OFCCP Updates Contract Thresholds for Federal Affirmative Action Requirements

Recent regulatory updates mean federal contractors should carefully review whether their current agreements trigger affirmative action obligations for individuals with disabilities and protected veterans.

Federal contractors must maintain formal affirmative action programs depending on the dollar value of the contracts they hold. Under Section 503 of the Rehabilitation Act of 1973, any employer with a federal contract of $50,000 or more is required to maintain a written affirmative action program for individuals with disabilities.

For veterans, the requirements fall under the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA). Beginning October 1, 2025, VEVRAA will apply only to federal contracts exceeding $200,000. Covered contractors must maintain a formal affirmative action program for protected veterans and continue to file annual VETS-4212 Reports.

It is also important to note that the revocation of Executive Order 11246 does not eliminate affirmative action requirements for individuals with disabilities or for protected veterans. Obligations under Section 503 and VEVRAA remain fully intact.

EEOC Releases Updated Guidance on National Origin Discrimination

The U.S. Equal Employment Opportunity Commission (EEOC) has issued an updated, concise “technical assistance” document aimed at helping employers understand what constitutes national origin discrimination.

The EEOC defines national origin discrimination as treating individuals unfavorably or favorably because they are from a particular country or region, because of their ethnicity or accent, or because they appear to be of a particular ethnic background. The guidance provides several real-world examples that may lead to unlawful discrimination, including job postings that imply a preference for applicants from certain countries or with specific visa statuses, and disparate treatment in hiring or firing practices—such as holding U.S. workers to stricter application requirements than H-1B visa holders.

The EEOC also emphasizes that certain employer considerations do not justify preferring foreign workers over American workers. These include customer preference, perceived lower labor costs, or assumptions that individuals of one national origin possess stronger work ethics or higher productivity.

Court Revives FMLA Interference Claim for Employee Seeking Leave Related to Spouse’s Pregnancy

A recent case highlights the importance of properly advising workers of their rights under the Family and Medical Leave Act (FMLA).

A freight handler for FedEx Freight, Inc. requested information about taking FMLA leave related to his wife’s pregnancy. Later, when he informed a manager that he needed to leave work due to pregnancy-related health complications, he was terminated for alleged job abandonment. While the court found insufficient evidence to support claims of ADA associational discrimination or FMLA retaliation, it determined that a jury could reasonably conclude that FedEx failed to notify the employee of his FMLA rights.

The ruling suggests the employee may not have been terminated for refusing overtime had he been properly informed of his right to intermittent FMLA leave during the pregnancy. This case underscores the need for employers to clearly communicate FMLA eligibility and ensure frontline managers are trained to recognize qualifying situations.

Time & Pay’s Perspective

Compliance updates like these evolve quickly—and failing to follow changing rules can lead to unnecessary risk. Time & Pay partners with SESCO HR to help employers stay informed and compliant with federal regulations so they can protect their business, support their workforce, and focus on growth. If you have questions about FMLA compliance, affirmative action requirements, or any other HR or payroll challenge, the professionals at SESCO HR are here to help!