Another EO 14173 Development - Proposed Changes to OFCCP Regulations

July 2, 2025

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. 

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