OFCCP administers and enforces the three equal employment opportunity mandates described below. Generally, these mandates protect workers from discrimination and require companies doing business with the federal government to take certain affirmative steps to ensure equal employment opportunity. However, these mandates only apply to companies that have entered into federal contracts or subcontracts that meet specific dollar thresholds. When describing the thresholds for each legal authority below, the term "contracts" is inclusive of subcontracts.
The infographic is designed to explain jurisdictional thresholds for federal contractors and subcontractors under Executive Order 11246, as amended (Executive Order); Section 503 of the Rehabilitation Act of 1973, as amended (Section 503); and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended, 38 U.S.C. 4212 (VEVRAA). It includes the increase to Section 503’s coverage threshold from $10,000 to $15,000 and the VEVRRA’s recent increase from $100,000 to $150,000. The increases result from an inflationary adjustment statute that authorizes the Federal Acquisition Regulatory Council to review and adjust acquisition–related threshold amounts in statutes that apply to federal procurement.
Executive Order 11246, as amended
Executive Order 11246 applies to businesses with federal contracts and federally assisted construction contracts totaling more than $10,000. As a condition of these contracts, businesses agree to not discriminate on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin, and to take affirmative actions to ensure equal employment opportunity. Additionally, these federal contractors agree not to take adverse employment actions against applicants and employees who, under certain circumstances, ask about, discuss, or share information about their pay or the pay of their co‐workers.
If a company has at least 50 employees and a single contract of $50,000 or more, then it must also develop an Affirmative Action Program (AAP), as described at 41 CFR 60‐2. Companies whose sole coverage comes from construction contracts or federally assisted construction contracts are not required to develop an AAP, but they must comply with 16 specific affirmative actions outlined in the equal opportunity construction contract clause.
Section 503 of the Rehabilitation Act of 1973, as amended (Section 503)
Under Section 503, a business with a federal contract of more than $10,000 is required to treat qualified individuals with disabilities without discrimination on the basis of their physical or mental disability in all employment practices, and to take affirmative action to employ and advance in employment individuals with disabilities. Though Section 503 itself has not been amended, the jurisdiction threshold amount has been adjusted to $15,000 for inflation (see below). If the company has at least 50 employees and a single contract of $50,000 or more, then it must also develop a Section 503 AAP, as described in 41 CFR 60‐741, Subpart C. Section 503 applies to businesses with federal construction contracts, but not to businesses with federally assisted construction contracts.
Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended (VEVRAA)
Under VEVRAA, a business with a federal contract of $100,000 or more is required to treat qualified individuals without discrimination based on their status as a protected veteran in all employment practices, and to take affirmative action to employ and advance in employment protected veterans. Though VEVRAA itself has not been amended, the jurisdiction threshold has been adjusted to $150,000 for inflation (see below). If the company has at least 50 employees and a single contract of $150,000 or more, then it must also develop a VEVRAA AAP, as described in 41 CFR 60‐300, Subpart C. VEVRAA applies to businesses with federal construction contracts, but not to businesses with federally assisted construction contracts.
Inflationary Adjustments to Section 503 and VEVRAA Jurisdictional Thresholds
Though the Section 503 and VEVRAA statutes themselves have not been amended, in 2004, Congress enacted Section 807 of the Ronald Reagan National Defense Authorization Act, codified at 41 U.S.C. 1908. This law requires the Federal Acquisition Regulation Council (FAR Council) to review the dollar threshold amounts in certain federal agency procurement related laws every five years to determine whether they need to be adjusted for inflation. As a result of these reviews, the FAR Council implemented inflationary adjustments of acquisition‐related dollar thresholds for Section 503 and VEVRAA.
In 2010, the FAR implemented an adjustment for Section 503 changing the threshold amount from $10,000 to $15,000. See "Federal Acquisition Regulation; Inflation Adjustment of Acquisition‐Related Thresholds," 75 FR 53129 (2010). In 2015, a similar adjustment to the VEVRAA threshold was made increasing it from $100,000 to $150,000. See "Federal Acquisition Regulation; Inflation Adjustment of Acquisition‐Related Thresholds," 80 FR 38293 (2015). While OFCCP’s regulations at 41 CFR 60 Parts 300 and 741 do not currently reflect these inflationary adjustments, OFCCP adopted the FAR Council’s adjusted thresholds for determining whether a contractor is covered by Section 503 and VEVRAA regulatory requirements.
Executive Order 11246 is not subject to inflationary adjustment by the FAR Council.
Please note that this page provides general information. It is not intended to substitute for the actual law and regulations regarding the program described herein.