On July 2, 2025, the U.S. Department of Labor’s Secretary of Labor Lori Chavez-DeRemer announced Order 08-2025, formally lifting the temporary pause (abeyance) on the processing and enforcement of the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act compliance reviews and complaint investigations.

This action follows a series of significant regulatory changes triggered by Executive Order 14173, which rescinded EO 11246 and narrowed Office of Federal Contract Compliance Programs (OFCCP) authority. While enforcement related to EO 11246 remains paused, contractors’ obligations under VEVRAA and Section 503 are fully in effect, and OFCCP has now resumed investigations and complaint handling under these two remaining regulatory frameworks.

What Does this Mean for Federal Contractors?

Since January 21, 2025 and the announcement of EO 14173, federal contractors have been questioning if and when the abeyance would be lifted, and compliance reviews and investigations would resume. The Secretary’s 08-2025 indicates that the OFCCP will now resume the enforcement of VEVRAA and Section 503 complaints that were paused during the abeyance, and that new complaints filed during the pause will also be reviewed and investigated. In addition, OFCCP will administratively close all open compliance reviews from the November 2024 scheduling list due to the previously entangled EO 11246 components, and send closure notifications to affected contractors. While contractors are still required to maintain nondiscrimination plans for protected veterans and individuals with disabilities, the OFCCP’s AAP certification portal remains closed for now.

How Can DirectEmployers Support Federal Contractors?

At DirectEmployers Association, our mission is to support Members in achieving and maintaining compliance through education, tools, and technology. As enforcement resumes under Section 503 and VEVRAA, we stand ready to assist Members in the following:

• VEVRAA Job Listing Compliance: As Members, new jobs are automatically listed with the appropriate employment service delivery system (ESDS) with priority referral given to protected veterans, as required under VEVRAA. In addition, Member jobs are also posted to relevant state and US territory job banks. Our VetCentral reporting then provides documentation and confirmation of delivery in the event of a compliance review or investigation.
• Outreach & Recordkeeping Support: Leverage our partnerships with veteran and disability-focused organizations to support ongoing outreach. Connect with new partners, document and track outreach activity, and assess partners to remain audit-ready and aligned with regulatory expectations.
• Audit Preparation & Guidance: Our compliance experts are available to help you understand the updated regulatory landscape and provide support if you are contacted regarding a pending or new complaint investigation.
• Training & Education: We continue to offer webinars, resources, and compliance updates to keep your teams informed and aligned with the latest actions and expectations.

We’re here to guide you through this transition. As enforcement resumes, rest assured that DirectEmployers will continue to monitor developments and provide the tools and support you need to remain compliant and confident as you move forward. For the official notification from the OFCCP, please review the Secretary’s Order 08-2025.

Questions for the DirectEmployers team? Reach out to your Membership Development representative or submit your question on our online form.