Office of Federal Contract Compliance Programs moves veterans enforcement procedures into its own rules and updates contract threshold to $200,000
In short
- What changed
- The Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) issued a final rule amending its Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) rules in the Code of Federal Regulations (CFR). It moves the enforcement hearing procedures into the VEVRAA rules after Executive Order 11246 was revoked, and it updates the coverage threshold from $150,000 to $200,000. It takes effect September 21, 2026.
- Who's affected
- Federal contractors and subcontractors with a contract or subcontract of $200,000 or more. Affirmative action program duties apply to those that also have 50 or more employees.
- What to do
- The rule creates no new obligations. Consider checking your contracts against the $200,000 threshold, and updating subcontract clauses, record retention schedules and internal references to the old hearing procedures.
What changed
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From the sourceSupplementary Information, III.C Final Rule Summary
moving the administrative proceeding procedures directly into the VEVRAA regulations, specifically into 41 CFR 60-300.65(c) through (mm), except where duplicative of current part 60-300 provisions
Also: Supplementary Information, III.C Final Rule Summary
removing the cross-reference to the Executive Order 11246 administrative proceeding procedures found in 41 CFR 60-300.65(b)
The rule moves the hearing procedures for VEVRAA enforcement cases directly into 41 CFR 60-300.65(c) through (mm), and removes the cross-reference to the Executive Order 11246 procedures.
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From the sourceSUMMARY
These revisions will align the regulations with Executive Order 14173 and remove the VEVRAA regulations' cross-references to the Executive Order 11246 authority.
Also: SUMMARY
Executive Order 11246 was revoked by Executive Order 14173 on January 21, 2025.
Executive Order 11246 was revoked by Executive Order 14173 on January 21, 2025, and the rule removes the VEVRAA regulations' references to it.
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From the sourceFootnote 2
Effective October 1, 2025, the coverage threshold under VEVRAA increased from $150,000 to $200,000
Also: Footnote 5
DOL has updated the jurisdictional threshold amounts included in 41 CFR 60-300.1(b), 41 CFR 60-300.2(f), (o), (p), (aa), 41 CFR 60-300.4(a)(1)-(2), 41 CFR 60-300.5(a)(11), 41 CFR 60-300.40(a), and 41 CFR 60-300.80(a)
The rule updates the dollar thresholds throughout the VEVRAA regulations to $200,000, reflecting the inflation adjustment that raised the coverage threshold from $150,000. This covers applicability, the definitions of contractor and subcontractor, coverage, the subcontract clause, the affirmative action program requirement and recordkeeping.
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From the sourceSupplementary Information, II. Need for the Rulemaking
DOL also proposed removal of a reference to 41 CFR part 60-3 because this citation is part of the revoked Executive Order 11246 authority.
Also: 41 CFR 60-300.21(g)(2)
The Uniform Guidelines on Employee Selection Procedures do not apply to 38 U.S.C. 4212 and are similarly inapplicable to this part.
The rule replaces a reference to 41 CFR part 60-3 with a statement that the Uniform Guidelines on Employee Selection Procedures do not apply to the veterans statute or to these regulations.
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From the sourceSupplementary Information, II. Need for the Rulemaking
DOL finds good cause to make these changes without prior notice and comment pursuant to 5 U.S.C. 553(b)(B).
The agency made the threshold updates without a separate round of public comment, citing good cause because the adjustments were already set through the Federal Acquisition Regulation Council's rulemaking.
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AmendSignal analysisSupplementary Information, III.B Other Comments
DOL is not addressing these comments in the final rule as they are outside the scope of this rulemaking.
Affirmative action program requirements, show cause notice procedures and the veterans hiring benchmark are not changed by this rule. The agency declined to address comments asking to change them as outside the scope of this rulemaking.
Who is affected
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From the source41 CFR 60-300.2(f)
Contractor means, unless otherwise indicated, a prime contractor or subcontractor holding a contract of $200,000 or more.
Also: 41 CFR 60-300.4(a)(1)
Contracts and subcontracts of $200,000 or more are covered by this part.
The VEVRAA regulations cover federal contractors and subcontractors holding a contract or subcontract of $200,000 or more.
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From the source41 CFR 60-300.40(a)
The requirements of this subpart apply to every Government contractor that has 50 or more employees and a contract of $200,000 or more.
Contractors that also have 50 or more employees must maintain an affirmative action program for protected veterans.
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From the source41 CFR 60-300.1(b)
who are applicants or employees of a contractor with a Government contract of $25,000 or more entered into prior to December 1, 2003, and unmodified since to a contract amount of $200,000
Nondiscrimination protections and the right to file complaints also continue to apply to certain veterans working for or applying to contractors with older contracts of $25,000 or more entered into before December 1, 2003 and not modified since to $200,000.
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AmendSignal analysisSupplementary Information, IV.B Costs and Regulatory Designation
DOL lacks data to determine how many contractors will no longer be covered as a result of this change, but DOL expects the number to be small given the incremental nature of the threshold increase.
Contractors whose federal contracts fall between $150,000 and $200,000 may no longer be covered. The agency expects the number of such contractors to be small but does not have data on it.
What it means in practice
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From the sourceSupplementary Information, IV.B Costs and Regulatory Designation
It imposes no new obligations.
Also: Supplementary Information, IV.B Costs and Regulatory Designation
Because the increased threshold exceeds a pure inflation adjustment, DOL expects that fewer contractors will be subject to the relevant VEVRAA regulatory requirements, resulting in reduced compliance burdens.
The agency says the rule imposes no new obligations and expects fewer contractors to be subject to VEVRAA requirements, reducing compliance burdens.
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From the sourceSupplementary Information, IV.D Review Under the Paperwork Reduction Act
This final rule imposes no new information or recordkeeping requirements and does not impact current information collections.
The rule creates no new reporting or recordkeeping requirements.
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From the sourceSupplementary Information, III.A Comments Related to the Administrative Proceeding Procedures
This final rule does not expand DOL's remedial authority, create new causes of action, or establish new enforcement mechanisms.
Also: Supplementary Information, III.A Comments Related to the Administrative Proceeding Procedures
It merely relocates the existing procedural provisions after the revocation of Executive Order 11246.
The agency says the rule does not expand its remedies or enforcement powers. It only relocates existing procedures.
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AmendSignal analysis41 CFR 60-300.65(h)(1)
Within 20 days after the service of the complaint, the defendant shall file an answer
Also: 41 CFR 60-300.65(ff)
failure to comply with the Administrative Order shall result in the immediate cancellation, termination, and suspension of the respondent's contracts and/or debarment of the respondent from further contracts.
A contractor facing a VEVRAA enforcement case will now find the hearing rules, including short deadlines such as 20 days to answer a complaint and the sanctions for ignoring a final order, in 41 CFR 60-300.65 itself.
What to do
Required
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From the source41 CFR 60-300.40(a)
The requirements of this subpart apply to every Government contractor that has 50 or more employees and a contract of $200,000 or more.
Also: Supplementary Information, I. Background
contractors with 50 or more employees and a single Federal contract or subcontract of $200,000 or more are also required to develop and maintain an affirmative action program (AAP), where they must implement and document their affirmative action efforts on an annual basis
Contractors with 50 or more employees and a contract of $200,000 or more must develop and maintain an affirmative action program and document their efforts each year. This is an existing requirement, restated with the updated threshold.
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From the source41 CFR 60-300.5(a)(11)
The contractor will include the provisions of this clause in every subcontract or purchase order of $200,000 or more, unless exempted by the rules, regulations, or orders of the Secretary issued pursuant to VEVRAA
Covered contractors must include the VEVRAA equal opportunity clause in every subcontract or purchase order of $200,000 or more, unless exempted. This is an existing requirement, restated with the updated threshold.
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From the source41 CFR 60-300.80(a)
any personnel or employment record made or kept by the contractor shall be preserved by the contractor for a period of two years from the date of the making of the record or the personnel action involved, whichever occurs later.
Also: 41 CFR 60-300.80(a)
However, if the contractor has fewer than 150 employees or does not have a Government contract of at least $200,000, the minimum record retention period will be one year
Contractors must keep personnel and employment records for two years, or one year if they have fewer than 150 employees or no government contract of at least $200,000. This is an existing requirement, restated with the updated threshold.
Worth considering
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AmendSignal suggestion41 CFR 60-300.4(a)(1)
Contracts and subcontracts of $200,000 or more are covered by this part.
Also: 41 CFR 60-300.40(a)
The requirements of this subpart apply to every Government contractor that has 50 or more employees and a contract of $200,000 or more.
Consider reviewing your federal contracts and subcontracts against the $200,000 threshold, and your headcount against the 50-employee affirmative action program threshold, to confirm which VEVRAA obligations apply to you.
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AmendSignal suggestion41 CFR 60-300.5(a)(11)
The contractor will include the provisions of this clause in every subcontract or purchase order of $200,000 or more
Consider updating subcontract and purchase order templates so the VEVRAA equal opportunity clause flow-down uses the $200,000 figure.
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AmendSignal suggestion41 CFR 60-300.4(a)(2)
the equal opportunity clause shall be applied to such contract whenever the amount of a single order is $200,000 or more.
Consider tracking single orders under indefinite delivery contracts, since the clause applies whenever a single order is $200,000 or more and then stays for the life of the contract.
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AmendSignal suggestion41 CFR 60-300.80(a)
However, if the contractor has fewer than 150 employees or does not have a Government contract of at least $200,000, the minimum record retention period will be one year
Consider checking that record retention schedules use the correct period (two years, or one year for contractors with fewer than 150 employees or no contract of at least $200,000).
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AmendSignal suggestionSupplementary Information, III.C Final Rule Summary
removing the cross-reference to the Executive Order 11246 administrative proceeding procedures found in 41 CFR 60-300.65(b)
Consider updating compliance manuals or policies that point to the Executive Order 11246 hearing procedures for VEVRAA matters so they refer to 41 CFR 60-300.65 instead.
Open questions
The source leaves these open. We'll update this record if a later document answers them.
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Has the separate Section 503 of the Rehabilitation Act rule, which would rescind 41 CFR part 60-30, been finalized?
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Will the Supreme Court's review of Sun Valley Orchards change how VEVRAA enforcement hearings or remedies work?
History
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Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended; Correction Source (opens in a new tab)
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Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended Source (opens in a new tab)
Sources
- Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended, 91 FR 54234 (August 21, 2026) (opens in a new tab)
- Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended; Correction, 91 FR 55748 (August 31, 2026) (opens in a new tab)