outsolve insights

Updated November 25, 2025

If your business holds federal contracts, now is the time for you to review OFCCP's new jurisdictional thresholds for Section 503 and VEVRAA that went into effect on October 1, 2025. The new threshold requirements are listed below for Section 503 and VEVRAA. 

New Jurisdictional Thresholds & AAP Requirements

Section 503: The basic coverage threshold rose from $15,000 to $20,000. AAP requirements continue for contractors and subcontractors with at least 50 employees and a single contract of $50,000 or more.​

VEVRAA: The threshold increased from $150,000 to $200,000. AAP requirements apply to contractors and subcontractors with at least 50 employees and a single federal contract of $200,000 or more.

Do you know what Section 503 of the Rehabilitation Act and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) mean for your organization? These two regulations are key to ensuring fair hiring practices and fostering inclusive workplaces, especially when it comes to IWD and protected veterans. If you're curious as to how these laws might impact your compliance strategy, read on! 

Updated November 25, 2025

If your business holds federal contracts, now is the time for you to review OFCCP's new jurisdictional thresholds for Section 503 and VEVRAA that went into effect on October 1, 2025. The new threshold requirements are listed below for Section 503 and VEVRAA. 

New Jurisdictional Thresholds & AAP Requirements

Section 503: The basic coverage threshold rose from $15,000 to $20,000. AAP requirements continue for contractors and subcontractors with at least 50 employees and a single contract of $50,000 or more.​

VEVRAA: The threshold increased from $150,000 to $200,000. AAP requirements apply to contractors and subcontractors with at least 50 employees and a single federal contract of $200,000 or more.

Although compliance may not be the most exciting part of HR management, it’s still one of the most important, especially if you're a federal contractor. With some of the recent regulatory changes, including the January 2025 rescission of Executive Order 11246, you may be wondering where that leaves your obligations under Section 503 of the Rehabilitation Act and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA). 

HR compliance failures begin in the margins with small errors, missed deadlines, or incomplete reports. But these minor issues can snowball into failed audits, penalties, and lost government contracts. For HR leaders navigating federal reporting requirements, the margin for error is thin, and the consequences are significant. 

“The only certainty right now in the federal government is uncertainty." –Jeremy Mancheski

When it comes to complying with VEVRAA obligations, federal contractors are often stalled by job listings as one of the most common areas of non-compliance during audits. Missteps in this area not only raise red flags but can also invite unwanted scrutiny from compliance officers. We are partnering with DirectEmployers to cover this important topic in our upcoming webinar on September 18.

The Office of Federal Contract Compliance Programs (OFCCP) has released new resources to aid federal contractors and subcontractors in complying with the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA). VEVRAA mandates that these contractors must not discriminate against veterans in their employment practices and must provide equal employment opportunities in recruitment, hiring, promotion, and retention. These resources are aimed at assisting companies comply with their VEVRAA requirements.

The U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) has set a new benchmark for the Vietnam Veterans' Readjustment Assistance Act (VEVRAA) hiring requirements in 2024. This benchmark is crucial for federal contractors and subcontractors to measure their progress in ensuring equal employment opportunities for protected veterans. Let's delve into what this means for contractors and how they can navigate these changes effectively.