Department of Labor Orders End to All EO 11246 Investigative and Enforcement Activity - Section 503 and VEVRAA Reviews and Investigations on Hold

In follow through of President Trump’s Executive Order rescinding Executive Order 11246, the Acting Secretary of Labor issued a Secretary’s Order on January 24, 2025, that officially shut down all United States Department of Labor activity related to Executive Order 11246. The Order was addressed to the entire Department of Labor, and specifically the Office of Federal Contract Compliance Programs (“OFCCP”), Office of Administrative Law Judges (“OALJ”) and Administrative Review Board (“ARB”). Here are the specific orders:
- Cease and desist all investigative and enforcement activity under the rescinded Executive Order 11246 and the regulations promulgated under it. This includes all pending cases, conciliation agreements, investigations, complaints, and any other enforcement-related or investigative activity.
- Notify all regulated parties with impacted open reviews or investigations by January 31, 2025, that the EO 11246 component of the review or investigation has been closed and the Section 503 and VEVRAA components of the review or investigation are being held in abeyance pending further guidance.
Secretary’s Order 03-2025 (Link to Order) (Link to DOL News Release)
The OFCCP also sent out an email communication (Link to OFCCP communication) on January 24, 2025, indicating that:
- “contractors may continue to comply” with the Executive Order 1126 regulatory scheme for 90 days from the January 21, 2025 date of President Trump’s Executive Order.
- OFCCP will cease from (a) “promoting ‘diversity’”, (b) holding contractor and subcontractors responsible for taking “affirmative action”, and (c) “allowing or encouraging Federal contractors or subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.”
- the requirements under the Vietnam Era Veterans’ Readjustment Assistance Act (“VEVRAA”) and Section 503 of the Rehabilitation Act (“Section 503”) are statutory and remain in effect.
Language also was added to the landing page of OFCCP’s website (link):
On January 21, 2025, the White House and President Donald Trump issued an Executive Order: "Ending Illegal Discrimination and Restoring Merit-Based Opportunity", which revoked Executive Order 11246. For 90 days from the date of this order, Federal contractors may continue to comply with the regulatory scheme in effect on January 20, 2025. Requirements under Section 503 of the Rehabilitation Act, 29 U.S.C. 793, and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA), 38 U.S.C. 4212, both enforced by OFCCP, are statutory and remain in effect.
OFCCP is updating the website to bring the information into compliance with the new executive order. Please check back for updates and further guidance. If you have any questions, please submit an online inquiry to the OFCCP Customer Service Helpdesk or call 1-800-397-6251. For TTY-Based Telecommunications Relay Service, dial 7-1-1. To file a Section 503 or VEVRAA complaint, please use the OFCCP complaint form.
Roffman Horvitz will be hosting a webinar at 12:30 p.m. – 1:30 p.m. Eastern on Monday, January 27, 2025, to discuss the implications of the rescission of Executive Order 11246. Here’s the registration link: https://attendee.gotowebinar.com/register/4696660020398540383
Please don’t hesitate to contact your Roffman Horvitz relationship attorney about how your organization should proceed in light of this significant change.