The day after President Trump took office, he signed Executive Order (EO) 14173 “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”. That EO, among other things, eliminated affirmative action requirements for federal contractors regarding race and gender. Many contractors assumed affirmative action in general had gone away.

However, OFCCP continues to enforce government contractors’ affirmative action obligations regarding military Veterans – under VEVRAA – and Individuals with Disabilities – pursuant to Section 503 of the Rehabilitation Act.

Contractors still must ensure compliance with these laws which, among other things, require the annual preparation of Affirmative Action Plans (AAPs).

OFCCP recently reminded us of those obligations when it updated the Veteran Hiring Benchmark to 5.1% effective July 30, 2025.

The Hiring Benchmark requirement states that –

Contractors required by the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) to develop a written affirmative action program (AAP) must also establish a hiring benchmark for protected veterans every year, or adopt the national benchmark…as part of their AAP update.

On July 2, 2025, DOL Secretary’s Order 08-2025 lifted a hold on OFCCP’s enforcement regarding Section 503 and VEVRAA, stating that –

Contractors are reminded, however, that Section 503 and VEVRAA, along with their implementing regulations, remain in effect and contractors should continue to comply with their obligations under the Section 503 and VEVRAA regulatory schemes.

The “Bottom Line”  – OFCCP is once again ‘open for business’ regarding enforcement of contractor’s affirmative action requirements for Veterans and Individuals with Disabilities.

Contractors should ensure they have prepared AAPs this year in compliance with VEVRAA and Section 503.

Important Note – A contractor that has not prepared current Section 503 and VEVRAA AAPs and then represents – in federal contracts or other document/certification – that it is in compliance with federal law, is creating significant legal risk, including under The False Claims Act, which this Administration has announced it will use as a robust tool against federal contractors who misrepresent their compliance with the law.

If you have questions or want to discuss, please contact your Silberman Law legal professional, or simply reply to this Alert.