The Office of Federal Contract Compliance Programs (OFCCP) is set to implement a substantial reduction in its workforce, decreasing from 479 employees to just 50, as outlined in a memorandum from Acting Director Michael Schloss to Acting Secretary of Labor Vincent Micone.
This downsizing follows President Trump’s recent revocation of Executive Order 11246, which previously mandated affirmative action requirements for federal contractors. The agency will shift its focus exclusively to enforcing compliance with the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act, which pertain to protections for veterans and individuals with disabilities.
As part of the restructuring, the OFCCP plans to close 51 of its 55 offices nationwide, consolidating operations into four locations. The policy division will be reduced to five employees tasked with recommending regulatory changes that reflect the elimination of Executive Order 11246 and emphasize the agency’s new focus areas.
Additionally, the agency intends to eliminate its enforcement division, which includes labor economists and statisticians responsible for conducting analyses under the previous executive order. The OFCCP stated that these “skillsets are no longer needed” for enforcing VEVRAA and Section 503.
These changes have raised concerns among lawmakers and advocacy groups about the potential impact on equal employment opportunity enforcement. The significant reduction in staff and resources may affect the agency’s ability to effectively oversee federal contractors’ compliance with affirmative action and nondiscrimination obligations.
The OFCCP has not yet released a detailed timeline for the implementation of these workforce reductions and office closures. Federal contractors and stakeholders are advised to monitor developments closely to understand how these changes may affect compliance requirements and enforcement activities.