We have an IMPORTANT UPDATE about the status of OFCCP’s enforcement activity under Executive Order 11246, Section 503 and VEVRAA, in light of President Trump’s decision last week to revoke EO 11246.
Late Friday, the Acting Labor Secretary issued a directive to OFCCP to “immediately cease” all enforcement activity under EO 11246. For those not familiar with all the regulatory citations, the regulations under EO 11246 required contractors to prepare affirmative action plans for minorities and women. The directive applies to all pending audits, open compliance reviews, complaints and conciliation agreements related to EO 11246. The directive means that any open EO 11246 enforcement reviews are halted immediately and that pending audits under EO 11246 will not be scheduled.
The directive also indicates that any Section 503 (individuals with disabilities) or VEVRAA (protected veteran) enforcement activity should be held in “abeyance” pending further guidance. This means that OFCCP also must temporarily suspend its review of compliance with Section 503 and VEVRAA until the agency receives further guidance from the Acting Secretary. It is important to note that this directive does NOT mean that contractors should stop complying with Section 503 and VEVRAA – these obligations are statutory in nature and remain in effect, even though OFCCP’s review of a contractor’s compliance has been temporarily suspended.
OFCCP is to notify all impacted contractors by January 31, 2025. The Secretary’s communication is available here.
Please stay tuned to our blog, as Berkshire will share more information about the impact of the EO’s revocation as we learn of it.