OFCCP & VETS-4212 Updates: What You Need to Know

On June 27, 2025, the Office of Federal Contract Compliance Programs (OFCCP) posted a new “Dear Federal Contractor” letter on its website. The letter, signed by OFCCP Director Catherine Eschbach, may have been distributed to some via email, but notably, the usual OFCCP subscriber list was not used for the communication.

This letter introduces voluntary reporting guidance related to Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” and confirms the rescission of Executive Order 11246, which required affirmative action efforts for women and minorities.

This letter does not require any action from federal contractors. However, the OFCCP is encouraging voluntary disclosure of contractors’ compliance efforts and changes made in light of the new Executive Order.

Key Points from the OFCCP Letter

• The Director asserts, without providing specific evidence, that some federal contractors misused affirmative action regulations by treating placement goals as quotas, which led to unlawful hiring decisions.

• OFCCP states its obligation to ensure federal contractors no longer engage in workforce balancing based on protected characteristics.

• Contractors are invited to submit a narrative report on actions taken in response to EO 14173.

The OFCCP Recommends Contractors Voluntarily Address These Areas:

1. Review of previous EO 11246 affirmative action efforts

2. Determination of whether changes in employment and recruitment practices are necessary

3. Description of any changes made and steps taken to implement them

Contractors have a 90-day window from June 27, 2025, to voluntarily respond via the OFCCP contractor portal.

ESA's Guidance on Voluntary Submission

While each contractor must determine the best course of action, Ellen Shong & Associates strongly advises caution.

The OFCCP has provided no guarantees, safe harbor protections, or limitations on how voluntarily submitted information may be used. Any narrative submitted could open the door to:

• Additional agency scrutiny

• Investigations

• Legal exposure, either from the agency or third parties

  
  

Unless a contractor has a specific strategic benefit in mind, ESA does not recommend responding to the OFCCP’s voluntary request. If you would like to discuss your options or review the letter in detail, please contact us.

Coming Soon: VETS-4212 Reporting Website Opening

As a reminder, the VETS-4212 reporting portal is expected to open in early August, with a submission deadline of September 30, 2025. We’ll share an update as soon as the official opening is announced.

For personalized guidance, contact the experts at Ellen Shong & Associates today.