The Trump Administration has announced plans to “eliminate” the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”), the agency currently responsible for enforcing affirmative action and anti-discrimination protections for veterans and workers with disabilities among federal contractors.  Under the Trump Administration’s fiscal year 2026 budget proposal, the OFCCP’s responsibilities would be reassigned to other federal agencies, including the Equal Employment Opportunity Commission (“EEOC”).

According to the Department of Labor’s recently released budget justification, the OFCCP’s enforcement of Section 503 of the Rehabilitation Act (“Section 503”)—which prohibits discrimination against individuals with disabilities—would be transferred to the EEOC. Meanwhile, enforcement of the Vietnam Era Veterans’ Readjustment Assistance Act (“VEVRAA”) would move to the Department of Labor’s Veterans’ Employment and Training Service.  The budget justification states that “[t]his realignment of responsibilities will ensure consistent oversight while shrinking the Federal bureaucracy,” noting that in the wake of Executive Order 14173, which rescinded Executive Order 11246 and ended government contractors’ obligations to engage in affirmative action on the basis of race and sex, OFCCP’s main oversight activity has been eliminated.

Transferring Section 503 enforcement to the EEOC would likely require Congress to amend the Rehabilitation Act, which references the Labor Secretary as the official responsible for ensuring compliance.  Lawmakers might also need to pass a reorganization law to facilitate the transfer.  A similar process occurred in 1978, when President Jimmy Carter used the Reorganization Act of 1977 to transfer enforcement of the Age Discrimination in Employment Act (“ADEA”) and the Equal Pay Act (“EPA”) from the Department of Labor’s Wage and Hour Division to the EEOC.

We will continue to monitor developments on this issue and other topics of interest to federal government contractors.

Posted in EEOC, OFCCP, Presidential Actions and Executive Orders
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Photo of Guy Brenner Guy Brenner

Guy Brenner is a partner in the Labor & Employment Law Department and leads the Firm’s Washington, D.C. Labor & Employment practice. He is head of the Government Contractor Compliance Group, co-head of the Counseling, Training & Pay Equity Group and a member…

Guy Brenner is a partner in the Labor & Employment Law Department and leads the Firm’s Washington, D.C. Labor & Employment practice. He is head of the Government Contractor Compliance Group, co-head of the Counseling, Training & Pay Equity Group and a member of the Restrictive Covenants, Trade Secrets & Unfair Competition Group. He has extensive experience representing employers in both single-plaintiff and class action matters, as well as in arbitration proceedings. He also regularly assists federal government contractors with the many special employment-related compliance challenges they face.

Guy represents employers in all aspects of employment and labor litigation and counseling, with an emphasis on non-compete and trade secrets issues, medical and disability leave matters, employee/independent contractor classification issues, and the investigation and litigation of whistleblower claims. He assists employers in negotiating and drafting executive agreements and employee mobility agreements, including non-competition, non-solicit and non-disclosure agreements, and also conducts and supervises internal investigations. He also regularly advises clients on pay equity matters, including privileged pay equity analyses.

Guy advises federal government contractors and subcontractors all aspects of Office of Federal Contract Compliance Programs (OFCCP) regulations and requirements, including preparing affirmative action plans, responding to desk audits, and managing on-site audits.

Guy is a former clerk to Judge Colleen Kollar-Kotelly of the US District Court of the District of Columbia.

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Photo of Mallory Knudsen Mallory Knudsen

Mallory Hart is an associate in the Labor & Employment Law Department and a member of the Employment Litigation & Employment Counseling, Training, and Pay Equity groups.

Mallory attended Loyola University New Orleans College of Law, where she graduated magna cum laude and…

Mallory Hart is an associate in the Labor & Employment Law Department and a member of the Employment Litigation & Employment Counseling, Training, and Pay Equity groups.

Mallory attended Loyola University New Orleans College of Law, where she graduated magna cum laude and earned the distinction of Crowe Scholar. While in law school, Mallory served as Candidate Development and Symposium Editor for the Loyola Law Review. She competed as an oralist and later served as team coach for the National Moot Court Team. Mallory also served as Social Chair and Vice President of the Student Bar Association. During law school, Mallory also served as an extern to the Honorable Jay C. Zainey at the United States District Court for the Eastern District of Louisiana. Upon graduation, Mallory was selected for the Order of Barristers.

During her final year of law school, Mallory worked as a Rule XX Student Practitioner in the Stuart H. Smith Law Clinic and Center for Social Justice-Children’s Rights Clinic, where she submitted an amicus brief to the Louisiana State Supreme Court.

Mallory currently serves as a junior member of the Louisiana State Law Institute.

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