AAP Enforcement - What You Need to Know!
Section 503 of the Rehabilitation Act of 1973 (which supports your Individuals with Disabilities AAP) and VEVRAA (your Protected Veterans AAP) are important employment initiatives that ensure your company utilizes fair hiring practices and creates an accessible workplace for individuals with disabilities and protected veterans. While completion is required for federal contractors and subcontractors that meet the minimum contract threshold, participation will also help your company build a workplace that values equity and inclusion, and provides the proof that your company practices these values.
With talks of the Office of Federal Contract Compliance Programs (OFCCP) being defunded in the 2026 budget, many questions have been posed as to what this means for federal contractors and subcontractors who have an obligation to complete annual Affirmative Action Plans. Section 503 and VEVRAA are still in effect, regardless of the future of the OFCCP. If your company meets the minimum contract thresholds, you’re still required to take Affirmative Action for Veterans and Individuals with Disabilities, and maintain annual written plans.
UPDATE: NEW CONTRACT THRESHOLDS HAVE BEEN PUBLISHED, EFFECTIVE OCTOBER 2025
What happens if OFCCP is shut down?
If the OFCCP is defunded and the agency terminated, the enforcement of compliance of AAPs will shift as follows:
Section 503 will be enforced by the Equal Employment Opportunity Commission (EEOC). The EEOC is already responsible for enforcing the Americans with Disabilities Act (ADA) so it makes sense to include Section 503 enforcement in their roster of compliance activities.
The enforcement of VEVRAA will move to the Veterans' Employment and Training Service (VETS). This responsibility aligns nicely with their existing work within veteran workforce policy and promoting the recruitment of protected veterans.
What are the consequences of non-compliance?
While it is easy to let these compliance initiatives slide with the enforcement agencies in transition, we cannot emphasize enough that these are legal requirements and failure to remain in compliance can have serious consequences such as loss of contracts and/or debarment from future contracts. We encourage all HR professionals to remain proactive and prioritize this reporting even through this transition period. Once the dust settles, enforcement will come on in full effect and you will want to showcase that you continued to take your compliance initiatives seriously, even through regulatory uncertainty.
If you are interested in learning more about how AAP Compliance can help your organization stay up to date with Federal regulations, contact us to schedule a call with our team today!