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OFCCP Sets New Jurisdictional Thresholds for Section 503 and VEVRAA AAPs

The OFCCP recently announced that the jurisdictional thresholds for Section 503 of the Rehabilitation Act, 29 U.S.C. 793, and the Vietnam Era Veterans’ Readjustment Assistance Act, 38 U.S.C. 4212, increased. The basic coverage threshold for Section 503 increased from $15,000 to $20,000 and the VEVRAA threshold increased from $150,000 to $200,000.  The corresponding Affirmative Action Plan threshold for Section 503, Individuals with Disabilities plans, is now a single contract of at least $50,000, and for VEVRAA it is a single contract of at least $200,000.  These increases resulted from an inflationary adjustment statute.

As a reminder, with the President's recission of Executive Order 11246 in January 2025, there is no longer a federal requirement to implement women and minorities affirmative action plans.  Rather, covered employers are being asked to certify compliance with existing equal rights laws and may also be asked to confirm they do not engage in illegal DEI efforts. 

This update serves as a reminder for employers to evaluate whether or not they are covered by the two remaining OFCCP Affirmative Action Plan requirements, and to review other recruiting and related templates to ensure they are consistent with the recission of EO 11246 and focus on equal employment opportunity.

Updated Jurisdictional Thresholds for Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act

 

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