The Office of Federal Contract Compliance Programs (OFCCP) has issued the Final Rules OFCCP-Logofor the Vietnam Era Veterans’ Readjustment Assistance Act and the Rehabilitation Act. The Final Rules  will require a change in how federal contractors hire, report and record their efforts to veterans and individuals with disabilities under these rules.

Veterans’ Regulations Changes

  • Contractors must establish annual hiring benchmarks for protected veterans.
  • Contractors must document and annually record the number of veterans who apply for jobs and the number of veterans they hire.
  • Contractors must invite applicants to self-identify, at pre-offer, post-offer, and every 5 years.

Section 503 Disability Regulations Changes

  • Establishes an “aspirational” 7% utilization goal of hiring individuals with disabilities;
  • Contractors must invite applicants to self-identify at pre-offer and post-offer.
  • Contractors must permit OFCCP on-site or off-site access to documents for compliance and focused reviews.

The most immediate change required by these rules will be to update subcontracts. All subcontracts must now contain the following language:

This contractor and subcontractor shall abide by the requirements of 41 CFR 60-300.5(a). This regulation prohibits discrimination against qualified protected veterans, and requires affirmative action by covered prime contractors and subcontractors to employ and advance in employment qualified protected veterans.”

And, yes, this provision must be in bold print.

These new regulations will require federal contractors to review their obligations under both the VERAA and section 503 regulations.  Over the next few weeks, we’ll detail contractors’ obligations under the new regulations.