Affirmative action requirements for federal contractors were not fully established until 1978, when the U.S. Department of Labor created the Office of Federal Contract Compliance Programs (OFCCP) and issued the regulations contained in Executive Order 11246’s 41 CFR Part 60 and related provisions.

With President Trump's issuance of Executive Order 14173 on January 21, 2025, revoking Executive Order 11246, and the Department of Labor's final regulations published on August 21, 2026, federal contractor affirmative action requirements for women and minorities will be eliminated effective October 26, 2026.

The U.S. Department of Labor (DOL) said it had to rescind the regulations "because they can no longer be lawfully maintained following the revocation of EO 11246."   The DOL also in the final rule stated that “substantial portions of the regulatory framework are unconstitutional, inconsistent with federal civil rights statutes, and unsupported by any clear grant of statutory authority provides additional grounds, which on their own support rescission.”  For example, the affirmative action requirements "extend beyond the removal of barriers to equal employment opportunity" and instead create a system that requires contractors to engage in race-conscious employment practices and to classify workers by race and sex, in violation of Title VII, the DOL said.

However, the affirmative action requirements for veterans under the Vietnam Era Veteran Readjustment Act (VEVRAA, Section 4212) and Section 503 of the Rehabilitation Act are still in force, albeit some changes.  The final rules eliminate any reference to EO 11246. Section 503 and 4212 final rules will take effect September 21, 2026.

With respect to the Section 503 requirements, the DOL eliminated the 7% goal as well as the requirements to collect disability information for pre-hire  The pre-offer questioning per the DOL violates the Americans with Disabilities Act (ADA) per the DOL. Specifically with respect to job applicants, the DOL stated that the ADA’s text is clear: “a covered entity shall not …make inquiries of a job applicant as to whether such applicant is an individual with a disability.” 42 U.S.C. 12112(d)(2)(A).  Further, the DOL stated that contractors faced a non-speculative risk of enforcement if they did not conduct utilization analyses, which as a practical matter required employer-initiated inquiries into applicants’ and employees’ disability status.

For post-hire, the DOL pointed out that under the ADA a “covered entity shall not make inquiries of an employee as to whether such employee is an individual with a disability ... unless such ... inquiry is shown to be job-related and consistent with business necessity.” 42 U.S.C. 12112(d)(4)(A).  In fact, the DOL again pointed out that contractors complied with Section 503’s statutory requirements for affirmative action prior to the addition of the utilization goal in the 2013 rule, and they will be able to do so after DOL’s rescission of this requirement.

Further, the DOL stated that it is not prohibiting contractors from voluntarily exercising their own legal and business judgment about making disability status inquiries at the post-offer stage, if they believe such inquiries comply with the ADA and its implementing regulations. The DOL is, however, no longer requiring that contractors conduct such inquiries as part of their affirmative action obligations under Section 503. However, Form CC-305, which is the form the DOL had prescribed for asking disability status, is no longer valid.

Contractors are still required to ensure that the organization does meet with 503 and ADA requirements such as conducting skills-based barrier analysis and remediation in which the contractor reviews job descriptions, vacancies, job requirements, and physical/mental standards to eliminate requirements and tasks that are not essential to performing the job (e.g., lifting, standing, or driving a car). A contractor could also conduct structured outreach and recruitment by partnering with disability employment organizations (e.g., vocational rehabilitation agencies, centers for independent living, and disability service providers) to share vacancies and job fair opportunities. Next, contractors can leverage accessibility and usability for hiring systems by ensuring that online applications, assessments, and hiring platforms are accessible to applicants using screen readers, voice-to-text, and other assistive technologies.

The upshot for federal contractors is that the EO 11246 AAP is no longer required or legal.  Section 4212 and 503 AAPs are still required but revert to the pre 2014 approach. The EO module for applicants that asked for veteran and disability status should be taken down and any request for disability status post-off/hire, should be conducted, if at all, under attorney advice and counsel.  The veteran post-off/hire should be continued because there are reporting requirements by statute for the Veteran 4212 reporting of new veteran hires and veterans in the workforce.  In addition, there are award programs that honor employers who hire veterans. 

As a note, the Section 503 non-discrimination coverage threshold rose from $15,000 to $20,000 to reflect the inflation adjustment that took effect on October 1, 2025, and 42==Section 4212 is now $200,000.

As a reminder, EEO-1 reports are also likely dead in the water. 

The future of affirmative action and EEO-1 reporting requirements will likely depend on the outcome of the 2028 presidential election. If a Democratic administration takes office, these requirements could be reinstated. However, due to the time required for rulemaking and regulatory implementation, any new requirements would likely not take effect until around 2030.

Source: Law360 8/20/26, Jackson Lewis 8/20/26