Quick Hits
- OFCCP finalized three rules rescinding and revising federal contractors’ and subcontractors’ affirmative action obligations following the 2025 revocation of EO 11246.
- The final rules significantly modify obligations under Section 503 by rescinding disability self-identification invitations and the 7 percent utilization goal, rescinding OFCCP’s race- and sex-based regulations, and making technical amendments to the VEVRAA regulations.
- The rules have varying effective dates, which means that contractors will need to pay close attention to when the adjustments may apply to their ongoing affirmative action programs (AAPs) and other compliance matters.
OFCCP’s final rules follow President Trump’s EO 14173, issued on January 21, 2025.
‘Rescission of Executive Order 11246 Implementing Regulations’
EO 14173 revoked EO 11246, which, for more than sixty years, had established the legal framework requiring federal contractors to maintain AAPs based on race and sex. The final rule, “Rescission of Executive Order 11246 Implementing Regulations,” completes the corresponding regulatory adjustments by rescinding parts of Title 41 of the Code of Federal Regulations (CFR), chapter 60, which was promulgated under EO 11246. Specifically, the rule rescinds CFR Parts 60-1, 60-2, 60-3, 60-4, 60-20, 60-40, 60-50, and 60-999, and removes components under EO 11246 in Part 60-30. Those regulations addressed contractors’ previous obligations to develop race- and sex-based AAPs, and provided for OFCCP’s related enforcement authority.
The Section 503 final rule makes significant changes, most notably rescinding the requirement that contractors affirmatively invite applicants and employees to voluntarily self-identify a current or former disability (using the CC-305 form), eliminating the 7 percent utilization goal for individuals with disabilities, and removing data collection and utilization analysis requirements. The rule also updates the basic coverage threshold from $15,000 to $20,000 to reflect recent inflationary adjustments. Despite the many rescissions, the rule retains Section 503’s core disability nondiscrimination protections, reasonable accommodation requirements, outreach assessment obligations, and AAP requirements. The U.S. Department of Labor’s (DOL) commentary notes that the disability self-identification framework conflicts with the plain text of the Americans with Disabilities Act.
The VEVRAA final rule makes technical changes to the VEVRAA regulations, removing cross-references to EO 11246 (relocating the administrative enforcement proceeding procedures from the former Part 60-30 and incorporating them directly into the VEVRAA regulations at 41 CFR Part 60-300), removes an unnecessary citation to Section 503 authority, and updates the jurisdictional coverage threshold from $150,000 to $200,000 in accordance with recent inflationary adjustments established by the Federal Acquisition Regulatory (FAR) Council.
Next Steps
These final rules change the antidiscrimination requirements applicable to federal contractors or other employers. The rules do not eliminate prohibitions on employment discrimination under Title VII of the Civil Rights Act of 1964, or elsewhere under federal, state, and local antidiscrimination statutes.
The three final rules have different effective dates, so contractors should pay close attention to when the adjustments apply to their specific ongoing AAP cycles and other compliance matters. Contractors may wish to review their antidiscrimination policies to ensure continued compliance with Title VII and other federal, state, and local antidiscrimination laws. They may further wish to audit any prior activities that were previously driven solely by compliance with rescinded provisions of EO 11246, Section 503, or VEVRAA, and assess how changes can be legally implemented or updated to meet broader business purposes.
For more information on the DOL’s three final rules published by OFCCP, please join us for a webinar, “OFCCP’s Three Final Rules: A Reset for Federal Contractors,” on Wednesday, August 26, 2026, from 2:00 p.m. to 3:00 p.m. EDT. The speakers will address which federal contractor requirements remain in effect and how to guide compliance efforts related to continuing obligations under Title VII, state and local laws, and relevant executive orders. Register here.
Ogletree Deakins’ Government Contracting and Compliance Practice Group and Workforce Analytics and Compliance Practice Group will continue to monitor developments and will provide updates on the Diversity, Equity, and Inclusion Compliance, Government Contracting and Compliance, and Workforce Analytics and Compliance blogs as additional information becomes available.
This article and more information on how the Trump administration’s actions impact employers can be found on Ogletree Deakins’ Administration Resource Hub.
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