The Federal Acquisition Regulatory Council has authorized an increase to the jurisdictional thresholds for the individuals with disabilities and qualified covered veterans’ affirmative action programs for covered employers. These thresholds are associated with Section 503 of the Rehabilitation Act of 1973 (29 U.S.C. § 793) and the Vietnam Era Veterans’ Readjustment Assistance Act, VEVRAA (38 U.S.C. § 4212).
Beginning October 1, 2025, the threshold for Section 503-covered contracts increased from a single contract of $15,000 to $20,000 or more, and the threshold for VEVRAA-covered contracts increased from a single contract of $150,000 to $200,000 or more. These are the basic thresholds that require compliance with non-discrimination and affirmative action rules for individuals with disabilities and qualified covered veterans.
Additionally, federal contractors with 50 or more employees and a single contract of $50,000 or more must maintain a Section 503/Disability Affirmative Action Plan. Federal contractors with a single contract of $200,000 or more must also maintain a VEVRAA/Veterans Affirmative Action Plan.
These inflationary adjustments were part of a contractor assistance program instituted by the Office of Federal Contract Compliance Programs (OFCCP). The proposed 2026 Department of Labor’s Federal Budget has defunded the OFCCP, and jurisdiction of affirmative action rules is moving to other agencies within the U.S. Department of Labor.
In 2026, oversight of disability protections associated with Section 503 will be transferred to the Equal Employment Opportunity Commission (EEOC). Oversight of VEVRAA rules for qualified covered veterans will move to the Veterans Employment and Training Service (VETS).
There have been rapid changes to affirmative action in 2025. January saw the repeal of Executive Order 11246, which had ensured nondiscrimination obligations towards women and minorities. These federal changes have not altered state and local nondiscrimination obligations, leading to confusion. Further changes to federal affirmative action requirements could be coming in 2026.
Employers Council can help your organization stay on top of these changes. Contact us to help determine your regulatory threshold and the related requirements. If you're interested in having Employers Council create an affirmative action plan for your organization, please contact us at aaps@employerscouncil.org
James Arroyo, MA, SPHR, SHRM-SCP, is a Senior Affirmative Action Specialist with Employers Council.