The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has finalized changes to its regulations under Section 503 of the Rehabilitation Act of 1973, eliminating several longstanding disability-related affirmative action requirements for federal contractors. The final rule is scheduled for publication in the Federal Register on Aug. 21, 2026.

Under the Section 503 final rule, contractors will no longer be required to invite applicants and employees to self-identify as individuals with disabilities, collect related disability data, or measure their workforce against OFCCP’s seven percent utilization goal.

The Section 503 final rule is part of a broader deregulatory package that also rescinds regulations implementing Executive Order 11246 and modifies regulations implementing the Vietnam Era Veterans’ Readjustment Assistance Act.

Key Section 503 Obligations Remain

Section 503 itself remains in effect, including the requirement to annually prepare a written Affirmative Action Plan. Although the final rule removes much of the data-driven compliance framework, covered contractors must continue to take affirmative action to employ and advance qualified individuals with disabilities and comply with Section 503’s nondiscrimination requirements.

Contractors also must continue to assess the effectiveness of their outreach and recruitment efforts on behalf of individuals with disabilities. They will no longer, however, be required to collect or evaluate disability data to make that assessment.

Jackson Lewis attorneys are evaluating the full impact of the final rule and additional guidance will be forthcoming soon. In the meantime, if you have questions about OFCCP’s final rule package and how it could affect your organization, contact a Jackson Lewis attorney to discuss.

The annual VETS-4212 filing season is underway. The Department of Labor’s Veterans’ Employment and Training Service (VETS) began accepting reports on Aug. 1, 2026, and covered federal contractors and subcontractors must submit their reports by Sept. 30, 2026.

VETS-4212 Reporting at a Glance

Under the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, covered federal contractors and subcontractors must report annually on their employment of protected veterans. Form VETS-4212 captures data on the number of protected veterans in a contractor’s workforce and among its new hires.

Who Must File?

Generally, the reporting requirement applies to federal contractors and subcontractors that have received a covered federal contract or subcontract valued at $200,000 or more, regardless of employee count. The Federal Acquisition Regulation reporting threshold increased from $150,000 to $200,000 effective Oct. 1, 2025, following an inflation adjustment to acquisition-related thresholds, according to VETS guidance.

Covered contracts and subcontracts may be with any federal department or agency. These contracts may involve the procurement of personal property or a range of non-personal services, such as utility, construction, transportation, research, insurance, and fund depository services.

Preparing for the Deadline

With the Sept. 30, 2026, deadline approaching, federal contractors and subcontractors should review their agreements to confirm whether filing is required and assemble the necessary workforce and hiring data.

Covered contractors and subcontractors may file their reports electronically through the Department of Labor’s VETS-4212 Reporting Application, which is the agency’s preferred submission method. Importantly, the agency does not accept requests for filing extensions.

If you have questions about your organization’s VETS-4212 reporting obligations, contact a Jackson Lewis attorney.

On July 16, 2026, the Office of Management and Budget (OMB) approved a three-year extension of the Office of Federal Contract Compliance Programs’ (OFCCP) information collection requirements under Section 503 of the Rehabilitation Act of 1973.

The approval covers the CC-305 Voluntary Self-Identification of Disability form and related recordkeeping requirements for federal contractors. It continues the current collection without change through July 31, 2029.

OMB’s approval comes as the OFCCP’s proposed revisions to its Section 503 regulations remain pending. In July 2025, the agency proposed scaling back several federal contractor obligations related to individuals with disabilities, including eliminating the disability utilization goal and related data analysis requirements. The OFCCP later sought comments on withdrawing the voluntary self-identification form and associated information collection requirements.

The OFCCP has not issued a final rule or otherwise announced how it intends to proceed with its proposed changes. The extension does not resolve the future of the proposed regulations or prevent the OFCCP from changing the requirements before July 2029. It may, however, signal that the agency intends to preserve the existing data collection framework for now.

Federal contractors should continue using the CC-305 form and maintaining the records required by the current Section 503 regulations unless and until the OFCCP issues further guidance or finalizes regulatory changes.

If you have questions about the recent extension and how it may affect your organization, contact a Jackson Lewis attorney.

The Department of Labor (DOL) has issued a final rule rescinding portions of its Title VI regulations that addressed disparate impact liability for recipients of federal financial assistance. The rule took effect July 2, 2026.

Title VI of the Civil Rights Act of 1964 prohibits discrimination based on race, color, and national origin in programs and activities receiving federal financial assistance. The DOL’s recent final rule amends its Title VI regulations to remove provisions the agency says extended beyond intentional discrimination and imposed obligations based on unintentional disparate impact.

Among other changes, the rule removes language prohibiting recipients from using criteria or methods of administration that have the effect of subjecting individuals to discrimination. It also removes references to “effect” in provisions addressing site or facility selection, rescinds certain affirmative action language, and revises provisions related to employment practices in federally assisted programs.

The DOL said these amendments are intended to align its Title VI regulations with the statute’s original public meaning, reduce constitutional and other legal concerns, lower compliance costs, and provide greater clarity for recipients of federal financial assistance. The agency also noted the rule follows broader federal efforts, including Executive Order 14281, to eliminate the use of disparate impact liability in certain civil rights enforcement contexts.

For federal contractors and other entities that receive or administer federal funds, the rule narrows the DOL’s Title VI regulations but does not eliminate all disparate impact risks. Other federal, state, and local laws may impose separate nondiscrimination obligations, and some may continue to recognize disparate impact theories. Employers should review federally funded programs, grant-related assurances, related policies, and neutral employment practices to ensure they remain job-related and consistent with equal employment opportunity principles.

If you have questions about the DOL’s Title VI final rule and how it could affect your organization, contact a Jackson Lewis attorney to discuss.

Nineteen states and the District of Columbia have filed a lawsuit challenging the federal government’s rollout of Executive Order (EO) 14398, “Addressing DEI Discrimination by Federal Contractors.” The coalition of plaintiff states challenges the EO and federal agency actions taken to implement what they allege are unclear requirements across new and existing contracts. Filed on June 10, 2026, the complaint names the United States, the Federal Acquisition Regulatory Council (FAR Council), and numerous federal agencies and agency officials as defendants.

EO 14398, issued March 26, 2026, directs agencies to add a new clause to federal contracts and “contract-like instruments,” including subcontracts. The clause prohibits contractors from engaging in “racially discriminatory DEI activities,” defined as disparate treatment based on race or ethnicity in recruitment, employment, contracting, program participation, or allocation or deployment of an entity’s resources. It also requires contractors to include flow-down clauses in subcontracts, report known or reasonably knowable subcontractor conduct that may violate the clause, and acknowledge compliance as material to payment decisions for purposes of the False Claims Act.

The plaintiffs allege that the contract term is unclear and does not provide sufficient explanation of what it prohibits. The definition of “racially discriminatory DEI activities” echoes existing prohibitions but neither the EO nor implementing actions explain how the new term differs from existing law, EO 11246 (in effect for 60 years), or EO 14173 (issued in January 2025). They allege the lack of clarity also extends to contractors’ obligation to report subcontractor conduct that “may” violate the clause. The states also challenge the agencies’ treatment of prior federal contractor rules, alleging the agencies did not adequately address the shift from requirements that had applied under the now-rescinded EO 11246.

The lawsuit also raises procedural and statutory challenges under the Administrative Procedure Act and federal procurement laws, alleging the FAR Council imposed contract terms with significant external effects without following required notice-and-comment procedures. In support, the complaint points to an April 17, 2026, implementation memorandum in which the FAR Council directed agencies to use the clause in new contracts beginning April 24, 2026, update class deviations concerning the implementation of the clause by April 27, 2026, and make every effort to add the clause to existing contracts by July 24, 2026.

The states claim the new terms adversely impact them because they regularly perform federal contracts and subcontracts through state agencies and instrumentalities, including universities, with collective contracts worth billions of dollars annually. In their view, the unclear terms impose significant compliance challenges, costs, and burdens.

The case, which was filed in the U.S. District Court for the District of Maryland, remains pending. It is also not the only pending litigation involving EO 14398. In the higher education context, plaintiffs including the National Association of Diversity Officers in Higher Education filed a separate lawsuit in April 2026 challenging the EO on constitutional and ultra vires grounds.

If you have questions about recent federal contractor developments and requirements, contact an attorney at Jackson Lewis P.C.

Government contractors and recipients of federal financial assistance are once again seeing agencies revisit guidance documents as part of broader efforts to reduce administrative requirements for regulated entities. The Federal Transit Administration (FTA) has withdrawn Circular 4704.1A, its Equal Employment Opportunity (EEO) requirements and guidelines for recipients of FTA financial assistance. The withdrawal took effect May 20, 2026.

The now-withdrawn guidance applied to certain FTA applicants, recipients, subrecipients, and contractors meeting employee and funding thresholds. Those with 100 or more transit-related employees had to implement a full EEO program; those with 50-99 transit-related employees had to prepare and maintain an abbreviated EEO program. Direct recipients and state departments of transportation meeting the full EEO program threshold had to submit updated EEO programs to FTA every four years.

The FTA’s withdrawal removes Circular 4704.1A as an FTA guidance document, including its FTA-specific EEO program guidance and related submission obligations. The FTA asserts that revoking the circular will reduce administrative burdens by ending the requirement that recipients submit EEO documentation to the agency. The agency also notes that the guidance and requirements were redundant with existing regulations that the Equal Employment Opportunity Commission, the Department of Labor, the Department of Justice, and the FTA enforce. As policy background, the FTA cites previous Executive Orders directing agencies to reduce unnecessary regulatory burdens and streamline government operations.

The change does not eliminate workplace nondiscrimination requirements. The FTA made clear that withdrawing the circular does not affect recipients’ obligations under Titles VI and VII of the Civil Rights Act of 1964, the Genetic Information Nondiscrimination Act, Department of Transportation regulations, and other applicable federal civil rights laws. Recipients also remain subject to potential consequences for noncompliance, such as exclusion from federally assisted programs or activities.

For government contractors, public-sector employers, and transit agencies receiving FTA financial assistance, the practical message is narrow but important: FTA has withdrawn its circular-specific EEO program guidance and reporting framework, but the underlying federal civil rights and nondiscrimination laws remain in place. Employers should assess whether existing EEO policies, training, complaint procedures, and records remain sufficient to demonstrate compliance if another enforcement agency reviews them.

If you have questions about FTA’s recent actions and how they could affect your organization, contact an attorney at Jackson Lewis P.C.

Government contractors continue to navigate a shifting labor and employment landscape, with new and ongoing developments affecting compliance obligations, workplace policies, and enforcement priorities.

To help contractors address these challenges, Jackson Lewis P.C. will host its Government Contractor Employment Law Symposium on June 4, 2026, in Reston, Virginia. We welcome you to join our dynamic team of attorneys for a full-day program designed to equip federal contractors with actionable insights, real-world strategies, and forward-looking guidance. The program is geared toward executives, in-house counsel, and HR professionals, and focuses on the labor and employment issues most relevant to government contractors. Topics will include:

  • Artificial Intelligence in Government Contracting
  • OFCCP, Affirmative Action and the New DEI Certification Executive Orders
  • Workplace Discrimination and the False Claims Act: A New Frontier
  • DEI Under Scrutiny: Legal Limits in the Current Enforcement Environment
  • From Executive Orders to Enforcement: The GC Perspective at Government Contractors
  • Internal Whistleblower Investigations and Avoiding Retaliation Claims
  • USERRA Enforcement and Litigation Trends: Practical Guidance for Contractors
  • Hot Topics in Employment Law for Government Contractors
  • Cybersecurity and Privacy Obligations for Government Contractors
  • Immigration: Visa and Worksite Enforcement Update

Additional information about the symposium, including registration details and the program agenda, is available here. We look forward to seeing you there!

On May 14, 2026, the U.S. Equal Employment Opportunity Commission (EEOC) submitted a proposal to the Office of Information and Regulatory Affairs (OIRA) concerning federal equal employment opportunity reporting and recordkeeping requirements.

According to the OIRA entry, the proposal concerns the rescission of EEO-1, EEO-2, EEO-3, EEO-4, EEO-5, and reporting requirements under Title VII, the ADA, GINA, and the PWFA.

Currently, the EEO-1 Component 1 Report requires certain private employers and federal contractors to submit annual workforce demographic data categorized by job category, race, ethnicity, and sex.

At this stage, the EEOC has not issued the text of any proposed regulatory changes, and details regarding the scope or effect of the proposal are not yet available. Employers should not assume any existing reporting or recordkeeping obligations have changed unless and until the EEOC issues additional guidance or completes further administrative action. Employers also may remain subject to other federal, state, and local workforce reporting or recordkeeping obligations.

This remains an evolving situation, and attorneys at Jackson Lewis P.C. are continuing to monitor developments.

If you have questions regarding EEO reporting or workforce recordkeeping obligations, contact a Jackson Lewis attorney.

Kenneth J. Wolfe is the new director of the Office of Federal Contract Compliance Programs (OFCCP), according to the agency’s website. He assumes the role after Director Ashley Romanias recently stepped down.

Director Wolfe also serves as the director of the Center for Faith at the U.S. Department of Labor, where he leads initiatives to promote religious freedom in the workplace and expand opportunities for faith organizations to participate in the grant process.

Director Wolfe has worked in public service for much of his career. He spent 23 years at the U.S. Department of Health and Human Services, serving as spokesperson for the Administration for Children and Families and managing public affairs for the human services side of the agency. Director Wolfe has also written editorials in his personal capacity and has prior experience as a news radio anchor and congressional staffer.

This is a developing story, and attorneys at Jackson Lewis P.C. will continue to monitor the situation as more information becomes available.

If you have questions about recent developments at the OFCCP, contact a Jackson Lewis attorney.

Federal contractors have new insight into how the government may implement and enforce Executive Order (EO) 14398, which aims to prevent federal contractors and subcontractors from engaging in discriminatory diversity, equity and inclusion (DEI) activities related to race and ethnicity. Recent Federal Acquisition Regulatory (FAR) Council guidance and its request for emergency approval for a new information collection form shed more light on what contractors may expect.

FAR 52.222-90 and FAR Council Guidance

EO 14398 directed the FAR Council to issue a deviation and interim guidance on how to implement the contract clause outlined in the EO. In its April 17, 2026, memorandum, the FAR Council provided guidance to contracting agencies on the implementation of Federal Acquisition Regulation Clause 52.222-90 (FAR 52.222-90), which closely follows the EO.

FAR 52.222-90 requires federal contractors to certify they will not engage in any racially discriminatory DEI activities, defined as “disparate treatment based on race or ethnicity” in recruitment, employment, contracting, program participation, or allocation or deployment of resources. The requirements also flow down to covered subcontracts. Contractors must report subcontractor violations and notify the contracting officer if litigation with a subcontractor puts the clause’s validity at issue.

The FAR Council’s recent memorandum instructs agencies to update their class deviations, start using FAR 52.222-90 in covered solicitations and contracts beginning April 24, 2026, and make every effort to bilaterally modify covered existing contracts to include the clause by July 24, 2026. Contracting officers have discretion to modify contracts with final expiration dates no later than December 31, 2026.

There is also new information about which contracts are covered by FAR 52.222-90, with the guidance indicating it applies to solicitations and contracts above the micro-purchase threshold, currently $15,000, including those for commercial products and commercial services, except where the place of delivery or performance is outside the United States.

Emergency Information Collection Request

At nearly the same time as issuing guidance, the FAR Council requested emergency Office of Management and Budget (OMB) approval under the Paperwork Reduction Act for a new information collection request (ICR) tied to implementing FAR 52.222-90.

In the FAR Council’s supporting ICR statement, it explains that, as required by EO 14398, the collection would allow contracting officers to require contractors to furnish information and reports, including access to books, records, and accounts, for purposes of assessing compliance with the clause. The supporting materials estimate over 6,000 contractors may be subject to requests to furnish information and records pursuant to a contracting agency’s request and contractors will spend approximately one hour responding to the principal information request.

Next Steps

While there continue to be unknowns with how EO 14398 will be enforced, these materials give contractors a better sense of both the proposed contract requirements and potential compliance audits by contracting agencies. Additional guidance or rulemaking may answer questions that the FAR Council’s current direction leaves open. Attorneys at Jackson Lewis P.C. continue to monitor the situation as it develops.

If you have questions about how EO 14398 could affect your organization, contact a Jackson Lewis attorney.