Updated Thresholds for Section 503 and VEVRAA

Last week, the Office of Federal Contract Compliance Programs (OFCCP) released new jurisdictional thresholds for Section 503 of the Rehabilitations Act and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). The basic coverage threshold for Section 503 has increased from $15,000 to $20,000, while the basic coverage threshold for VEVRAA has increased from $150,000 to $200,000.

The Affirmative Action Program (AAP) requirements for VEVRAA were adjusted as well. For VEVRAA, contractors and subcontractors who have at least 50 or more employees and a single contract of $200,000 or more are required to prepare a VEVRAA AAP. The AAP requirements for Section 503 remain the same - contractors and subcontractors with at least 50 or more employees, and a single contract of $50,000 or more must prepare an AAP for individuals with disabilities.

OFCCP announced that these threshold adjustments were made under Section 807 of the Ronald Regan National Defense Authorization Act, which requires the Federal Acquisition Regulation Council (FAR Council) to review dollar amounts in certain federal agency procurement-related laws every 5 years to see if adjustments need to be made due to inflation.

More information on the updated thresholds can be found on OFCCP's website.