OFCCP Issues New Rules Regarding Veterans and Disabled Employees
In August 2013, the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) announced new rules applicable to government contractors. The new rules modified certain regulations regarding the employment of persons subject to the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act. The OFCCP believed that such changes were necessary to respond to the agency’s assessment of disproportionately high unemployment for certain veterans and disabled persons. These rule changes become effective March 24, 2014.
The new rules require government contractors and covered subcontractors to comply with new recordkeeping requirements, engage in particular outreach efforts, and set certain aspirational utilization goals. For example, contractors and subcontractors must establish a utilization goal of 7% disabled employees in each job group.
To help contractors identify the significant changes in the regulations, the OFCCP has posted on its website side-by-side comparison charts regarding the final and prior rules. The comparison chart regarding the VEVRAA changes can be found here. The Section 503 chart is available here.
Takeaway: Government contractors and covered subcontractors should familiarize themselves with these regulatory changes prior to their March 24, 2014 effective date. While the regulations themselves are lengthy, the above-referenced comparison charts will help target the material new requirements.