Federal Contractors Still Have Rehabilitation Act and Covered Veterans Affirmative Action Program Obligations

Despite President Trump prohibiting all Diversity, Equity & Inclusion rules, along with revoking President Johnson’s 1965 E.O. 11246 that was the grandfather of federal contractor affirmative action requirements, contractors are still obligated to provide affirmative action for persons with disabilities and covered veterans

Enforced by the Office of Federal Contract Compliance Programs (OFCCP), the historic and now revised (mostly gutted) affirmative action requirements apply to first tier government contractors and subcontractors completing first tier contractor work. Certain banks and financial institutions are included.

Even after President Trump’s January 21, 2025 Executive Order did away with affirmative action protections for women and minorities, Rehabilitation Act (for persons with disabilities) and Vietnam Era Veterans’ Readjustment Assistance Act protections for veterans are still in place.

Contractors should not completely dismantle Affirmative Action Programs (AAPs) for persons with disabilities and covered veterans. But: According to Acting Secretary of Labor Vincent N. Micone III, there is a pause on OFCCP enforcement and investigations. Further OFCCP guidance is expected given the quickly evolving legal landscape.

President Trump’s new Executive Order [available here] is clear. The Order "does not apply to lawful Federal or private-sector employment and contracting preferences for veterans of the U.S. armed forces or [blind] persons protected by the Randolph-Sheppard Act, 20 U.S.C. 107, et seq”. Similarly, pursuant to the Rehabilitation Act, § 503, the new Order does not apply to workers with disabilities. Less clear is how the OFCCP will enforce and investigate AAP obligations with respect to veterans and workers with disabilities.

Questions about affirmative action program obligations for federal contractors, or other Trump Administration employment law changes? We’re here to help!