programs (“OFCCP”) in 2022 seeking consolidated EEO-1 reports for all federal contractors filed between 2016 and 2020. DOL disclosed the EEO-1 report of non-objecting contractors but withheld from disclosure 16,755 EEO reports from 4,141 objection contractors. In its Opinion, the Ninth Circuit affirmed the District Order’s finding that EEO-1 reports are not exempt from disclosure under FOIA Exemption 4, which protects trade secrets and confidential commercial or financial information. Specifically, the Ninth Circuit found that EEO-1 report data is not “commercial” because workforce-compensation data is not designed to be bought and sold, nor does it reveal basic commercial operations, such as sales statistics, profits and losses, or inventories. The Court held that DOL failed to establish that EEO-1 reports describe an exchange of goods or services or the making of a profit. While the Ninth Circuit Order is limited to compelling the release of 2016-2020 reports in response to CIR’s FOIA request, DOL also relied on Exemption 4 to withhold the production of federal contractors’ 2021 consolidated EEO-1 reports in response to FOIA requests issued by the University of Utah and As You Sow. DOL has not issued a comment, and it is not known at this time whether the DOL will appeal this determination. FortneyScott will continue to monitor this and related cases.
On July 23, 2025, the Trump Administration issued America’s AI Action Plan that provides policy recommendations to achieve the goal of global AI dominance by the United States. Of particular interest to employers, the Action Plan includes recommendations to empower American workers in the age of AI, for training a skilled workforce for AI infrastructure and jobs, and for developing new criteria to address misinformation, including specifically identifying DEI. Join FortneyScott for a discussion on the employment-law related key provisions of America’s AI Action Plan and how they may impact the workforce.
On July 23, 2025, the Trump Administration issued America’s AI Action Plan that provides policy recommendations to achieve the goal of global AI dominance by the United States. Of particular interest to employers, the Action Plan includes recommendations to empower American workers in the age of AI, for training a skilled workforce for AI infrastructure and jobs, and for developing new criteria to address misinformation, including specifically identifying DEI. Join FortneyScott lawyers on Thursday, July 31, 2025, at 12:00 PM ET for a discussion of the employment-law related key provisions of America’s AI Action Plan and how they may impact the workforce. Please click here to register.
The U.S. Department of Labor (DOL) today announced several programs designed to help employers, as well as unions and pension plans, voluntarily assess and improve their compliance with federal labor laws. “Self-audits are one of the most effective ways to build a culture of compliance and trust,” said Deputy Secretary of Labor Keith Sonderling. “These programs are designed to give employers … the tools they need to correct potential violations proactively.” Of particular interest for employer compliance, the self-audit programs include: minimum wage and overtime under the Fair Labor Standards Act (FLSA) and benefits under the Family and Medical Leave Act (FMLA) (Payroll Audit Independent Determination (PAID)) ; protected veterans’ rights under the Uniformed Services Employment and Reemployment Rights Act (USERRA) (SALUTE - Support and Assistance for Leaders in USERRA Training and Employment) ; and, safety and health programs (Voluntary Protection Programs) . For employers dealing with Wage & Hour issues, the Payroll Audit Independent Determination (PAID) established in the prior Trump Administration for resolution of FLSA and FMLA compliance matters has been reinstituted. By using the PAID program, the audit results that are approved by DOL can provide significant protection against collective and class overtime claims for employers. FortneyScott has extensive experience in advising clients on self-audits that are overseen by DOL. Please contact your FortneyScott attorney for more information about these new compliance opportunities.
The Trump Administration announced an ambitious Artificial Intelligence Action Plan that provides policy recommendations to achieve the goal of global AI dominance by the United States. Of particular interest to employers, the Action Plan includes recommendations to empower American workers in the age of AI, for training a skilled workforce for AI infrastructure, jobs, and developing new criteria to address misinformation, including specifically identifying DEI. Overview of the Action Plan . As anticipated by Executive Order 14179 , Removing Barriers to American Leadership in Artificial Intelligence , the White House issued Winning the Race: America’s AI Action Plan (the “Action Plan”) on July 23, 2025. The Action Plan sets forth the Administration’s policy recommendations based on the following three pillars: (1) acceleration of AI innovation; (2) building American AI infrastructure, and (3) leading in international AI diplomacy and security. Further, the Action Plan contemplates initiatives led by various federal agencies, including the Department of Labor (“DOL”), to promote the advancement and adoption of AI throughout all facets of American life. Key initiatives of the Action Plan include significant deregulatory efforts aimed at promoting AI development: Consistent with Executive Order 14192 , Unleashing Prosperity Through Deregulation , the Office of Management and Budget (“OMB”) will work with all federal agencies to review, rescind, and/or amend regulatory and sub-regulatory hinderances to AI development and deployment; OMB will also work with federal agencies to limit discretionary AI-related federal funding to states with AI regulatory requirements that the administration considers onerous; and The National Institute of Standards and Technology (“NIST”) will revise its “AI Risk Management Framework” to eliminate references to misinformation, DEI, and climate change. The Key Workforce Provisions. The Action Plan tasks the DOL with leading, either on its own or in conjunction with other agencies, to empower American workers in the age of AI, including: Workforce funding streams should flow towards training, apprenticeships, and other skill-based initiatives that prioritize AI skill development; The Bureau of Labor Statistics should study AI’s impact on the labor market to incorporate the findings into DOL’s forthcoming “AI Workforce Research Hub”; and Exposure programs, pre-apprenticeships, training programs, and Registered Apprenticeships should be created and/or expanded for occupations related to the building, operation, and maintenance of AI infrastructure. The Action Plan also includes specific recommendations to DOL for training a skilled workforce for AI infrastructure work. DOL will: identify high-priority occupations; partner with state and local government to support the creation of industry-driven training programs; expand early career exposure and pre-apprenticeship programs; and, expand the use of Registered Apprenticeship in occupations that are critical to AI infrastructure. Employers Next Steps. As federal agencies accelerate and focus on AI adoption, private sector organizations need to assess how their workforce strategies align with emerging national priorities. Employers need to identify opportunities to ensure their workforces are trained and proficient with AI-related skills and technology. Companies may also want to explore paths to participate in or benefit from federal programs and funding aimed at supporting AI innovation, infrastructure, and international leadership. Additionally employers need to be cognizant of a likely tension between the federal deregulatory approach and a growing number of state law and regulatory requirements addressing the use of AI in the workplace. FortneyScott invites clients and friends for a complimentary webinar discussing these developments on July 31, 2025, at 12:00 PM ET. Please click here to register. If you have any questions, please reach out to your FortneyScott attorney.
As the Trump Administration reshapes the U.S. Department of Labor (DOL), employers and federal contractors face significant shifts in agency leadership, budget priorities, enforcement programs, and regulatory strategies. Join FortneyScott attorneys on Thursday, August 14th at noon EDT for an in-depth webinar covering what these changes may mean for your organization. CLICK HERE to register. Key Topics to be Covered Include: New Leadership: Review of confirmed and pending DOL appointees, including Secretary Chavez-DeRemer and Deputy Secretary Keith Sonderling. Compliance & Self-Audit Programs: Expansion of opinion letter guidance and voluntary audit initiatives across W&H, VETS, OSHA, EBSA, MSHA, and OLMS. Aggressive Deregulatory Agenda: Efforts to revoke EO 11246 regulations, registered apprenticeship affirmative action requirements, and legacy EBSA guidance. Regulatory Revisions & Enforcement: Reforms to Section 503, VEVRAA, tip-credit rules, and child labor standards — including new penalty frameworks. Status of Biden-Era Rules: Updates on independent contractor, overtime, minimum wage, and PLA-related regulations. Proposed FY2026 Budget: 35% overall reduction, including workforce downsizing and potential elimination of OFCCP, Job Corp, and the Women’s Bureau. Strategic Considerations: How the return of the PAID program and potential OFCCP self-audit options may affect employer risk exposure. Who Should Attend: Compliance professionals, in-house counsel, HR and inclusion leaders, and anyone with responsibility for compliance with labor and employment laws.
On July 30, 2025, the U.S. Court of Appeals for the Ninth Circuit in a panel decision affirmed the District Court’s Order in Center for Investigative Reporting v. DOL compelling the DOL to disclose federal contractors’ EEO-1 reports in response to a Freedom of Information Act (“FOIA”) request. The underlying FOIA request was sent to the DOL’s Office of Federal Contract Compliance Programs (“OFCCP”) in 2022 seeking consolidated EEO-1 reports for all federal contractors filed between 2016 and 2020. DOL disclosed the EEO-1 report of non-objecting contractors but withheld from disclosure 16,755 EEO reports from 4,141 objection contractors. In its Opinion, the Ninth Circuit affirmed the District Order’s finding that EEO-1 reports are not exempt from disclosure under FOIA Exemption 4, which protects trade secrets and confidential commercial or financial information. Specifically, the Ninth Circuit found that EEO-1 report data is not “commercial” because workforce-compensation data is not designed to be bought and sold, nor does it reveal basic commercial operations, such as sales statistics, profits and losses, or inventories. The Court held that DOL failed to establish that EEO-1 reports describe an exchange of goods or services or the making of a profit. While the Ninth Circuit Order is limited to compelling the release of 2016-2020 reports in response to CIR’s FOIA request, DOL also relied on Exemption 4 to withhold the production of federal contractors’ 2021 consolidated EEO-1 reports in response to FOIA requests issued by the University of Utah and As You Sow. DOL has not issued a comment, and it is not known at this time whether the DOL will appeal this determination. FortneyScott will continue to monitor this and related cases.
On July 23, 2025, the Trump Administration issued America’s AI Action Plan that provides policy recommendations to achieve the goal of global AI dominance by the United States. Of particular interest to employers, the Action Plan includes recommendations to empower American workers in the age of AI, for training a skilled workforce for AI infrastructure and jobs, and for developing new criteria to address misinformation, including specifically identifying DEI. Join FortneyScott for a discussion on the employment-law related key provisions of America’s AI Action Plan and how they may impact the workforce.
On July 23, 2025, the Trump Administration issued America’s AI Action Plan that provides policy recommendations to achieve the goal of global AI dominance by the United States. Of particular interest to employers, the Action Plan includes recommendations to empower American workers in the age of AI, for training a skilled workforce for AI infrastructure and jobs, and for developing new criteria to address misinformation, including specifically identifying DEI. Join FortneyScott lawyers on Thursday, July 31, 2025, at 12:00 PM ET for a discussion of the employment-law related key provisions of America’s AI Action Plan and how they may impact the workforce. Please click here to register.
The U.S. Department of Labor (DOL) today announced several programs designed to help employers, as well as unions and pension plans, voluntarily assess and improve their compliance with federal labor laws. “Self-audits are one of the most effective ways to build a culture of compliance and trust,” said Deputy Secretary of Labor Keith Sonderling. “These programs are designed to give employers … the tools they need to correct potential violations proactively.” Of particular interest for employer compliance, the self-audit programs include: minimum wage and overtime under the Fair Labor Standards Act (FLSA) and benefits under the Family and Medical Leave Act (FMLA) (Payroll Audit Independent Determination (PAID)) ; protected veterans’ rights under the Uniformed Services Employment and Reemployment Rights Act (USERRA) (SALUTE - Support and Assistance for Leaders in USERRA Training and Employment) ; and, safety and health programs (Voluntary Protection Programs) . For employers dealing with Wage & Hour issues, the Payroll Audit Independent Determination (PAID) established in the prior Trump Administration for resolution of FLSA and FMLA compliance matters has been reinstituted. By using the PAID program, the audit results that are approved by DOL can provide significant protection against collective and class overtime claims for employers. FortneyScott has extensive experience in advising clients on self-audits that are overseen by DOL. Please contact your FortneyScott attorney for more information about these new compliance opportunities.
The Trump Administration announced an ambitious Artificial Intelligence Action Plan that provides policy recommendations to achieve the goal of global AI dominance by the United States. Of particular interest to employers, the Action Plan includes recommendations to empower American workers in the age of AI, for training a skilled workforce for AI infrastructure, jobs, and developing new criteria to address misinformation, including specifically identifying DEI. Overview of the Action Plan . As anticipated by Executive Order 14179 , Removing Barriers to American Leadership in Artificial Intelligence , the White House issued Winning the Race: America’s AI Action Plan (the “Action Plan”) on July 23, 2025. The Action Plan sets forth the Administration’s policy recommendations based on the following three pillars: (1) acceleration of AI innovation; (2) building American AI infrastructure, and (3) leading in international AI diplomacy and security. Further, the Action Plan contemplates initiatives led by various federal agencies, including the Department of Labor (“DOL”), to promote the advancement and adoption of AI throughout all facets of American life. Key initiatives of the Action Plan include significant deregulatory efforts aimed at promoting AI development: Consistent with Executive Order 14192 , Unleashing Prosperity Through Deregulation , the Office of Management and Budget (“OMB”) will work with all federal agencies to review, rescind, and/or amend regulatory and sub-regulatory hinderances to AI development and deployment; OMB will also work with federal agencies to limit discretionary AI-related federal funding to states with AI regulatory requirements that the administration considers onerous; and The National Institute of Standards and Technology (“NIST”) will revise its “AI Risk Management Framework” to eliminate references to misinformation, DEI, and climate change. The Key Workforce Provisions. The Action Plan tasks the DOL with leading, either on its own or in conjunction with other agencies, to empower American workers in the age of AI, including: Workforce funding streams should flow towards training, apprenticeships, and other skill-based initiatives that prioritize AI skill development; The Bureau of Labor Statistics should study AI’s impact on the labor market to incorporate the findings into DOL’s forthcoming “AI Workforce Research Hub”; and Exposure programs, pre-apprenticeships, training programs, and Registered Apprenticeships should be created and/or expanded for occupations related to the building, operation, and maintenance of AI infrastructure. The Action Plan also includes specific recommendations to DOL for training a skilled workforce for AI infrastructure work. DOL will: identify high-priority occupations; partner with state and local government to support the creation of industry-driven training programs; expand early career exposure and pre-apprenticeship programs; and, expand the use of Registered Apprenticeship in occupations that are critical to AI infrastructure. Employers Next Steps. As federal agencies accelerate and focus on AI adoption, private sector organizations need to assess how their workforce strategies align with emerging national priorities. Employers need to identify opportunities to ensure their workforces are trained and proficient with AI-related skills and technology. Companies may also want to explore paths to participate in or benefit from federal programs and funding aimed at supporting AI innovation, infrastructure, and international leadership. Additionally employers need to be cognizant of a likely tension between the federal deregulatory approach and a growing number of state law and regulatory requirements addressing the use of AI in the workplace. FortneyScott invites clients and friends for a complimentary webinar discussing these developments on July 31, 2025, at 12:00 PM ET. Please click here to register. If you have any questions, please reach out to your FortneyScott attorney.
On Friday, June 27, 2025, OFCCP Director Catherine Eschbach issued a letter inviting federal contractors to voluntarily submit information to OFCCP detailing contractors’ efforts to “wind down compliance with the EO 11246 regulatory scheme and ensure full compliance with the Nation’s non-discrimination laws.” Join David Fortney, Liz Bradley and Nita Beecher as they analyze Director Eschbach’s letter and provide practical insights to assist federal contractors in deciding whether or how to respond to this request.
The U.S. Department of Labor has officially lifted the abeyance on OFCCP’s enforcement of Section 503 of the Rehabilitation Act (503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) via Secretary's Order 08-2025 , issued by Secretary Lori Chavez-DeRemer. This development follows the January 2025 revocation of Executive Order (EO) 11246 through the Trump Administration's EO 14173, which fundamentally altered OFCCP’s enforcement priorities and led to the temporary pause of Section 503 and VEVRAA activities via Secretary’s Order 03-2025. Key Takeaways for Employers Immediate Resumption of Investigations: OFCCP will begin processing all Section 503 and VEVRAA complaints held during the abeyance. New complaints filed during the suspension period will also move forward. Administrative Closure of Compliance Reviews: Due to historical entwinement of EO 11246 review formats with Section 503/VEVRAA, all pending compliance reviews are being administratively closed. Formal notifications will be issued to affected contractors. AAP Certification Still Closed: Despite the resumed enforcement, the affirmative action program (AAP) certification portal remains closed . Employers are still obligated to maintain compliance with Section 503 and VEVRAA regulations. VAHBP Enforcement Moratorium Extended: Providers under the Veterans Affairs Health Benefits Program (VAHBP) remain exempt from affirmative action enforcement under Section 503 and VEVRAA through May 7, 2027 . They are still subject to nondiscrimination complaint investigations. What Employers Should Do Now Watch for formal notice of compliance review closures and updates from OFCCP. Monitor communications from OFCCP and the Department of Labor for further guidance. Reach out to FortneyScott for assistance to: Review existing Section 503 and VEVRAA policies and documentation. Ensure ongoing compliance with regulatory obligations, such as preparation of 503 and VEVRAA AAPs.
The DOL is proposing to rescind the regulations implementing EO 11246 in addition to revising its regulations for Section 503 and VEVRAA in response to President Trump’s EO 14173 and EO 14219 . Proposed Changes to Section 503 Regulations The Trump Administration has proposed significant changes to the Section 503 regulations applicable to federal contractors. Specifically, the proposal: Eliminates 41 C.F.R. § 60-741.42, which requires contractors to invite applicants and employees to self-identify disability status. The Administration asserts that such data collection is inconsistent with the ADA, notwithstanding EEOC guidance affirming its permissibility. Removes the requirement under 41 C.F.R. § 60-741.44(k) for contractors to document data collection analysis , while retaining the annual assessment obligation for evaluating outreach and recruitment efforts under 41 C.F.R. § 60-741.44(f)(3). Rescinds the 7% utilization goal in 41 C.F.R. § 60-741.45 , citing its reliance on revoked EO 11246 job group structures. The proposal makes clear it will not impose a substitute analysis, referencing the directive in EO 14219 to reduce regulatory burdens. Removes cross-references and provisions tied to EO 11246 , while adding provisions for administrative enforcement proceedings under 41 C.F.R. § 60-741.65. These changes reflect a broader deregulatory approach and raise significant compliance and policy considerations for federal contractors. Proposed Changes to VEVRAA The proposed changes to VEVRAA are simply to remove cross references and language citing EO 11246 authority and to add administrative enforcement proceeding provisions to 41 C.F.R. § 60-300. VEVRAA proposal retains both the self-identification requirements for protected veterans and the hiring benchmark (at this point, OFCCP has not updated its hiring benchmark for 2025). Conclusion Despite the impending elimination of OFCCP—set for October 1, 2025—the comment periods for all three regulatory developments end September 2, 2025. OMB will then have an additional 30-day comment period. If you are interested in filing comments to these proposed changes, please let FortneyScott know by reaching out to your FortneyScott attorney or sending us an email at info@fortneyscott.com . In the meantime, FortneyScott will continue to monitor these and other developments related to EO 14173.
The OFCCP has made available for public review proposed changes to the regulations under VEVRAA and Section 503 . It has also released a proposal to eliminate the regulations tied to Executive Order 11246. These proposed rules are expected to be officially published in the Federal Register tomorrow, initiating a 60-day period for public comment. The move to rescind the Executive Order 11246 regulations follows the recent revocation of that order through Executive Order 14173. Changes suggested for the VEVRAA regulations appear to be minimal and would not significantly alter compliance obligations for contractors. In contrast, the proposed updates to the Section 503 rules would eliminate the 7 percent utilization goal by job group and the requirement that applicants/employees self-identify as disabled while retaining the annual outreach and recruitment assessment. Final rules are not anticipated for several months, and in the meantime, the current VEVRAA and Section 503 regulations remain in effect. The proposed rules will be published in the Federal Register tomorrow : https://www.federalregister.gov/public-inspection/current#regular-filing-federal-contract-compliance-programs-office
