On October 1, 2025, important updates to federal contractor coverage thresholds under Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) went into effect. These changes may impact which organizations are required to maintain affirmative action programs (AAPs) under each law and are the result of inflationary adjustments authorized by the Federal Acquisition Regulatory Council.

What Changed?

Section 503 of the Rehabilitation Act

• Threshold increased from $15,000 to $20,000
• AAP requirements continue to apply to covered federal contractors and subcontractors with:
  • At least 50 employees, and
  • A single federal contract of $50,000 or more

VEVRAA

• Threshold increased from $150,000 to $200,000
• AAP requirements now apply to covered contractors and subcontractors with:
  • At least 50 employees, and
  • A single federal contract of $200,000 or more

These revised thresholds may change your organization’s compliance obligations, particularly if you hold multiple federal contracts or are close to the previous jurisdictional limits.

New OFCCP Resources Available

To assist contractors in determining coverage, the Office of Federal Contract Compliance Programs (OFCCP) has:

• Released a new “Jurisdictional Thresholds” infographic to simplify understanding of the updated requirements.
• Updated its webpage to reflect the latest information and provide easy-to-follow guidance.

These resources are designed to help employers, employees, and other stakeholders quickly assess when Section 503 and VEVRAA regulations apply.

Need Support?

If you have questions about these updates or need help determining how they affect your organization, the OFCCP Customer Service Helpdesk is available at:

• 1-800-397-6251
• 711 (TTY-based Telecommunications Relay Service)

DirectEmployers Members can also reach out to Membership team for additional guidance on navigating these changes and maintaining compliance.