Federal Affirmative Action Obligations: New Contract Thresholds Announced

Contractors doing business with the federal government should be aware of changes to affirmative action requirements, which were recently announced by the Office of Federal Contract Compliance Programs.

Under Section 503 of the Rehabilitation Act, employers with contracts of $20,000 or more are subject to certain requirements, while those with contracts of $50,000 or more must maintain a formal affirmative action program for individuals with disabilities. These thresholds reflect inflation adjustments authorized by Congress and implemented by the Federal Acquisition Regulation Council.

Similarly, the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) now applies to contracts exceeding $200,000. Covered contractors must maintain a formal affirmative action program for veterans and file annual VETS-4212 reports. These requirements ensure continued compliance with federal obligations.

Get HR Legal Updates

Stay informed and compliant with the latest HR legal updates.

[hubspot type="form" portal="21102446" id="8fe8c1ff-7144-45ee-b28b-8dc0da98c1e8"]