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 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

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 at 1:00 pm ET on Thursday, July 10th 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.  Specifically, they will discuss: The authority of OFCCP to collect this information. How OFCCP might use the submitted data. Whether submissions are likely to be subject to FOIA. Potential implications for contractors who choose to submit or not to submit data. Practical recommendations for crafting an effective response. To register for this webinar, click here . For additional information, please visit FortneyScott’s website , including recent developments and FortneyScott’s webinars and podcasts .

On Friday, June 27, 2025, OFCCP Director Catherine Eschbach issued a letter inviting federal contractors to voluntarily share with OFCCP how they have implemented program changes under Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity . Participation is entirely at the contractor’s discretion, including the content and format of such information and contractors have 90 days from date of the letter, or until Sept 25, to submit info into contractor portal. Submission instructions are available on OFCCP’s Contractor Portal . Director Eschbach’s letter further encourages federal contractors to provide: Confirmation that they have reviewed their EO 11246 affirmative action efforts; An assessment of whether employment or recruitment practices require modification; and If so, a description of the changes made and the steps taken to modify those practices. The letter then provides a list of the type of employment practices federal contractors should consider providing, to include:  Trainings, sponsorship programs, leadership development programs, educational funding, or other privileges of employment available only to employees of a certain race or sex; Placement goals based on race or sex; Ratings by diversity organizations that graded employers on factors designed to promote the rise of non-white, non-male employees; Using applicants’ or employees’ participation in race- or sex-related (internal or external) groups or organizations as a “plus factor” or proxy for race or sex in employment and hiring decisions; Tying executive compensation to meeting race- or sex-based hiring, promotion, retention, representation, or other employee-demographic-related goals; Mandating courses, orientation programs, or trainings designed to emphasize and focus on racial stereotypes; and Encouraging employees to make recruitment efforts to or employment referrals of certain candidates based on race or sex. Director Eschbach concludes by recommending federal contractors consult the recent technical guidance by EEOC on what constitutes unlawful discrimination at work. FortneyScott is reaching out to DOL officials for further information. In the meantime, FortneyScott is actively advising clients on how to respond to this voluntary request. If you have any questions, please reach out to your FortneyScott attorney.

Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity , requires federal contractors to certify that their DEI programs comply with federal anti-discrimination laws. While some prime contractors have attempted to “flow down” this certification requirement to subcontractors, EO 14173 does not mandate such action. At present, subcontractors are not obligated to accept these flowed-down provisions. Additionally, under Executive Order 14275, Restoring Common Sense to Federal Procurement , amendments to the FAR/DFARS are expected, though no formal proposals have been issued to date. FortneyScott is closely tracking these developments and continues to advise clients as guidance evolves. For further information, please contact your FortneyScott attorney.

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 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

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 at 1:00 pm ET on Thursday, July 10th 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.  Specifically, they will discuss: The authority of OFCCP to collect this information. How OFCCP might use the submitted data. Whether submissions are likely to be subject to FOIA. Potential implications for contractors who choose to submit or not to submit data. Practical recommendations for crafting an effective response. To register for this webinar, click here . For additional information, please visit FortneyScott’s website , including recent developments and FortneyScott’s webinars and podcasts .

On Friday, June 27, 2025, OFCCP Director Catherine Eschbach issued a letter inviting federal contractors to voluntarily share with OFCCP how they have implemented program changes under Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity . Participation is entirely at the contractor’s discretion, including the content and format of such information and contractors have 90 days from date of the letter, or until Sept 25, to submit info into contractor portal. Submission instructions are available on OFCCP’s Contractor Portal . Director Eschbach’s letter further encourages federal contractors to provide: Confirmation that they have reviewed their EO 11246 affirmative action efforts; An assessment of whether employment or recruitment practices require modification; and If so, a description of the changes made and the steps taken to modify those practices. The letter then provides a list of the type of employment practices federal contractors should consider providing, to include:  Trainings, sponsorship programs, leadership development programs, educational funding, or other privileges of employment available only to employees of a certain race or sex; Placement goals based on race or sex; Ratings by diversity organizations that graded employers on factors designed to promote the rise of non-white, non-male employees; Using applicants’ or employees’ participation in race- or sex-related (internal or external) groups or organizations as a “plus factor” or proxy for race or sex in employment and hiring decisions; Tying executive compensation to meeting race- or sex-based hiring, promotion, retention, representation, or other employee-demographic-related goals; Mandating courses, orientation programs, or trainings designed to emphasize and focus on racial stereotypes; and Encouraging employees to make recruitment efforts to or employment referrals of certain candidates based on race or sex. Director Eschbach concludes by recommending federal contractors consult the recent technical guidance by EEOC on what constitutes unlawful discrimination at work. FortneyScott is reaching out to DOL officials for further information. In the meantime, FortneyScott is actively advising clients on how to respond to this voluntary request. If you have any questions, please reach out to your FortneyScott attorney.

Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity , requires federal contractors to certify that their DEI programs comply with federal anti-discrimination laws. While some prime contractors have attempted to “flow down” this certification requirement to subcontractors, EO 14173 does not mandate such action. At present, subcontractors are not obligated to accept these flowed-down provisions. Additionally, under Executive Order 14275, Restoring Common Sense to Federal Procurement , amendments to the FAR/DFARS are expected, though no formal proposals have been issued to date. FortneyScott is closely tracking these developments and continues to advise clients as guidance evolves. For further information, please contact your FortneyScott attorney.

Special guest, Victoria Lipnic , former EEOC Commissioner and Acting Chair who now is a Partner at Resolution Economics and leader of the firm’s Human Capital Strategy Group, joins FortneyScott attorneys, David Fortney and H. Juanita Beecher, to discuss the latest EEOC developments. Under the leadership of President Trump’s Acting Chair Andrea Lucas, the EEOC has been busy implementing the Administration’s agenda. This has included President Trump’s Executive Orders announcing forebearance on disparate impact enforcement, focusing on “Illegal DEI,” removing guidance and materials relating to gender identity, and focusing on religious discrimination, anti-Semitism, and anti-Christian bias. We also will discuss the status of the two announced nominations for EEOC commissioners and staffing of critical positions at the agency.

The U.S. Department of Labor (DOL) has launched a new Opinion Letter Program , expanding its compliance assistance for workers, employers, and stakeholders seeking clarity on federal labor laws. This initiative enhances guidance on workplace legal requirements by providing official interpretations from five key enforcement agencies. FortneyScott has extensive experience securing opinion letters, and the Firm has successfully obtained significant DOL opinion letters in the past. What Employers Need to Know Through this program, employers can receive official written interpretations of labor laws as they apply to specific workplace situations. The following agencies will issue tailored guidance: Wage and Hour Division (WHD): Provides opinion letters on wage, hour, and employment law matters. Occupational Safety and Health Administration (OSHA): Issues letters of interpretation on workplace safety regulations. Employee Benefits Security Administration (EBSA): Publishes advisory opinions and information letters on employee benefits compliance. Veterans’ Employment and Training Service (VETS): Releases opinion letters related to veteran employment laws. Mine Safety and Health Administration (MSHA): Offers compliance assistance through the new MSHA Information Hub, featuring regulatory updates and training resources. Why It Matters Opinion letters provide clarity, consistency, and transparency in federal labor law enforcement. Employers can use them as reliable legal guidance to ensure adherence to wage, benefits, and safety requirements, reducing the risk of noncompliance and potential litigation. Deputy Secretary of Labor Keith Sonderling emphasized that “opinion letters are an important tool in ensuring workers and businesses alike have access to clear, practical guidance.” Next Steps for Employers To leverage this resource, employers can: Explore previously issued guidance . Contact your FortneyScott attorney should you need any assistance in submitting a request for an opinion letter or compliance guidance. This program presents a valuable opportunity for businesses to navigate complex employment laws with authoritative insights from federal agencies. Employers should consider requesting opinion letters when facing regulatory uncertainties to strengthen compliance efforts

On Thursday, June 5, 2025, from 2:00 to 3:00 p.m. ET, FortneyScott will host a webinar entitled, EEOC Update in Trump 2.0 . Join us for this practical, timely discussion designed to help HR professionals, in-house counsel, and business leaders navigate these challenging areas. As a special guest, Victoria Lipnic , former EEOC Commissioner and Acting Chair who now is a Partner at Resolution Economics and leader of the firm’s Human Capital Strategy Group, will join FortneyScott attorneys, David Fortney and H. Juanita Beecher, to discuss the latest EEOC developments. Under the leadership of President Trump’s Acting Chair Andrea Lucas, the EEOC has been busy implementing the Administration’s agenda. This has included President Trump’s Executive Orders announcing forebearance on disparate impact enforcement, focusing on “Illegal DEI,” removing guidance and materials relating to gender identity, and focusing on religious discrimination, anti-Semitism, and anti-Christian bias. We also will discuss the status of the two announced nominations for EEOC commissioners and staffing of critical positions at the agency. To register for this webinar, click here . For additional information, please visit FortneyScott’s website , including recent developments and FortneyScott’s webinars and podcasts .

On May 19, 2025, the Department of Justice (DOJ) announced a new Civil Rights Fraud Initiative, which will utilize the False Claims Act (FCA) to investigate and, as appropriate, pursue claims against any recipient of federal funds that knowingly violates federal civil rights laws. Violations of the FCA can result in treble damages and significant penalties. Deputy US Attorney General Todd Blanche issued a memorandum instructing DOJ attorneys to file FCA claims against recipients of federal money if a recipient knowingly violates civil right laws and falsely certifies compliance with Title IV, Title VI, and Title IX of the Civil Rights Acts of 1964. The memorandum states that the FCA is also implicated whenever federal funding recipients and contractors certify compliance with civil rights laws while knowingly engaging in racist preferences, mandates, policies, programs and activities, including through diversity, equity, and inclusion (DEI) programs that assign benefits or burdens on race, ethnicity, or national origin. The memorandum provided the following example as violating the FCA: Accordingly, a university that accepts federal funds could violate the False Claims Act when it encourages antisemitism, refuses to protect Jewish students, allows men to intrude into women’s bathrooms, or requires women to compete against men in athletic competitions. The Initiative will utilize the FCA to investigate and pursue claims, and will be co-led by the DOJ’s Civil Division’s Fraud Section and the Civil Rights Division. Finally, the DOJ strongly encourages private parties “to protect the public interest by filing lawsuits and litigating claims” under the FCA—reminding the public that successful FCA claims will result in the reporting party receiving a share of the financial damages that are imposed again FCA violators. FortneyScott will continue to monitor these developments. If you have any questions, please reach out to your FortneyScott attorney.