Labor Secretary Lifts Abeyance on OFCCP Disability and Veteran Matters

Quick Hits

• Secretary’s Order 08-2025 lifts the prior abeyance placed on investigative and enforcement activities related to Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).
• OFCCP stated that it intends to continue processing previously filed and new Section 503 and VEVRAA complaints, and reminded contractors that compliance obligations, including affirmative action programs (AAPs), under both laws remain in effect.
• Compliance reviews, often referred to as “audits,” that were held in abeyance in January 2025 will be administratively closed.

Following the issuance of Executive Order (EO) 14173, the DOL issued Secretary’s Order 03-2025 on January 24, 2025, which directed all DOL employees, including OFCCP employees, to “[c]ease and desist all investigative and enforcement activity under the rescinded Executive Order 11246 and the regulations promulgated under it.”

OFCCP subsequently sent a letter to contractors with open matters stating that the EO 11246 components of the open matters were “closed” and that components related to Section 503 and VEVRAA were “held in abeyance until further notice.” On July 2, 2025, OFCCP announced the cessation of that abeyance through Secretary’s Order 08-2025, meaning the Section 503 and VEVRAA components of compliance reviews or complaint investigations that had remained partially open pending further guidance would be issued complete administrative closures.

OFCCP’s notice about Secretary’s Order 08-2025 explains that by lifting the abeyance, the agency can now “resume activity under … Section 503 and VEVRAA program areas.”

• Complaints: Any complaints brought pursuant to Section 503 or VEVRAA that have been held in abeyance since January 2025 will be immediately resumed, with appropriate parties being “promptly notified.” According to OFCCP, new complaints filed during the abeyance will be processed normally.
• Section 503/VEVRAA Compliance: OFCCP reminded contractors that “Section 503 and VEVRAA, along with their implementing regulations, remain in effect and contractors should continue to otherwise comply with their obligations under the Section 503 and VEVRAA regulatory schemes.” This would include, but is not limited to, preparing AAPs pursuant to Section 503 and VEVRAA. Contractors are not required to certify annual AAP compliance at this time, according to Secretary’s Order 08-2025.
• Compliance Reviews: Due to the entanglement of revoked EO 11246 with Section 503 and VEVRAA in OFCCP’s compliance reviews, the agency decided to exercise its discretion to “administratively close all pending compliance reviews.” OFCCP stated that it intends to promptly send out formal notification of these administrative closures.
• Corporate Scheduling Announcement List (CSAL): OFCCP also noted it would take no further action related to the November 20, 2024, CSAL, a list published by the agency to identify upcoming compliance reviews.

Secretary’s Order 08-2025 also noted that OFCCP’s enforcement moratorium for Veterans Affairs Health Benefits Program providers would remain in effect through May 7, 2027. Reference to the moratorium extension follows OFCCP’s June 11, 2025, Directive 2021-01 Revision 2, “Extending the Scheduling Moratorium for Veterans Affairs Health Benefits Program (VAHBP) Providers.”

Despite budgetary proposals to eliminate OFCCP at the end of the current fiscal year, the agency continues to take actions that make clear its intent to continue enforcing all currently existing contractor obligations applicable to individuals with disabilities and protected veterans. In fact, OFCCP recently proposed rules to modify Section 503 and VEVRAA’s implementing regulations.

For more information, please join us for our upcoming webinar, “The Latest OFCCP News: Proposed Rule Changes as Potential Agency Exit Looms,” which will take place on Wednesday, July 9, 2025, from 2:00 p.m. to 3:00 p.m. EDT. The speakers, Lauren Hicks, Scott Kelly, and Christopher Near, will review the latest changes and what they mean for covered contractors, as well as best practices for continued compliance efforts under EO 14173, Section 503, and VEVRAA. Register here.

Ogletree Deakins’ Government Contracting and Reporting 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 Reporting, Government Contractors, 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’ New Administration Resource Hub.

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