But how will it spend all that money?
On February 3, President Trump signed an appropriations bill that allocates $100 million to the Office of Federal Contract Compliance Programs through September. This amount is similar to the OFCCP’s past annual allowances and is only $11 million less than the allocation for the prior fiscal year.
The Trump Administration approved this substantial funding for the OFCCP despite
- Rescinding Executive Order 11246, eviscerating the agency’s primary enforcement mission.
- Planning to transfer authority over the other laws enforced by the OFCCP to other agencies.
- Laying off or transferring all but a handful of OFCCP employees.
- Proposing to eliminate significant portions of the remaining contractor reporting obligations.
- Shuttering the Contractor Portal, which required contractors to certify compliance annually.
- Closing all open compliance reviews and ceasing virtually all enforcement activities.
- Allocating no funds for the OFCCP in the White House budget proposal (see page 26).
Currently, the OFCCP is responsible for ensuring that contractors comply with Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act. These laws require contractors to develop annual affirmative action plans for individuals with a disability and protected veterans. Contractors are also obligated to collect data from applicants and employees, and to analyze various workforce and hiring metrics on an annual basis.
Contractors should prepare now
It is unclear how the OFCCP will use the budgeted funds, given the developments described above. However, contractors should be prepared in the event of a resumption of enforcement activity.
We recommend that contractors continue to comply with Section 503 and VEVRAA obligations:
- Develop annual affirmative action plans on a timely basis.
- Solicit voluntary self-identification regarding disability and veteran status from applicants and employees.
- Ensure that required postings, such as the Know Your Rights poster, are available to applicants and employees.
- Review mental and physical job requirements for accuracy.
- List all job openings with the local state unemployment agency (unless the position is to be filled internally, will last for 3 days or less, or is for executive/senior management).
- Engage in good faith efforts to recruit individuals with a disability and protected veterans.
- Assess the effectiveness of good faith recruitment efforts.
For a full list of compliance obligations for contractors or other assistance, please contact a member of Constangy’s EEO/Contractor Compliance, Reporting & Analytics practice group.
PartnerCara co-chairs Constangy’s practice groups relating to EEO/Contractor Compliance, Reporting & Analytics, and DEI Compliance. She advises employers on proactive strategies to help avoid litigation and has defended employers ...
From developments in pay equity and changing requirements in data reporting, to DEI risk mitigation, Title VII compliance, and shifts in enforcement of Section 503 & VEVRAA, the EEO Compliance Dispatch blog is designed to keep employers informed and ahead of the curve.
Whether you’re a federal contractor navigating audits, an HR professional tackling pay transparency, or in-house counsel tracking state and local reporting requirements, our updates, legal analysis, and compliance strategies are tailored to help you manage risk and support a more inclusive workplace.
