What's changing for federal contractors
Federal changes that affect businesses holding federal contracts or subcontracts.
3 records
-
Effective
Office of Federal Contract Compliance Programs removes Executive Order 11246 affirmative action and nondiscrimination rules for federal contractors
- What changed
- The Office of Federal Contract Compliance Programs (OFCCP), part of the Department of Labor, issued a final rule that removes the regulations carrying out Executive Order 11246, effective October 26, 2026. The President revoked that order on January 21, 2025, and the Department says it has not enforced these rules since.
- Who's affected
- Federal contractors and subcontractors, including federally assisted construction contractors, that were covered by Executive Order 11246. The Department estimates about 107,165 supply and service entities and 9,982 construction contractors, employing about 32 million workers.
- What to do
- Nothing new is required. Written affirmative action programs, placement and participation goals, and other Executive Order 11246 duties go away. Consider updating contractor compliance processes, while keeping in mind that Title VII of the Civil Rights Act of 1964 and state and local laws still apply, and that OFCCP keeps its hearing procedures for veterans and disability cases.
-
Effective
Office of Federal Contract Compliance Programs removes disability self-identification and 7 percent utilization requirements for federal contractors
- What changed
- The Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) issued a final rule ending the Section 503 requirement to invite applicants and employees to self-identify disability status (Form CC-305), the related data computations, and the 7 percent utilization goal and analyses. OFCCP says those requirements conflict with the Americans with Disabilities Act (ADA).
- Who's affected
- Federal contractors and subcontractors with contracts over $20,000. The largest effect is on those with 50 or more employees and a contract of $50,000 or more, which must keep an affirmative action program.
- What to do
- This rule creates no new duties. From September 21, 2026, it removes the self-identification and utilization requirements and no longer requires contractors to consider counts of individuals with disabilities when assessing outreach. The nondiscrimination, reasonable accommodation, outreach, documentation and audit duties that remain still apply.
-
Effective
Office of Federal Contract Compliance Programs updates veterans' affirmative action rules to remove Executive Order 11246 references and reflect the $200,000 contract threshold
- What changed
- The Office of Federal Contract Compliance Programs (OFCCP) finalized technical changes to its Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) rules, effective September 21, 2026. The changes remove references to the revoked Executive Order 11246, move enforcement hearing procedures into the VEVRAA rules, and update the contract threshold from $150,000 to $200,000.
- Who's affected
- Federal contractors and subcontractors holding a contract of $200,000 or more. Those that also have 50 or more employees keep their affirmative action program (AAP) duties.
- What to do
- This rule creates no new duties for employers. Covered contractors may want to confirm which contracts meet the $200,000 threshold and update subcontract clauses, policies and record retention schedules that still use the old $150,000 figure or cite Executive Order 11246 procedures.