Labor & Employment Law Daily Wrap Up, OFCCP NEWS—Federal contract value thresholds for Section 503, VEVRAA compliance have increased, (Dec 1, 2025)
Organizations Mentioned:Federal Acquisition Regulatory Council | Office of Federal Contract Compliance Programs
By Patricia K. Ruiz, J.D.
The OFCCP explained that the threshold increases are the result of required inflationary adjustments.
The jurisdictional thresholds for Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act have increased, according to a release from the Office of Federal Contract Compliance Programs (OFCCP). The increases took effect October 1, 2025.
Threshold increases. According to the OFCCP, the basic coverage threshold for Section 503, which applies to contractors or subcontractors with any number of employees, increased from $15,000 to $20,000. Under Section 503, a business that has a federal construction contract and that meets the updated basic threshold 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 qualified individuals with disabilities. A business with at least 50 employees and single contract of $50,000 or more must also develop a Section 503 AAP.
Under VEVRAA, a business with a federal construction contract of $200,000 or more is required to treat qualified individuals without discrimination in all employment practices, based on the worker’s status as a protected veteran. If a business with a single federal construction contract of $200,000 or more and at least 50 employees must also develop a VEVRAA AAP.
Inflationary adjustments. The threshold increases resulted from an inflationary adjustment statute authorizing the Federal Acquisition Regulatory Council (FAR Council) to review and adjust “acquisition-related” threshold amounts in statutes applying to federal procurement. The FAR Council is required to review the dollar threshold amounts in certain federal agency procurement-related laws every five years to determine whether adjustments are needed due to inflation.
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