By Yesenia Salguero
On July 2, 2025, Secretary of Labor Lori Chavez-DeRemer issued Order 08-2025, which outlines the Office of Federal Contract Compliance Programs’ priorities and enforcement actions related to Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA). This order includes several updates, one of which indicates that open or pending audits will receive administrative closure from the agency.
Following the Secretary’s Order, DCI has received reports that OFCCP has officially begun issuing administrative closure letters. As of the publishing of this blog, it appears the Southwest and Rocky Mountain (SWARM) region is the only region where these letters have been distributed. This comes as no surprise, as this region remains operational following OFCCP's recent reduction-in-force. It remains unclear whether other regions are sending closure letters and how OFCCP intends to handle these closures with a reduced footprint.
What are Administrative Closure letters?
Administrative closure letters are issued by OFCCP to formally close compliance evaluations without a finding of violation or further enforcement action. This may occur for various reasons, such as:
What should Federal Contractors Do?
Organizations that received an OFCCP notice on January 24, 2025 to "cease and desist all investigative and enforcement activity under the rescinded Executive Order 11246" and to hold in abeyance the disability (Section 503) and veteran (VEVRAA) portions of open audits should be on the lookout for further communication from the OFCCP regarding the official closure of those audits.
DCI will continue to monitor developments, support our clients with active OFCCP audits, and share updates promptly.