The recent revocation of Executive Order 11246 introduces new challenges for federal contractors, particularly in affirmative action and equal employment opportunity requirements. While certain provisions related to race, color, religion, sex, sexual orientation, gender identity, or national origin have been rescinded, critical statutory obligations under Section 503 of the Rehabilitation Act and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) remain unchanged. HR professionals, legal teams, and compliance officers must adapt quickly to this evolving regulatory environment to uphold federal disability and veterans' employment requirements.
Despite the changes to Executive Order 11246, requirements under Section 503 and VEVRAA remain firmly in place:
The Office of Federal Contract Compliance Programs (OFCCP) continues to enforce these obligations, meaning that federal contractors must consistently develop, update, and maintain affirmative action plans (AAPs) for these protected groups.
Organizations that hold federal contracts must reassess their policies and strategies to ensure ongoing compliance:
A notable case involving the University of Pittsburgh Medical Center (UPMC) Health Plan illustrates the importance of compliance. UPMC contracted with the Office of Personnel Management (OPM) to provide health services to federal employees, with three hospitals delivering care under this plan. When the OFCCP initiated compliance reviews, the hospitals contested their status as subcontractors. However, the Administrative Review Board (ARB) ruled in favor of the OFCCP, affirming that these hospitals played a crucial role in fulfilling the federal contract and were therefore subject to compliance requirements. Read the full case study here.
Failing to adjust to these regulatory changes can lead to serious risks for federal contractors:
Federal contractors can take several steps to strengthen their compliance efforts:
Managing workplace accommodations and compliance can be complex, but automation simplifies the process. Disclo’s next-generation platform enables HR teams to efficiently manage workplace accommodations, ensuring operational consistency and regulatory adherence. By integrating Disclo, federal contractors can enhance tracking, maintain compliance, and foster a more inclusive workplace.
For further insights into these regulatory changes, explore the following resources:
Federal contractors that adopt proactive, technology-driven compliance strategies can mitigate risk, optimize efficiency, and maintain a strong commitment to diversity and inclusion.
The recent revocation of Executive Order 11246 introduces new challenges for federal contractors, particularly in affirmative action and equal employment opportunity requirements. While certain provisions related to race, color, religion, sex, sexual orientation, gender identity, or national origin have been rescinded, critical statutory obligations under Section 503 of the Rehabilitation Act and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) remain unchanged. HR professionals, legal teams, and compliance officers must adapt quickly to this evolving regulatory environment to uphold federal disability and veterans' employment requirements.
The recent revocation of Executive Order 11246 introduces new challenges for federal contractors, particularly in affirmative action and equal employment opportunity requirements. While certain provisions related to race, color, religion, sex, sexual orientation, gender identity, or national origin have been rescinded, critical statutory obligations under Section 503 of the Rehabilitation Act and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) remain unchanged. HR professionals, legal teams, and compliance officers must adapt quickly to this evolving regulatory environment to uphold federal disability and veterans' employment requirements.
Despite the changes to Executive Order 11246, requirements under Section 503 and VEVRAA remain firmly in place:
The Office of Federal Contract Compliance Programs (OFCCP) continues to enforce these obligations, meaning that federal contractors must consistently develop, update, and maintain affirmative action plans (AAPs) for these protected groups.
Organizations that hold federal contracts must reassess their policies and strategies to ensure ongoing compliance:
A notable case involving the University of Pittsburgh Medical Center (UPMC) Health Plan illustrates the importance of compliance. UPMC contracted with the Office of Personnel Management (OPM) to provide health services to federal employees, with three hospitals delivering care under this plan. When the OFCCP initiated compliance reviews, the hospitals contested their status as subcontractors. However, the Administrative Review Board (ARB) ruled in favor of the OFCCP, affirming that these hospitals played a crucial role in fulfilling the federal contract and were therefore subject to compliance requirements. Read the full case study here.
Failing to adjust to these regulatory changes can lead to serious risks for federal contractors:
Federal contractors can take several steps to strengthen their compliance efforts:
Managing workplace accommodations and compliance can be complex, but automation simplifies the process. Disclo’s next-generation platform enables HR teams to efficiently manage workplace accommodations, ensuring operational consistency and regulatory adherence. By integrating Disclo, federal contractors can enhance tracking, maintain compliance, and foster a more inclusive workplace.
For further insights into these regulatory changes, explore the following resources:
Federal contractors that adopt proactive, technology-driven compliance strategies can mitigate risk, optimize efficiency, and maintain a strong commitment to diversity and inclusion.
