DOL Halts OFCCP Layoffs, Focuses on Reassignments

By Rosemary Cox, M.S.

Blog Overview
Over 150 former employees of the Office of Federal Contract Compliance Programs (OFCCP) have had their reductions-in-force cancelled and are being reassigned to OFCCP or other Department of Labor agencies. 

On August 12, 2025, the National Council of Field Labor Locals, an American Federation of Government Employees-affiliated union that represents Labor Department employees, told the Government Executive that some of the widespread layoffs at the Office of Federal Contract Compliance Programs (OFCCP) will no longer take place. 

Instead, approximately 155 employees who were slated to be removed from the federal contractor watchdog under reduction-in-force procedures will be reassigned to OFCCP or other Department of Labor (DOL) agencies. This move, according to a DOL spokesperson, aims to maintain workforce continuity and support critical roles amid departmental restructurings.

OFCCP still enforces anti-discrimination laws for workers with disabilities and veterans. The agency was aldo formerly responsible for investigations under Executive Order 11246; however, an executive order issued by President Donald Trump revoked those requirements on the second day of his second term. 

According to the DOL spokesperson, the department has already reduced its workforce by 20% through voluntary departures and attrition, meeting its downsizing goals without further layoffs.

2025 has been a roller coaster year for federal contractors, in large part due to regulatory changes and questions about whether OFCCP will continue to exist. Still, it is important to remember the following:

• OFCCP has been consistent in stating that requirements stemming from Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) are still in full force and effect, including the requirements to annually develop Section 503 and VEVRAA affirmative action plans.
• Contractors should continue to meet their obligations under Section 503 and VEVRAA and be ready to defend their employment practices in any remaining open audits and/or complaint investigations.
• The Senate Appropriations Committee approved an appropriations bill for the federal government’s fiscal year 2026 that includes close to $106 million for OFCCP, despite a White House budget that previously called for the elimination of OFCCP. 

DCI will continue to monitor this ongoing situation and provide insight as it becomes available.