The proposed budgets are out for the fiscal year 2026 and it isn’t looking good for the Office of Federal Contract Compliance Programs (OFCCP). The budget plans of the U.S. Department of Labor’s (DOL) aim to fully eliminate the OFCCP beginning October 1, 2025.
This elimination is in line with recent Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, that rescinded requirements for affirmative action for federal contractors back in January 2025. OFCCP has been the governing agency for these requirements, and without that authority, its purpose has been significantly diminished.
OFCCP was also responsible for Section 503 of the Rehabilitation Act and the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA). Under the new proposed budget, Section 503 enforcement will go to the Equal Employment Opportunity Commission (EEOC) and VEVRAA enforcement will go to Veterans’ Employment and Training Service (VETS). According to the proposed budget, these changes will “ensure consistent oversight while shrinking the Federal bureaucracy.”
What Does This Mean for Your Organization
Compliance with Section 503 and VEVRAA is not going away. Don’t stop data collection for either of these important requirements and continue preparing your plans as you have been. OutSolve consultants are available to help with both of these requirements.
Continuing with the importance of data collection, EEO-1 Reports are required this year. With the deadline of June 24, 2025, there isn’t much time left to prepare and file these reports. Our experienced consultants can help take this requirement off your plate. Reach out today.
Subscribe to our weekly newsletter to get updates like these delivered right to your Inbox each week.
Founded in 1998, OutSolve has evolved into a premier compliance-driven HR advisory firm, leveraging deep expertise to simplify complex regulatory landscapes for businesses of all sizes. With a comprehensive suite of solutions encompassing HR compliance, workforce analytics, and risk mitigation consulting, OutSolve empowers organizations to navigate the intricate world of employment regulations with confidence.
Weekly OutLook
Featured Posts
Executive Order 14398 Pertaining to DEI Discrimination by Federal Contractors
outRageous HR: The Future of HR Compliance is HR Compliance as a Service
Related Posts
Features to Look for in an I-9 Vendor
Choosing an I-9 vendor requires more than a checklist of features. The best vendors pair strong technology with reliable compliance support so your...
outRageous HR: What Happens Inside a Pay Equity Audit (And Why Most Companies Wait Too Long)
Not long ago, many companies viewed pay equity audits as a defensive measure to avoid legal penalties or prepare for a rare regulatory inspection....
Jeremy Mancheski Named Most Admired CEO
OutSolve Founder and CEO, Jeremy Mancheski, has been officially named a 2026 Most Admired CEO by New Orleans City Business. This prestigious...