The U.S. Court of Appeals for the Ninth Circuit case involving EEO-1 reports and the Freedom of Information Act (FOIA) has taken another procedural turn. The court’s July 2025 decision in Center for Investigative Reporting v. U.S. Dep’t of Labor upheld the U.S. District Court for the Northern District of California’s finding that workforce composition data in federal contractors’ EEO-1 reports was not protected commercial information under FOIA’s Exemption 4 and as a result, OFCCP improperly withheld release of the reports. After a lengthy delay, the federal government declined to file for reconsideration and the Ninth Circuit’s decision became final December 29, 2025.

According to the parties’ November 19, 2025, joint status report filed in the U.S. District Court for the Northern District of California, both sides agree there are other unresolved issues still pending before the District Court and litigation is not yet complete. As the previous judge retired at the end of last year, the case was reassigned to a new judge. A status conference is set for February 16, 2026, before the new judge.

While the Ninth Circuit’s decision resolved a significant legal question in the Ninth Circuit about FOIA’s Exemption 4, the case itself has not fully concluded and the ultimate impact of the outcome of this matter is yet to be known.

Jackson Lewis attorneys will continue to monitor the situation for updates. If you have questions about this case or what these developments may mean for your organization, contact a Jackson Lewis attorney to discuss.

As the February 2, 2026, pay data reporting deadline draws near, Massachusetts employers with 100 or more employees should take proactive steps to comply with their obligations. Employers should ensure that wage data reports are accurate, complete, and filed on time. Read more about these reporting requirements, timelines, and key compliance considerations.

As of October 1, 2025, the jurisdictional thresholds for two key regulations impacting federal contractors—the Rehabilitation Act (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA)—have increased. These changes stem from an inflationary adjustment statute that authorizes the Federal Acquisition Regulatory Council to review and update acquisition-related thresholds in statutes governing federal procurement.

What Changed?

  • Section 503 of the Rehabilitation Act
    • Coverage threshold increased from $15,000 to $20,000.
  • VEVRAA
    • Coverage threshold increased from $150,000 to $200,000.

Impact on Affirmative Action Program (AAP) Requirements

  • For VEVRAA, AAP requirements now apply to contractors and subcontractors with:
    • At least 50 employees, and
    • A single contract of $200,000 or more.
  • For Section 503, AAP requirements continue to apply to contractors and subcontractors with:
    • At least 50 employees, and
    • A single contract of $50,000 or more.

To help employers and stakeholders navigate these changes, the Office of Federal Contract Compliance Programs (OFCCP) has:

We are still awaiting updates from the agency on the proposed changes to the Veterans and Disability implementing regulations.

For any questions regarding these or other federal contractor obligations please contact the Jackson Lewis attorney with whom you work.

It is being reported that Ashley Romanias has assumed leadership of the Office of Federal Contract Compliance Programs (OFCCP), as Catherine Eschbach steps into a new role as Principal Deputy General Counsel at the Equal Employment Opportunity Commission (EEOC).

At the time of this post, the U.S. Department of Labor (DOL) has not yet issued a formal public announcement of Director Eschbach’s departure or the appointment of a new director.  Romanias most recently served as a Senior Policy Advisor with the DOL.

We are closely monitoring this developing situation and will provide updates as they become available.

For questions about the changing OFCCP landscape, contact a Jackson Lewis attorney to discuss.

On August 25, 2025, the Office of Federal Contract Compliance Programs (OFCCP) issued a new request for public comments on proposed revisions to its data collection and recordkeeping requirements under Section 503 of the Rehabilitation Act of 1973 (Section 503), which would include the withdrawal of the Voluntary Self-Identification of Disability form (OMB Control No. 1250-0005).  The comment period is open until October 24, 2025.

The request is a companion to the Department of Labor’s (DOL) earlier Notices of Proposed Rulemaking (NPRM), issued on July 1, 2025, to rescind Executive Order (EO) 11246 implementing regulations and modify the implementing regulations under the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA), and specifically addresses  federal contractors’ affirmative action requirements under Section 503.

The Section 503 NPRM would substantially alter federal contractors’ obligations as they pertain to individuals with disabilities. The proposed Section 503 rules would eliminate references to EO 11246 requirements, reflect the federal government’s broader deregulatory initiatives, and seek to address potential conflicts with the American with Disabilities Act. Among other changes, the proposed rules would rescind self-identification requirements and eliminate contractors’ utilization goal and analysis responsibilities. If finalized, these revisions would significantly scale back federal contractor’s disability-related data collection obligations. As a result, earlier this month several U.S Senators wrote the Secretary of Labor Lori Chavez-DeRemer expressing their opposition to the rule.

The comment deadline for the NPRM was recently extended to September 17, 2025. The OFCCP’s August 25, 2025, Section 503 NPRM request specifically calls for comments that:

Section 503 and its current regulations prohibit federal contractors and subcontractors from discriminating against applicants and employees on the basis of disability status. Covered contractors must also take affirmative steps to employ and advance individuals with disabilities. Applicant and employee data collection and analysis have been key components for monitoring and advancing these compliance obligations.

Contractors should closely monitor these developments. If the Agency determines that disability data collection is no longer required, contractors will need to promptly review and determine what adjustments may be warranted to their compliance and recordkeeping practices. Jackson Lewis attorneys are tracking these developments and evaluating the potential impact on federal contractors. If you have questions about how the OFCCP’s proposed Section 503 regulatory changes may affect your organization, please contact a Jackson Lewis attorney.

Though delayed, OFCCP has released the updated the annual Veteran Hiring Benchmark. The benchmark is set at 5.1% effective July 30, 2025.

The current 5.1% benchmark, is slightly lower than the previous mark of 5.2% set in March 2024 and continues the steady downward trend for this annual hiring benchmark.

Though there remains uncertainty around the future of OFCCP’s existence and VEVRAA enforcement responsibilities, as a reminder, covered government contractors still have an obligation to establish an annual veteran hiring benchmark as part of the preparation and implementation of their VEVRAA Affirmative Action Plans.

On July 30, 2025, the Ninth Circuit Court of Appeals upheld a district court order requiring the U.S. Department of Labor (DOL) to release EEO-1 reports previously withheld in response to Freedom of Information Act (FOIA) requests.  In Center for Investigative Reporting v. U.S. Dep’t of Labor, the Ninth Circuit held that federal contractors’ workforce composition data is not protected “commercial” information under FOIA’s Exemption 4 and must be disclosed.

The case arose when the Center for Investigative Reporting (CIR) requested several years of federal contractors’ EEO-1 reports from the DOL. These reports contain aggregated demographic data, including race, ethnicity, and sex, organized by job category. The DOL initially withheld thousands of reports determining that they may contain confidential commercial information protected from disclosure under FOIA’s Exemption 4. The Agency then published a notice in the Federal Register, giving federal contractors the opportunity to object to the release of their EEO-1 data. After extending the objection deadline, the DOL continued to withhold the reports, prompting CIR to eventually file suit. Following the district court’s order compelling the release the reports, the DOL filed an appeal. 

The DOL argued the EEO-1 reports fall under FOIA’s Exemption 4 because the data “relates to commercial subject matter.”  The Ninth Circuit disagreed. The court explained the information qualifies as “commercial” under Exemption 4 only if it is an object of commerce or “describes an exchange of goods or services for profit.”  Finding the EEO-1 reports alone do not reveal details about federal contractors’ services, prices, profits, or other information typically considered commercial, the court held that the data is not protected information under FOIA. In addition, the court rejected the DOL’s argument that EEO-1 data is “indirectly” related to commercial activity as too attenuated to bring the reports within the scope of Exemption 4.

Because the DOL failed to show that the reports contained protected “commercial” information, the court ordered their disclosure to the CIR.

According to this decision, federal contractors cannot rely solely on FOIA’s Exemption 4 to keep their EEO-1 reports confidential. While the ruling promotes transparency and public access to diversity data for companies doing business with the federal government, it is narrowly focused on the aggregated data of the consolidated EEO-1 reports. Other types of sensitive commercial information may still be protected under FOIA or under Trade Secret protections.

The DOL has limited time to decide whether they will accept the opinion or request a rehearing of the matter.

If you have questions about this decision and how it may impact your organization, contact a Jackson Lewis attorney.

In conjunction with the recent proposed rule changes to the Section 503 of the Rehabilitation Act of 1973 (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) regulations, the Department of Labor (DOL) announced OFCCP has the authority to resume its enforcement activities related to veterans and individuals with disabilities.

On July 2, 2025, Secretary of Labor Lori Chavez-DeRemer issued Secretary’s Order 08-2025, officially lifting the prior temporary pause on enforcement put in place in January 2025 by the then Acting Secretary of Labor. Prompted almost immediately by EO 14173, the prior order, Order 03-2025, directed OFCCP to halt all activities under EO 11246. Order 03-2025 also placed OFCCP’s activities related to Section 503 and VEVRAA in abeyance. The DOL asserted this temporary pause was necessary to unwind EO 11246 programs and separate them from OFCCP’s Section 503 and VEVRAA compliance structure, ensuring that the “OFCCP did not undertake any activity for which it was not authorized.” 

With the abeyance lifted, DOL announced OFCCP can resume work on VEVRRA and Section 503 complaints immediately.

However, with respect to compliance reviews, the notice explained

OFCCP will be exercising its discretion to administratively close all pending compliance reviews and will take no further action related to the scheduling list released in November 2024.  Impacted contractors will promptly receive formal notification of the administrative closure of the pending compliance review. 

Additionally, the notices confirm the Section 503 and VEVRAA affirmative action program (AAP) certification process remains closed at this time and reiterates the Veterans Affairs Health Benefits Program (VAHBP) enforcement moratorium has been extended through May 7, 2027. Despite this, Secretary Chavez-DeRemer’s order reminds contractors that they must continue to meet their obligations under Section 503 and VEVRAA regulations.

Importantly, Secretary’s Order 08-2025 does not rescind the prior DOL order in its entirety. Secretary’s Order 03-2025 provisions related to EO 11246 remain in effect. As outlined in the earlier order, OFCCP must “cease and desist” the Agency’s investigative and enforcement activities under the EO 11246.

If you have questions about OFCCP’s resumed activities and how they could affect your organization, contact a Jackson Lewis attorney to discuss your specific situation and compliance obligations.

OFCCP has published proposed modifications to the VEVRAA and Section 503 regulations which govern federal contractor affirmative action obligations for veterans and individuals with disabilities.

The proposed changes to the veterans’ regulations are largely procedural – removing references to Executive Order 11246 and its implementing regulations – resulting in the veterans’ regulations being wholly self-contained and not reliant on incorporation of the inoperable 11246 regulations. As a note, the Agency has also simultaneously proposed to formally rescind the Executive Order 11246 regulations in an effort to address any confusion as to their status following President Trump’s revocation of Executive Order 11246 in January 2025.

Conversely, while including the same Executive Order 11246 modifications, OFCCP proposes additional modifications to the Section 503 regulations which are more material – proposing to eliminate self-identification data collection and utilization analyses for individuals with disabilities. The proposal does not suggest removing contractors’ obligations to assess the effectiveness of their outreach efforts, however.

To be clear, the obligation to prepare affirmative action plans under both VEVRAA and Section 503 remain intact under OFCCP’s proposals.

The proposed rules are now open for a 60-day public comment period.

We continue to digest the changes and will be back with more insights as they develop.

In a letter dated June 27, 2025, sent to federal contractors and posted on its website, the Office of Federal Contract Compliance Programs (OFCCP) announced it is providing federal contractors the option to voluntarily submit information about actions they have taken in response to Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”

OFCCP Director Catherine Eschbach asserts in the letter that Executive Order 14173 “reaffirmed the central importance of federal non-discrimination laws” by “eliminating reliance upon unlawful, unfair, and unsafe discriminatory practices, including those labeled as Diversity, Equity, and Inclusion (DEI). . . .” EO 14173 rescinded EO 11246, a Johnson-era directive that required federal contractors to implement affirmative action programs to ensure equal employment opportunity on the basis of race and sex.

Director Eschbach notes the deadline to “wind down compliance” with EO 11246 affirmative action requirements was April 21, 2025. Over the next 90 days, the OFCCP is offering federal contractors the option to voluntarily disclose information about their efforts to phase out compliance with previous regulations. Per the notice,

[t]his opportunity allows the federal contractor community to share information, if they choose to, about how they have implemented EO 14173.  

Federal contractors can submit a narrative, if they choose to, through OFCCP’s Contractor Portal. While the “content, format, and decision to provide any information is completely up to the contractor,” and OFCCP emphasizes disclosure is not mandatory, and goes on to provide guidance and considerations for those electing to supply their information.

At the time of publishing this blog post, it is not known how OFCCP intends to use federal contractors’ disclosed information which makes the decision whether to provide the Agency with any information difficult. Today’s letter also comes on the heels of the Department of Labor’s proposed elimination of OFCCP next fiscal year.

We continue to monitor developments in this area and will update this post as we learn more.

For assistance in understanding the OFCCP’s letter and its implications, contact a Jackson Lewis attorney to discuss.