Earlier this year, President Trump rescinded Executive Order 11246 which required affirmative action by certain federal contractors and subcontractors for women and minorities. However, there are statutory affirmative action obligations which are still being enforced and apply to federal government contractors and subcontractors to benefit veterans and individuals with disabilities under the Vietnam Era Veterans Readjustment Assistance Act and the Rehabilitation Act. Like most affirmative action obligations, there are two financial and headcount thresholds for basic affirmative action obligations and formal obligations pursuant to a written plan. These financial thresholds are now updated for inflation every five years and new thresholds became effective as of October 1.
OFCCP
announced last month that the threshold for basic affirmative action obligations
for individuals with disabilities has risen from $15K to $20K. Contractors and subcontractors who do not
have at least one federal contract of at least $50K (or at least 50 employees) now
no longer need to have formal or written affirmative action programs for
individuals with disabilities.
Similarly, the threshold for basic affirmative action obligations
for veterans (which includes, among other things, listing most job openings
with the local unemployment office) has risen from $150K to $200K. Contractors and subcontractors who do not
have at least one federal contract of at least $200K (or at least 50 employees)
now no longer need to have formal or
written affirmative action programs for veterans, which would include
conducting availability analyses, and filing an annual report, etc.
As a part of its ongoing contractor assistance efforts, the Office of Federal Contract Compliance Programs developed a new “Jurisdictional Thresholds” infographic and updated its webpage. The infographic helps employers, employees, and other interested parties easily determine when OFCCP’s Section 503 and VEVRAA regulations apply to contractors doing business with the federal government.
NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.