/>iThis article summarizes recent developments at the Equal Employment Opportunity Commission (EEOC), the Office of Federal Contract Compliance Programs (OFCCP), and the U.S. Department of Labor (DOL). Employers and federal contractors should take note of the evolving regulatory landscape.
Equal Employment Opportunity Commission (EEOC)
Harassment Guidance Partially Vacated
On May 15, 2025, a federal district court in Texas vacated portions of the EEOC’s Enforcement Guidance on Harassment in the Workplace. Specifically, the court invalidated sections addressing harassment based on sexual orientation and gender identity, holding that they exceeded statutory authority. While Title VII and the Bostock decision continue to provide legal protections, the vacatur alters the weight of the EEOC’s interpretive guidance. Employers should review their harassment policies and ensure they remain aligned with statutory requirements and judicial precedent.
EEO-1 Data Collection
The 2024 EEO-1 Component 1 data collection was conducted between May 20 and June 24, 2025. Notably, the EEOC’s Instruction Booklet, approved by the Office of Management and Budget, eliminated the nonbinary reporting option, requiring employers to choose between binary gender categories. Employers should confirm that their workforce data collection processes reflect this change for future filings.
Enforcement Priorities
The EEOC continues to prioritize harassment and retaliation claims in its enforcement activities. Employers are encouraged to conduct regular training, review complaint procedures, and ensure timely responses to internal concerns.
Office of Federal Contract Compliance Programs (OFCCP)
Revocation of Executive Order 11246
Executive Order 11246, which historically required federal contractors to maintain affirmative action programs for women and minorities, was revoked by President Trump on January 21, 2025 (Executive Order 14173).
Rulemaking to Rescind EO 11246 Regulations
On July 1, 2025, the Department of Labor published a Notice of Proposed Rulemaking (NPRM) to rescind the EO 11246 regulations. The NPRM also proposes modifications to regulations implementing Section 503 of the Rehabilitation Act (individuals with disabilities) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). On September 4, 2025, the Department extended the comment period to September 17, 2025.
Operational Shifts
Contractors should expect OFCCP audits to focus exclusively on Section 503 and VEVRAA obligations once the rulemaking process is finalized. The General Services Administration has already begun removing EO 11246 compliance clauses from federal contracts.
Decision Map for Federal Contractors (OFCCP Compliance)
Below is a decision map summarizing current obligations under OFCCP’s evolving framework:
Department of Labor (DOL)
Regulatory Agenda
In early September 2025, DOL released its updated Unified Agenda of Regulatory and Deregulatory Actions. The Agenda reflects the Administration’s deregulatory emphasis, including proposed modifications to Occupational Safety and Health Administration (OSHA) and Wage and Hour Division (WHD) regulations. Employers should closely monitor forthcoming rulemakings and prepare to submit comments where appropriate.
Grant Funding
DOL has also announced new funding opportunities, including workforce development initiatives in shipbuilding and related industries. Contractors and educational institutions may wish to explore these opportunities as part of broader workforce planning strategies.
Key Takeaways
- EEOC: Update harassment policies to reflect statutory law post-vacatur; confirm binary reporting systems for EEO-1 filings.
- OFCCP: Suspend race/sex AAP updates under EO 11246; continue full compliance with Section 503 and VEVRAA; consider submitting comments by September 17, 2025.
- DOL: Monitor regulatory rollouts in the Unified Agenda and be prepared to comment; assess grant opportunities.
