The Federal Government Has Reopened: What’s Next for Federal Contractors

As non-essential government offices reopen, human resources, EEO, and compliance professionals in government contractor workplaces may want to generate a few priority to-do lists.   

We’ve identified some re-opening things to watch from the equal opportunity, labor, and immigration agencies, as well as offer some general thoughts on procurement for federal contractors. 

Equal Employment Opportunity Commission (EEOC) 

The EEOC has a quorum, which means that guidance issued under the Biden administration is likely to come under scrutiny, particularly the Pregnant Workers Fairness Act and anti-harassment guidance that covered LGBTQ+ employees.  

For organizations that previously adapted anti-harassment, nondiscrimination, benefit, and leave policies to conform to EEOC guidance under the Pregnant Workers Fairness Act, those policies ought to be identified and catalogued because they likely will have to be re-adapted again. If you are contemplating a handbook or policy review soon, any EEOC guidance is going to need to factor into that update. 

The EEOC also is expected to take a future position on LGBTQ+ anti-harassment guidance that factors in greater deference to religious beliefs. It might be a good time to schedule a training session with employment counsel to refresh your understanding of the intersection between EEO and religious accommodation in the workplace.  

Finally, earlier this year, the EEOC issued several memoranda and statements regarding lawful and unlawful DEI, but procedurally, those documents didn’t have as much authority as if the EEOC had issued official policy guidance.  With a restored quorum, organizations should ensure that they consult those pronouncements and keep an eye out for officially promulgated policy shifts. EEOC is expected to investigate allegations of unlawful DEI as part of its enforcement agenda. Protect your organization by conducting a proactive DEI audit to ensure your policies and procedures contain no unlawful DEI. 

Department of Labor 

1. Office of Federal Contract Compliance Programs (OFCCP) 

The OFCCP’s budget for FY26 has not been voted on. The Department of Labor’s budget was included in last week’s continuing resolution that reopened the government, but the resolution merely delays things. It expires on January 30, 2026 and it remains to be seen if Congress will be able to pass a new budget for FY26. The other possibilities are yet another government shutdown or an extended continuing resolution that effectively extends the FY25 budget. 

So, OFCCP still exists and is operating in the meantime. There are four regulatory items currently pending before OFCCP: 

1. Proposed rescission of Executive Order 11246 regulations 
2. Proposed modification of the disability regulations implementing Section 503 of the Rehabilitation Act 
3. Proposed modification of the protected veteran regulations implementing the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) 
4. The OFCCP’s official disability self-identification form, also known as the CC-305 form. 

The comment deadline for the first three were due before the government shut down, and the comment deadline for the OFCCP’s disability self-identification form was October 24, during the shutdown. 

The actual comments regarding the disability self-identification form were unavailable during the shutdown—government contractors could see only that twenty-four comments had been submitted. The submitted comments regarding the disability self-identification form now are available for review. Most umbrella organizations or law firms representing employers urged OFCCP not to eliminate the disability self-id form because it’s helpful to employers when preparing the still-required annual written assessment of the effectiveness of outreach initiatives. 

A summary of the comments submitted in response to the other three regulatory items can be found in a prior OutSolve blog. 

With OFCCP’s national office and policy division operating with a smaller staff, it’s not clear what the OFCCP’s timeline will be to digest comments and finalize its position. 

2. Occupational Safety and Health Administration (OSHA) 

During the shutdown, OSHA was operating with a little more than a quarter of its staff.  Now that the shutdown has ended, not only has DOL brought back OSHA employees who were furloughed, but we also understand that DOL re-assigned several of the former OFCCP field staff to OSHA positions. As inspections resume, you may want to probe the tenure and knowledge proficiency of the assigned inspector, so you know if they are legacy OSHA or from somewhere else within the Department of Labor or federal government. 

There now is an OSHA Administrator in place. David Keeling was confirmed on October 7, during the shutdown.   

The Biden Administration proposed a rule regarding heat-related injury and illness prevention and received nearly 25,000 comments. With an OSHA Administrator now in place, OSHA ought to be reviewing the comments submitted during the rulemaking process.  It is unclear whether OSHA in the Trump Administration will change the proposal or eliminate it. 

There are many other rescissions of OSHA regulations that were announced in the Unified Agenda of Regulatory and Deregulatory Actions published on September 4, 2025, and we would expect these to advance, as well.  

3. Wage and Hour Division (WHD) 

Wage and Hour has its new administrator, Andrew Rogers. The Senate confirmed him during the shutdown, and he was just sworn in. 

There are several initiatives on WHD’s regulatory agenda that should start to move forward:   

• Joint employer status: under what circumstances will businesses be held liable as joint employers 
• Employee or Independent Contractor Classification under the Fair Labor Standards Act (FLSA) 
• Defining and delimiting overtime exemptions for executive, administrative, professional, outside sales, and computer employees 
• (Officially) Rescinding regulations increasing the minimum wage for Federal contractors (because President Trump rescinded the Executive Order 14026 issued in 2021, and the DOL’s website states that it’s no longer enforcing the regulations, but they’re still technically “on the books.”) 

Immigration Processes 

Although several immigration-related processes resumed during the shutdown, including E-Verify which resumed operations on October 8, employers would be well-advised to inventory any other immigration-related processes that were paused, including H-1B transfers, PERM petitions, E-3 visas for Australian citizens working in specialty occupations, and change of status cases.  

• The DOL systems (FLAG and iCERT) for processing LCAs (essential for H-1B filings) were shut down, meaning employers could not obtain necessary certifications to file in a timely manner. 
• U.S. Citizenship and Immigration Services (USCIS) issued guidance confirming that late H-1B and other related I-129 filings might be excused due to the inability to obtain an LCA during the shutdown. Employers must document that the delay was due to these "extraordinary circumstances" beyond their control. 
• The Office of Foreign Labor Certification (OFLC) automatically extended the due dates for responses to Requests for Information (RFI), Notices of Deficiencies, and other correspondence with deadlines between October 1, 2025, and November 2, 2025. These deadlines were extended by 33 calendar days. 

Employers and individuals impacted were strongly advised to maintain documentation demonstrating their efforts to file and the unavailability of the relevant DOL systems.  

Finally, if employees or new hires were waiting for visa processing appointments, check with counsel on updates regarding backlogs and schedule shifts. 

Implementation of Executive Order 14173 

We still do not know when the Interim Final Rule implementing Executive Order 14173 (“Ending Illegal Discrimination and Restoring Merit-Based Opportunity;” aka the anti-DEI Executive Order), will be implemented. Procurement officers nonetheless may resume asking for certifications under Executive Order 14173 as a condition of receiving federal monies. Contractor employers should ensure that they have conducted a thorough review of their equal employment opportunity and diversity and inclusion programs so that they can attest truthfully to the certification. 

Next Steps for Your Organization 

If you are still unclear about certain guidelines or requirements, reach out to OutSolve for expert consultation and assistance in federal contractor requirements, Form I-9 compliance, compensation best practices, and more.