Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended

Issuing agencies

Abstract

The U.S. Department of Labor publishes this final rule to revise its implementing regulations for the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended (VEVRAA). These revisions will align the regulations with Executive Order 14173 and remove the VEVRAA regulations' cross-references to the Executive Order 11246 authority. Executive Order 11246 was revoked by Executive Order 14173 on January 21, 2025. This final rule also makes technical revisions to update the VEVRAA regulations' jurisdictional thresholds, which were adjusted for inflation by the Federal Acquisition Regulation Council on October 1, 2025.

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 161 (Friday, August 21, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 161 (Friday, August 21, 2026)]
[Rules and Regulations]
[Pages 54234-54244]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17116]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Office of Federal Contract Compliance Programs

41 CFR Part 60-300

[Docket No. OFCCP-2025-0002]
RIN 1250-AA19


Modifications to the Regulations Implementing the Vietnam Era 
Veterans' Readjustment Assistance Act of 1974, as Amended

AGENCY: Office of Federal Contract Compliance Programs, Labor.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Labor publishes this final rule to 
revise its implementing regulations for the Vietnam Era Veterans' 
Readjustment Assistance Act of 1974, as amended (VEVRAA). These 
revisions will align the regulations with Executive Order 14173 and 
remove the VEVRAA regulations' cross-references to the Executive Order 
11246 authority. Executive Order 11246 was revoked by Executive Order 
14173 on January 21, 2025. This final rule also makes technical 
revisions to update the VEVRAA regulations' jurisdictional thresholds, 
which were adjusted for inflation by the Federal Acquisition Regulation 
Council on October 1, 2025.

DATES: This rule is effective September 21, 2026.

FOR FURTHER INFORMATION CONTACT: Kenneth Wolfe, Director, OFCCP, 200 
Constitution Avenue NW, Washington, DC 20210. Telephone: 202-693-0101. 
Email: <a href="/cdn-cgi/l/email-protection#cda2abaeaebd92aab8a4a9aca3aea88da9a2a1e3aaa2bb"><span class="__cf_email__" data-cfemail="0a656c69697a556d7f636e6b64696f4a6e6566246d657c">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Background

    The U.S. Department of Labor (DOL) enforces VEVRAA, 38 U.S.C. 4212, 
and its implementing regulations at 41 CFR part 60-300. VEVRAA, as 
applied by regulation, prohibits Federal contractors and subcontractors 
(contractors) \1\ from discriminating against employees and applicants 
because of their status as a protected veteran (defined by the statute 
to include disabled veterans, recently separated veterans, Armed Forces 
service medal veterans, and active duty wartime or campaign badge 
veterans). VEVRAA also requires covered contractors to take 
``affirmative action to employ and advance in employment qualified 
covered veterans.'' 38 U.S.C. 4212(a).
---------------------------------------------------------------------------

    \1\ Hereinafter, the terms ``contractor'' or ``Federal 
contractor'' are used to refer collectively to Federal contractors 
and subcontractors that fall under OFCCP's authority, unless 
otherwise expressly stated. This approach is consistent with OFCCP's 
regulations, which define ``contract'' to include subcontracts and 
``contractor'' to include subcontractors. See 41 CFR 60-300.2.
---------------------------------------------------------------------------

    The basic requirements in VEVRAA generally apply to any business or 
organization that holds a single Federal contract or subcontract of at 
least $200,000.\2\ Further, under the current regulations, contractors 
with 50 or more employees and a single Federal contract or subcontract 
of $200,000 or more are also required to develop and maintain an 
affirmative action program (AAP), where they must implement and 
document their affirmative action efforts on an annual basis, as 
provided in 41 CFR part 60-300, subpart C.
---------------------------------------------------------------------------

    \2\ Effective October 1, 2025, the coverage threshold under 
VEVRAA increased from $150,000 to $200,000, in accordance with the 
inflationary adjustment requirements in 41 U.S.C. 1908. See Federal 
Acquisition Regulation: Inflation Adjustment of Acquisition-Related 
Thresholds, 90 FR 41872 (Aug. 27, 2025).
---------------------------------------------------------------------------

II. Need for the Rulemaking

    Prior to January 21, 2025, DOL administered and enforced Executive 
Order 11246, ``Equal Employment Opportunity,'' as amended (Executive 
Order 11246), Section 503 of the Rehabilitation Act of 1973, as amended 
(Section 503), and VEVRAA. On January 21, 2025, President Trump issued 
Executive Order 14173, ``Ending Illegal Discrimination and Restoring 
Merit-Based Opportunity,'' 90 FR 8633 (Jan. 31, 2025). Executive Order 
14173 revoked Executive Order 11246. Executive Order 11246, and its 
implementing regulations at 41 CFR part 60-1 et seq., prohibited 
contractors from discriminating against employees and applicants 
because of race, color, religion, sex, sexual orientation, gender 
identity, national origin, or because they inquired about, discussed, 
or disclosed their compensation or that of others, subject to certain 
limitations. Contractors were also required to take certain affirmative 
actions to promote equal employment opportunity in their workplaces, as 
specified in 41 CFR part 60-2 and 41 CFR part 60-4.
    While VEVRAA remains in effect, the revocation of Executive Order 
11246 necessitates several revisions to the VEVRAA implementing 
regulations. On July 1, 2025, DOL published a Notice of Proposed 
Rulemaking (NPRM) in the Federal Register proposing specific revisions. 
See 90 FR 28485 (July 1, 2025). Specifically, DOL proposed removal of 
the cross-reference to the Executive Order 11246 administrative 
proceeding procedures found in 41 CFR 60-300.65(b) and proposed the 
addition of those administrative proceeding procedures directly into 
VEVRAA's implementing regulations, except where duplicative of current 
part 60-300 provisions (e.g., the severability clause).\3\
---------------------------------------------------------------------------

    \3\ In a separate rulemaking, DOL proposed similar changes to 
the Section 503 regulations. If the proposed changes become final, 
the 41 CFR part 60-30 regulations will be duplicative and 
unnecessary as they will be incorporated into 41 CFR parts 60-300 
and 60-741. As such, as part of the Section 503 rulemaking, DOL is 
also proposing to rescind 41 CFR part 60-30 using a delayed 
effective date.
---------------------------------------------------------------------------

    DOL also proposed removal of a reference to 41 CFR part 60-3 
because this citation is part of the revoked Executive Order 11246 
authority. Additionally, DOL proposed removal of the 29 U.S.C. 793 
reference in the authority citation for 41 CFR part 60-300. The 29 
U.S.C. 793 reference refers to the Section 503 authority and is 
unnecessary.

[[Page 54235]]

    Further, effective October 1, 2025, the coverage threshold under 
VEVRAA increased from $150,000 to $200,000, in accordance with the 
inflationary adjustment requirements in 41 U.S.C. 1908.\4\ The NPRM did 
not reflect the updated threshold amount because the increase became 
effective after the publication of the NPRM. To align the final rule 
with the current jurisdictional threshold, DOL has updated the relevant 
regulatory provisions in this final rule to reflect the threshold 
increase.\5\ DOL finds good cause to make these changes without prior 
notice and comment pursuant to 5 U.S.C. 553(b)(B). Specifically, DOL 
finds that notice and comment is unnecessary because the inflationary 
adjustments are minor and technical amendments that were previously 
subject to notice and comment through the Federal Acquisition 
Regulatory (FAR) Council's rulemaking process and are now binding on 
the VEVRAA regulations.\6\
---------------------------------------------------------------------------

    \4\ See Federal Acquisition Regulation: Inflation Adjustment of 
Acquisition-Related Thresholds, 90 FR 41872 (Aug. 27, 2025).
    \5\ Specifically, DOL has updated the jurisdictional threshold 
amounts included in 41 CFR 60-300.1(b), 41 CFR 60-300.2(f), (o), 
(p), (aa), 41 CFR 60-300.4(a)(1)-(2), 41 CFR 60-300.5(a)(11), 41 CFR 
60-300.40(a), and 41 CFR 60-300.80(a) to reflect the inflationary 
adjustments.
    \6\ See Federal Acquisition Regulation: Inflation Adjustment of 
Acquisition-Related Thresholds, 90 FR 41872 (Aug. 27, 2025).
---------------------------------------------------------------------------

III. Public Comments

    The NPRM originally provided for a 60-day comment period, scheduled 
to close on September 2, 2025. After receiving comments requesting an 
extension of the comment period, DOL extended the comment period until 
September 17, 2025.\7\ DOL received 18 public comments in response to 
the NPRM. The commenters included employer associations, policy 
advocacy organizations, law firms and legal organizations, an education 
and research center, a veterans' rights organization, and individuals. 
The public comments are organized by topic and discussed below.
---------------------------------------------------------------------------

    \7\ Modifications to the Regulations Implementing the Vietnam 
Era Veterans' Readjustment Assistance Act of 1974, as Amended; 
Extension of Comment Period, 90 FR 42713 (Sept. 4, 2025).
---------------------------------------------------------------------------

A. Comments Related to the Administrative Proceeding Procedures

    DOL received numerous comments on its proposal to relocate the 
administrative proceeding procedures formerly contained in the 
Executive Order 11246 regulations into the VEVRAA implementing 
regulations. Several commenters supported this proposal, stating that 
conforming the regulatory structure in this manner is reasonable and 
appropriate following the revocation of Executive Order 11246. These 
commenters noted that consolidating the applicable procedures within 
the VEVRAA regulations would improve regulatory clarity and 
transparency regarding the procedures governing enforcement of VEVRAA. 
Other commenters recommended that DOL modify or eliminate the 
administrative proceeding procedures because of recent case law 
challenging the use of Administrative Law Judges (ALJs) by Federal 
agencies. See, e.g., Space Exploration Tech. Corp. v. Nat'l Labor 
Relations Bd., 151 F.4th 761 (5th Cir. 2025) (challenging the structure 
of the NLRB, including its ALJs); ABM Indus. Groups, LLC v. U.S. Dep't 
of Labor, et al., 756 F. Supp. 3d 468 (S.D. Tex. Oct. 30, 2024) 
(holding that Plaintiff is likely to succeed on its claim that the 
assigned DOL ALJ is unconstitutionally protected by two layers of good-
cause removal restrictions), vacated, No. 4:24-CV-03353, 2024 WL 
6076919. Relying on this case law, some of these commenters asserted 
that DOL can no longer use the ALJ structure included in the current 
procedures. Commenters also cited SEC v. Jarkesy, 603 U.S. 109 (2024), 
in which the Supreme Court held that the Seventh Amendment requires the 
Securities and Exchange Commission (SEC) to pursue civil penalties in 
Federal court where the defendant is entitled to a jury trial. Some 
commenters further cited lower court decisions applying Jarkesy outside 
the SEC context, including Sun Valley Orchards, LLC v. U.S. Dep't of 
Labor, 148 F.4th 121 (3d Cir. 2025), cert. granted, 2026 WL 1127242 
(U.S. Apr. 27, 2026) (applying Jarkesy to hold that DOL could not seek 
certain monetary remedies through administrative proceedings). However, 
the application of Jarkesy outside the SEC context remains unsettled 
and continues to be addressed by the courts. Compare Sun Valley 
Orchards with Axalta Coating Systems LLC v. FAA, 144 F.4th 467 (3d Cir. 
2025) (holding that Jarkesy did not bar administrative adjudication of 
civil penalties for violations of hazmat regulations). DOL sought 
Supreme Court review of Sun Valley Orchards, and the Court granted a 
writ of certiorari.
    In any event, these developments do not affect DOL's decision here. 
This final rule does not expand DOL's remedial authority, create new 
causes of action, or establish new enforcement mechanisms. It merely 
relocates the existing procedural provisions after the revocation of 
Executive Order 11246. To the extent future judicial decisions clarify 
the constitutional status of DOL's ALJs, clarify the application of 
Jarkesy to DOL enforcement actions, or otherwise require changes to 
DOL's administrative enforcement structure or available remedies, then 
the impact of potential future judicial decisions on such issues may be 
addressed in a separate rulemaking. DOL reaffirms its position that 
moving the administrative proceeding procedures directly into the 
VEVRAA regulations is necessary due to the revocation of Executive 
Order 11246. This change will also provide clarity about the current 
administrative proceeding procedures applicable to VEVRAA.

B. Other Comments

    Some commenters expressed general support for the VEVRAA 
regulations without addressing specific issues discussed in the NPRM. 
Other commenters raised issues unrelated to the proposed changes, such 
as recommending the removal of the show cause notice procedures from 41 
CFR 60-300.62, recommending the removal of AAP requirements contained 
in the regulations, or requiring a barrier analysis when contractors 
are below the VEVRAA hiring benchmark, described at 41 CFR 60-300.45, 
for two consecutive years. DOL is not addressing these comments in the 
final rule as they are outside the scope of this rulemaking. If DOL 
determines that additional regulatory changes may be necessary, then 
DOL may pursue those changes in a separate rulemaking.

C. Final Rule Summary

    For the reasons stated above, the final rule adopts the various 
changes proposed in the NPRM, which include each of the following: 
moving the administrative proceeding procedures directly into the 
VEVRAA regulations, specifically into 41 CFR 60-300.65(c) through (mm), 
except where duplicative of current part 60-300 provisions; removing 
the cross-reference to the Executive Order 11246 administrative 
proceeding procedures found in 41 CFR 60-300.65(b); removing the 
reference to 41 CFR part 60-3, which was included in 41 CFR 60-
300.21(g)(2); and removing the unnecessary 29 U.S.C. 793 reference 
included in the authority citation for 41 CFR 60-300. The final rule 
also includes the recent inflationary adjustments to the VEVRAA 
jurisdictional thresholds. As detailed above, DOL has found good cause 
to implement the inflationary adjustments without notice and comment 
because the adjustments are minor and technical amendments that were 
previously subject to notice and comment through

[[Page 54236]]

the FAR Council's rulemaking process and the adjustments are now 
binding on the VEVRAA regulations.\8\
---------------------------------------------------------------------------

    \8\ See Federal Acquisition Regulation: Inflation Adjustment of 
Acquisition-Related Thresholds, 90 FR 41872 (Aug. 27, 2025).
---------------------------------------------------------------------------

IV. Procedural Issues and Regulatory Review

A. Review Under Executive Order 12866

    Executive Order 12866, ``Regulatory Planning and Review,'' 58 FR 
51735 (Oct. 4, 1993), requires agencies, to the extent permitted by 
law, to (1) propose or adopt a regulation only upon a reasoned 
determination that its benefits justify its costs (recognizing that 
some benefits and costs are difficult to quantify); (2) tailor 
regulations to impose the least burden on society, consistent with 
obtaining regulatory objectives, taking into account, among other 
things, and to the extent practicable, the costs of cumulative 
regulations; (3) select, in choosing among alternative regulatory 
approaches, those approaches that maximize net benefits; (4) to the 
extent feasible, specify performance objectives, rather than specifying 
the behavior or manner of compliance that regulated entities must 
adopt; and (5) identify and assess available alternatives to direct 
regulation, including providing economic incentives to encourage the 
desired behavior, such as user fees or marketable permits, or providing 
information upon which choices can be made by the public.
    Section 6(a) of Executive Order 12866 also requires agencies to 
submit ``significant regulatory actions'' to the Office of Information 
and Regulatory Affairs (OIRA) for review. In accordance with Executive 
Order 12866, DOL has determined that this final rule does not 
constitute a ``significant regulatory action'' under section 3(f) of 
Executive Order 12866. Accordingly, this final rule was not submitted 
to OIRA for review under Executive Order 12866.

B. Costs and Regulatory Designation

    This rule makes technical and conforming amendments that align 
regulatory text with existing requirements. It imposes no new 
obligations. The adjustment to the jurisdictional threshold increases 
the contract value required for coverage under VEVRAA from $150,000 to 
$200,000. Because the increased threshold exceeds a pure inflation 
adjustment, DOL expects that fewer contractors will be subject to the 
relevant VEVRAA regulatory requirements, resulting in reduced 
compliance burdens. Accordingly, the rule has a deregulatory effect. 
DOL lacks data to determine how many contractors will no longer be 
covered as a result of this change, but DOL expects the number to be 
small given the incremental nature of the threshold increase. This rule 
is considered a deregulatory action under Executive Order 14192.

C. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires 
preparation of an initial regulatory flexibility analysis (IRFA) and a 
final regulatory flexibility analysis (FRFA) for any rule that by law 
must be proposed for public comment, unless the agency certifies that 
the rule, if promulgated, will not have a significant economic impact 
on a substantial number of small entities.
    DOL reviewed this final rule under the provisions of the Regulatory 
Flexibility Act. This final rule provides regulatory certainty to 
contractors and other stakeholders by aligning the regulations with the 
most recent executive orders and inflationary adjustments. As discussed 
above, the revisions are technical in nature, and do not impose any new 
requirements for covered entities. The increase in the jurisdictional 
threshold reduces the number of entities subject to the regulations. 
DOL lacks data to determine how many small entities will no longer be 
covered, but DOL expects the number to be small given the incremental 
nature of the threshold increase. Accordingly, DOL has concluded that 
the impacts of the final rule would not have a ``significant economic 
impact on a substantial number of small entities'' and that the 
preparation of a FRFA is not warranted. DOL will transmit this 
certification and supporting statement of factual basis to the Chief 
Counsel for Advocacy of the Small Business Administration for review 
under 5 U.S.C. 605(b).

D. Review Under the Paperwork Reduction Act

    This final rule imposes no new information or recordkeeping 
requirements and does not impact current information collections. 
Accordingly, Office of Management and Budget (OMB) clearance is not 
required under the Paperwork Reduction Act. 44 U.S.C. 3501 et seq.

E. Review Under Executive Order 13132

    Executive Order 13132, ``Federalism,'' 64 FR 43255 (Aug. 10, 1999), 
imposes certain requirements on Federal agencies formulating and 
implementing policies or regulations that preempt State law or that 
have federalism implications. Executive Order 13132 requires agencies 
to examine the constitutional and statutory authority supporting any 
action that would limit the policymaking discretion of the States and 
to carefully assess the necessity for such actions. Executive Order 
13132 also requires agencies to have an accountable process to ensure 
meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.
    DOL has examined this final rule and has determined that it would 
not have a substantial direct effect on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government.

F. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' imposes on Federal agencies the general duty 
to adhere to the following requirements: (1) eliminate drafting errors 
and ambiguity; (2) write regulations to minimize litigation; (3) 
provide a clear legal standard for affected conduct rather than a 
general standard; and (4) promote simplification and burden reduction. 
61 FR 4729 (Feb. 7, 1996). Regarding the review required by section 
3(a), section 3(b) of Executive Order 12988 specifically requires that 
Executive agencies make every reasonable effort to ensure that the 
regulation: (1) clearly specifies the preemptive effect, if any; (2) 
clearly specifies any effect on existing Federal law or regulation; (3) 
provides a clear legal standard for affected conduct while promoting 
simplification and burden reduction; (4) specifies the retroactive 
effect, if any; (5) adequately defines key terms; and (6) addresses 
other important issues affecting clarity and general draftsmanship 
under any guidelines issued by the Attorney General.
    Section 3(c) of Executive Order 12988 requires Executive agencies 
to review regulations in light of applicable standards in section 3(a) 
and section 3(b) to determine whether they are met or it is 
unreasonable to meet one or more of them. DOL has completed the 
required review and determined that, to the extent permitted by law, 
this final rule meets the relevant standards of Executive Order 12988.

[[Page 54237]]

G. Review Under the Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires each Federal agency to assess the effects of Federal 
regulatory actions on State, local, and Tribal governments and the 
private sector. Sec. 201, Public Law 104-4 (codified at 2 U.S.C. 1531). 
For a regulatory action likely to result in a rule that may cause the 
expenditure by State, local, and Tribal governments, in the aggregate, 
or by the private sector of $100 million or more in any one year 
(adjusted annually for inflation), section 202 of UMRA requires a 
Federal agency to publish a written statement that estimates the 
resulting costs, benefits, and other effects on the national economy. 2 
U.S.C. 1532(a)-(b). The UMRA also requires a Federal agency to develop 
an effective process to permit timely input by elected officers of 
State, local, and Tribal governments on a ``significant 
intergovernmental mandate,'' and requires an agency plan for giving 
notice and opportunity for timely input to potentially affected small 
governments before establishing any requirements that might 
significantly or uniquely affect them.
    DOL examined this final rule according to UMRA and its statement of 
policy and determined that the final rule does not contain a Federal 
intergovernmental mandate, nor is it expected to require expenditures 
of $100 million or more in any one year by State, local, and Tribal 
governments, in the aggregate, or by the private sector. As a result, 
the analytical requirements of UMRA do not apply.

H. Review Under the Treasury and General Government Appropriations Act, 
1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any rule that may affect family well-being. 
This final rule would not have any impact on the autonomy or integrity 
of the family as an institution. Accordingly, DOL has concluded that it 
is not necessary to prepare a Family Policymaking Assessment.

I. Review Under Executive Order 12630

    Pursuant to Executive Order 12630, ``Governmental Actions and 
Interference with Constitutionally Protected Property Rights,'' 53 FR 
8859 (Mar. 18, 1988), DOL has determined that this final rule would not 
result in any takings that might require compensation under the Fifth 
Amendment to the U.S. Constitution.

J. Review Under the Treasury and General Government Appropriations Act, 
2001

    Section 515 of the Treasury and General Government Appropriations 
Act, 2001 (44 U.S.C. 3516, note) provides for Federal agencies to 
review most disseminations of information to the public under 
information quality guidelines established by each agency pursuant to 
general guidelines issued by OMB. OMB's guidelines were published at 67 
FR 8452 (Feb. 22, 2002). DOL has reviewed this final rule under the OMB 
guidelines and has concluded that it is consistent with applicable 
policies in those guidelines.

K. Review Under Executive Order 13175

    DOL has examined this final rule and determined that it does not 
have tribal implications under Executive Order 13175 that would require 
a tribal summary impact statement. It does not ``have substantial 
direct effects on one or more Indian tribes, on the relationship 
between the Federal Government and Indian tribes, or on the 
distribution of power and responsibilities between the Federal 
Government and Indian tribes.''

L. Review Under Additional Executive Orders and Presidential Memoranda

    DOL has examined this final rule and has determined that it is 
consistent with the policies and directives outlined in Executive 
Order14173, ``Ending Illegal Discrimination and Restoring Merit-Based 
Opportunity'' (see ``Background'' discussion regarding E.O. 14173). As 
noted above, this rule is considered a deregulatory action under 
Executive Order 14192.

List of Subjects in 41 CFR Part 60-300

    Administrative practice and procedure, Civil rights, Employment, 
Equal employment opportunity, Government contracts, Government 
procurement, Investigations, Labor, Veterans.

    For the reasons set forth in the preamble, and under the authority 
of 38 U.S.C. 4212, as amended, DOL amends 41 CFR part 60-300 as set 
forth below:

PART 60-300-AFFIRMATIVE ACTION AND NONDISCRIMINATION OBLIGATIONS OF 
FEDERAL CONTRACTORS AND SUBCONTRACTORS REGARDING DISABLED VETERANS, 
RECENTLY SEPARATED VETERANS, ACTIVE DUTY WARTIME OR CAMPAIGN BADGE 
VETERANS, AND ARMED FORCES SERVICE MEDAL VETERANS

0
1. Revise the authority citation for 41 CFR Part 60-300 to read as 
follows:

    Authority: 38 U.S.C. 4211 and 4212; E.O. 11758 (3 CFR, 1971-1975 
Comp., p. 841).


0
2. Revise Sec.  60-300.1(b) to read as follows:


Sec.  60-300.1   Purpose, applicability and construction.

* * * * *
    (b) Applicability. This part applies to any Government contract or 
subcontract of $200,000 or more, entered into or modified on or after 
December 1, 2003, for the purchase, sale or use of personal property or 
nonpersonal services (including construction): Provided, that subpart C 
of this part applies only as described in Sec.  60-300.40(a); and that 
the non-discrimination protections in Sec.  60-300.21 and the right to 
file complaints alleging discriminatory conduct set forth in Sec.  60-
300.61 also apply to ``pre-JVA veterans'' as defined in Sec.  60-300.2, 
who are applicants or employees of a contractor with a Government 
contract of $25,000 or more entered into prior to December 1, 2003, and 
unmodified since to a contract amount of $200,000. Compliance by the 
contractor with the provisions of this part will not necessarily 
determine its compliance with other statutes, and compliance with other 
statutes will not necessarily determine its compliance with this part.
* * * * *

0
3. Amend Sec.  60-300.2 by revising paragraphs (f), (o), (p), and (aa) 
to read as follows:


Sec.  60-300.2   Definitions.

* * * * *
    (f) Contractor means, unless otherwise indicated, a prime 
contractor or subcontractor holding a contract of $200,000 or more.
* * * * *
    (o) Pre-JVA veteran means an individual who is an employee of or 
applicant to a contractor with a contract of $25,000 or more entered 
into prior to December 1, 2003 and unmodified since to $200,000 or 
more, and who is a special disabled veteran, veteran of the Vietnam 
era, pre-JVA recently separated

[[Page 54238]]

veteran, or other protected veteran, as defined below:
* * * * *
    (p) Prime contractor means any person holding a contract of 
$200,000 or more, and, for the purposes of subpart D of this part, 
``General Enforcement and Complaint Procedures,'' includes any person 
who has held a contract subject to the Act.
* * * * *
    (aa) Subcontractor means any person holding a subcontract of 
$200,000 or more and, for the purposes of subpart D of this part, 
``General Enforcement and Complaint Procedures,'' any person who has 
held a subcontract subject to the Act.
* * * * *

0
4. Revise Sec.  60-300.4(a) to read as follows:


Sec.  60-300.4   Coverage and waivers.

    (a) General--(1) Contracts and subcontracts of $200,000 or more. 
Contracts and subcontracts of $200,000 or more are covered by this 
part. No contracting agency or contractor shall procure supplies or 
services in less than usual quantities to avoid the applicability of 
the equal opportunity clause.
    (2) Contracts for indefinite quantities. With respect to indefinite 
delivery-type contracts (including, but not limited to, open end 
contracts, requirement-type contracts, Federal Supply Schedule 
contracts, ``call-type'' contracts, and purchase notice agreements), 
the equal opportunity clause shall be included unless the contracting 
agency has reason to believe that the amount to be ordered in any year 
under such contract will be less than $200,000. The applicability of 
the equal opportunity clause shall be determined at the time of award 
for the first year, and annually thereafter for succeeding years, if 
any. Notwithstanding the above, the equal opportunity clause shall be 
applied to such contract whenever the amount of a single order is 
$200,000 or more. Once the equal opportunity clause is determined to be 
applicable, the contract shall continue to be subject to such clause 
for its duration, regardless of the amounts ordered, or reasonably 
expected to be ordered in any year.
* * * * *

0
5. Amend Sec.  60-300.5 by revising paragraph (a)(11) to read as 
follows:


Sec.  60-300.5  Equal opportunity clause.

    (a) * * *
    (11) The contractor will include the provisions of this clause in 
every subcontract or purchase order of $200,000 or more, unless 
exempted by the rules, regulations, or orders of the Secretary issued 
pursuant to VEVRAA so that such provisions will be binding upon each 
subcontractor or vendor. The contractor will take such action with 
respect to any subcontract or purchase order as the Director, Office of 
Federal Contract Compliance Programs, may direct to enforce such 
provisions, including action for noncompliance.
* * * * *

0
6. Revise Sec.  60-300.21(g)(2) to read as follows:


Sec.  60-300.21   Prohibitions.

* * * * *
    (g) * * *
    (2) The Uniform Guidelines on Employee Selection Procedures do not 
apply to 38 U.S.C. 4212 and are similarly inapplicable to this part.
* * * * *

0
7. Revise Sec.  60-300.40(a) to read as follows:


Sec.  60-300.40  Applicability of the affirmative action program 
requirement.

    (a) The requirements of this subpart apply to every Government 
contractor that has 50 or more employees and a contract of $200,000 or 
more.
* * * * *

0
8. Revise Sec.  60-300.65 to read as follows:


Sec.  60-300.65  Enforcement proceedings.

    (a) General. (1) If a compliance evaluation, complaint 
investigation or other review by OFCCP finds a violation of the Act or 
this part, and the violation has not been corrected in accordance with 
the conciliation procedures in this part, or OFCCP determines that 
referral for consideration of formal enforcement (rather than 
settlement) is appropriate, OFCCP may refer the matter to the Solicitor 
of Labor with a recommendation for the institution of enforcement 
proceedings to enjoin the violations, to seek appropriate relief, and 
to impose appropriate sanctions, or any of the above in this sentence. 
OFCCP may seek back pay and other make whole relief for aggrieved 
individuals identified during a complaint investigation or compliance 
evaluation. Such individuals need not have filed a complaint as a 
prerequisite to OFCCP seeking such relief on their behalf. Interest on 
back pay shall be calculated from the date of the loss and compounded 
quarterly at the percentage rate established by the Internal Revenue 
Service for the underpayment of taxes.
    (2) In addition to the administrative proceedings set forth in this 
section, the Director may, within the limitations of applicable law, 
seek appropriate judicial action to enforce the contractual provisions 
set forth in Sec.  60-300.5, including appropriate injunctive relief.
    (b) Hearing practice and procedure. (1) In administrative 
enforcement proceedings the contractor shall be provided an opportunity 
for a formal hearing. All hearings conducted under the Act and this 
part shall be governed by the regulations in paragraphs (c) to (mm) of 
this section and the Rules of Evidence set out in the Rules of Practice 
and Procedure for Administrative Hearings Before the Office of 
Administrative Law Judges contained in 29 CFR part 18, subpart B: 
Provided, That a final administrative order shall be issued within one 
year from the date of the issuance of the recommended findings, 
conclusions and decision of the Administrative Law Judge, or the 
submission of exceptions and responses to exceptions to such decision 
(if any), whichever is later.
    (2) Complaints may be filed by the Solicitor, the Associate 
Solicitor for Civil Rights and Labor-Management, Regional Solicitors, 
and Associate Regional Solicitors.
    (3) [Reserved]
    (c) Applicability of rules of practice for administrative 
proceedings. The regulations at paragraphs (c) to (mm) of this section 
provide the rules of practice for all administrative proceedings that 
relate to the enforcement of the Vietnam Era Veterans' Readjustment 
Assistance Act of 1974 (VEVRAA), as amended, including but not limited 
to proceedings instituted against contractors or subcontractors covered 
by this part. In the absence of a specific provision, procedures shall 
be in accordance with the Federal Rules of Civil Procedure.
    (d) Waiver, modification. Upon notice to all parties, the 
Administrative Law Judge may, with respect to matters pending before 
him modify or waive any rule herein upon a determination that no party 
will be prejudiced and that the ends of justice will be served thereby.
    (e) Computation of time. In computing any period of time under 
these rules or in an order issued hereunder, the time begins with the 
day following the act, event, or default, and includes the last day of 
the period, unless it is a Saturday, Sunday, or legal holiday observed 
by the Federal Government in which event it includes the next business 
day.
    (f) Form, filing, service of pleadings and papers--(1) Form. The 
original of all pleadings and papers in a proceeding conducted under 
the regulations of this section shall be filed with the Administrative 
Law Judge assigned to the case or with the Chief

[[Page 54239]]

Administrative Law Judge if the case has not been assigned. Every 
pleading and paper filed in the proceeding shall contain a caption 
setting forth the name of the agency instituting the proceeding, the 
title of the action, the case file number assigned by the 
Administrative Law Judge, and a designation of the pleading or paper 
(e.g., complaint, motion to dismiss, etc.). The pleading or papers 
shall be signed and shall contain the address and telephone number of 
the person representing the party or the person on whose behalf the 
pleading or paper was filed. Unless otherwise ordered for good cause by 
the Administrative Law Judge regarding specific papers and pleadings in 
a specific case, all such papers and pleadings are public documents.
    (2) Service. Service upon any party shall be made by the party 
filing the pleading or document in accordance with 29 CFR part 26. When 
a party is represented by an attorney, the service shall be upon the 
attorney.
    (3) Proof of service. A certificate of the person serving the 
pleading or other document, setting forth the manner of service, shall 
be proof of the service.
    (g) Prehearing procedures: Administrative complaint--(1) Filing. 
The Solicitor of Labor, Associate Solicitor for Labor Relations and 
Civil Rights Regional Solicitors and Regional Attorney upon referral 
from the Office of Federal Contract Compliance Programs, are authorized 
to institute enforcement proceedings by filing a complaint and serving 
the complaint upon the contractor which shall be designated as the 
defendant. The Department of Labor, OFCCP, as shall be designated as 
the plaintiff.
    (2) Contents. The complaint shall contain a concise jurisdictional 
statement, and a clear and concise statement sufficient to put the 
defendant on notice of the acts or practices it is alleged to have 
committed in violation of the order, the regulations, or its 
contractual obligations. The complaint shall also contain a prayer 
regarding the relief being sought, a statement of whatever sanctions 
the Government will seek to impose and the name and address of the 
attorney who will represent the Government.
    (3) Amendment. The complaint may be amended once as a matter of 
course before an answer is filed, and the defendant may amend its 
answer once as a matter of course not later than 10 days after the 
filing of the original answer. Other amendments of the complaint or of 
the answer to the complaint shall be made only by leave of the 
Administrative Law Judge or by written consent of the adverse party; 
and leave shall be freely given where justice so requires. An amended 
complaint shall be answered within 14 days of its service, or within 
the time for filing an answer to the original complaint, whichever 
period is longer. An amended answer shall be responded to within 14 
days of its service.
    (h) Prehearing procedures: Answer--(1) Filing and service. Within 
20 days after the service of the complaint, the defendant shall file an 
answer with the Chief Administrative Law Judge if the case has not been 
assigned to an Administrative Law Judge. The answer shall be signed by 
the defendant or its attorney and served on the Government in 
accordance with paragraph (f)(2) of this section.
    (2) Contents; failure to file. The answer shall:
    (i) Contain a statement of the facts which constitute the grounds 
of defense, and shall specifically admit, explain, or deny, each of the 
allegations of the complaint unless the defendant is without knowledge, 
in which case the answer shall so state; or
    (ii) State that the defendant admits all the allegations of the 
complaint. The answer may contain a waiver of hearing; and if not, a 
separate paragraph in the answer shall request a hearing. The answer 
shall contain the name and address of the defendant, or of the attorney 
representing the defendant. Failure to file an answer or to plead 
specifically to any allegation of the complaint shall constitute an 
admission of such allegation.
    (3) Procedure, upon admission of facts. The admission, in the 
answer or by failure to file an answer, of all the material allegations 
of fact contained in the complaint shall constitute a waiver of 
hearing. Upon such admission, the Administrative Law Judge, without 
further hearing, may prepare his decision in which he shall adopt as 
his proposed findings of fact the material facts alleged in the 
complaint. The parties shall be given an opportunity to file exceptions 
to his decision and to file briefs in support of the exceptions.
    (i) Prehearing procedures: Notice of prehearing conference. The 
Administrative Law Judge shall respond to defendant's request for a 
hearing within 15 days and shall serve a notice of prehearing 
conference on the parties. The notice shall contain the time and place 
of the conference.
    (j) Prehearing procedures: Motions; disposition of motions--(1) 
Motions. Motions shall state the relief sought, the authority relied 
upon and the facts alleged, and shall be filed with the Administrative 
Law Judge. If made before or after the hearing itself, the motions 
shall be in writing. If made at the hearing, motions may be stated 
orally; but the Administrative Law Judge may require that they be 
reduced to writing and filed and served on all parties in the same 
manner as a formal motion. Unless otherwise ordered by the 
Administrative Law Judge, written motions shall be accompanied by a 
supporting memorandum. Within 10 days after a written motion is served, 
or such other time period as may be fixed, any party may file a 
response to a motion.
    (2) Disposition of motions. The Administrative Law Judge may not 
grant a written motion prior to expiration of the time for filing 
responses thereto, except upon consent of the parties or following a 
hearing, but may overrule or deny such motion without awaiting 
response: Provided, That prehearing conferences, hearings, and 
decisions need not be delayed pending disposition of motions.
    (k) Prehearing procedures: Interrogatories and admissions as to 
facts and documents--(1) Interrogatories. Not later than 25 days prior 
to the date of the hearing, except for good cause shown, or not later 
than 14 days prior to such earlier date as the Administrative Law Judge 
may order, any party may serve upon an opposing party written 
interrogatories. Each interrogatory shall be answered separately and 
fully in writing under oath, unless objected to. Answers are to be 
signed by the person making them and objections by the attorney or by 
whoever is representing the party. Answers and objections shall be 
filed and served within 25 days of service of the interrogatory.
    (2) Admissions. Not later than 14 days prior to the date of the 
hearing, except for good cause shown, or not later than 14 days prior 
to such earlier date as the Administrative Law Judge may order, any 
party may serve upon an opposing party a written request for the 
admission of the genuineness and authenticity of any relevant documents 
described in and exhibited with the request, or for the admission of 
the truth of any relevant matters of fact stated in the request. Each 
of the matters as to which an admission is requested shall be deemed 
admitted, unless within 25 days after service, the party to whom the 
request is directed serves upon the requesting party a sworn statement 
either:
    (i) Denying specifically the matter as to which an admission is 
requested; or
    (ii) Setting forth in detail the reasons why he cannot truthfully 
either admit or deny such matters.

[[Page 54240]]

    (3) Objections or failures to respond. The party submitting the 
interrogatory or request may move for an order with respect to any 
objection or other failure to respond.
    (l) Prehearing procedures: Production of documents and things and 
entry upon land for inspection and other purposes. (1) After 
commencement of the action, any party may serve on any other party a 
request to produce and/or permit the party, or someone acting on his 
behalf, to inspect and copy any unprivileged documents, phonorecords, 
and other compilations, including computer tapes and printouts which 
contain or may lead to relevant information and which are in the 
possession, custody, or control of the party upon whom the request is 
served. If necessary, translation of data compilations shall be done by 
the party furnishing the information.
    (2) After commencement of the action, any party may serve on any 
other party a request to permit entry upon designated property which 
may be relevant to the issues in the proceeding and, which is in the 
possession or control of the party upon whom the request is served for 
the purpose of inspection, measuring, surveying or photographing, 
testing, or sampling the property or any designated object or area.
    (3) Each request shall set forth with reasonable particularity the 
items to be inspected and shall specify a reasonable time and place for 
making the inspection and performing the related acts.
    (4) The party upon whom the request is served shall respond within 
25 days after the service of the request. The response shall state, 
with respect to each item, that inspection and related activities will 
be permitted as requested, unless there are objections, in which case 
the reasons for each objection shall be stated. The party submitting 
the request may move for an order with respect to any objection or to 
other failure to respond.
    (m) Prehearing procedures: Depositions upon oral examination.--(1) 
Depositions; notice of examination. After commencement of the action, 
any party may take the testimony of any person, including a party, 
having personal or expert knowledge of the matters in issue, by 
deposition upon oral examination. A party desiring to take a deposition 
shall give reasonable notice in writing to every other party to the 
proceeding, and may use an administrative subpoena. The notice shall 
state the time and place for taking the deposition and the name and 
address of each person to be examined, if known, and, if the name is 
not known, a general description sufficient to identify him or the 
particular class or group to which he belongs. The notice shall also 
set forth the categories of documents the witness is to bring with him 
to the deposition, if any. A copy of the notice shall be furnished to 
the person to be examined unless his name is unknown.
    (2) Production of witnesses; obligation of parties; objections. It 
shall be the obligation of each party to produce for examination any 
person, along with such documents as may be requested, at the time and 
place, and on the date, set forth in the notice, if that party has 
control over such person. Each party shall be deemed to have control 
over its officers, agents, employees, and members. Unless the parties 
agree otherwise, depositions shall be held within the county in which 
the witness resides or works. The party or prospective witness may file 
with the Administrative Law Judge an objection within 5 days after 
notice of production of such witness is served, stating with 
particularity the reasons why the party cannot or ought not to produce 
a requested witness. The party serving the notice may move for an order 
with respect to such objection or failure to produce a witness. All 
errors or irregularities in compliance with the provisions of this 
section shall be deemed waived unless a motion to suppress the 
deposition or some part thereof is made with reasonable promptness 
after such defect is or, with due diligence, might have been 
ascertained.
    (3) Before whom taken; scope of examination; failure to answer. 
Depositions may be taken before any officer authorized to administer 
oaths by the laws of the United States or of the place where the 
deposition is held. At the time and place specified in the notice, each 
party shall be permitted to examine and cross-examine the witness under 
oath upon any matter which is relevant to the subject matter of the 
proceeding, or which is reasonably calculated to lead to the production 
of relevant and otherwise admissible evidence. All objections to 
questions, except as to the form thereof, and all objections to 
evidence are reserved until the hearing. A refusal or failure on the 
part of any person under the control of a party to answer a question 
shall operate to create a presumption that the answer, if given, would 
be unfavorable to the controlling party, unless the question is 
subsequently ruled improper by the Administrative Law Judge or the 
Administrative Law Judge rules that there was valid justification for 
the witness' failure or refusal to answer the question: Provided, That 
the examining party shall note on the record during the deposition the 
question which the deponent has failed, or refused to answer, and state 
his intention to invoke the presumption if no answer is forthcoming.
    (4) Subscription; certification; filing. The testimony shall be 
reduced to typewriting, either by the officer taking the deposition or 
under his direction, and shall be submitted to the witness for 
examination and signing. If the deposition is not signed by the witness 
because he is ill, dead, cannot be found, or refuses to sign it, such 
fact shall be noted in the certificate of the officer and the 
deposition may then be used as fully as though signed. The officer 
shall immediately deliver the original copy of the transcript, together 
with his certificate, in person or by mail to the Administrative Law 
Judge. Copies of the transcript and certificate shall be furnished to 
all persons desiring them, upon payment of reasonable charges, unless 
distribution is restricted by order of the Administrative Law Judge for 
good cause shown.
    (5) Rulings on admissibility; use of deposition. Subject to the 
provisions of this section, objection may be made at the hearing to 
receiving in evidence any deposition or part thereof for any reason 
which would require the exclusion of the evidence if the witness were 
then present and testifying. Any part or all of a deposition, so far as 
admissible in the discretion of the Administrative Law Judge, may be 
used against any party who was present or represented at the taking of 
the deposition or who had reasonable notice, in accordance with the 
following provisions:
    (i) Any deposition may be used by any party for the purpose of 
contradicting or impeaching the testimony of the deponent as a witness.
    (ii) The deposition of a party or of any one who at the time of 
taking the deposition was an officer, director, or managing agent, or 
was designated to testify on behalf of a public or private corporation, 
partnership, association, or governmental agency which is a party may 
be used by the adverse party for any purpose.
    (iii) The deposition of a witness, whether or not a party, may be 
used by any party for any purpose if the administrative law judge 
finds:
    (A) That the witness is dead; or
    (B) that the witness is unable to attend or testify because of age, 
illness, infirmity, or imprisonment; or
    (C) that the party offering the deposition has been unable to 
procure

[[Page 54241]]

the attendance of the witness by subpoena; or
    (D) upon application and notice, that such exceptional 
circumstances exist as to make it desirable to allow the deposition to 
be used.
    (iv) If only part of a deposition is introduced in evidence by a 
party, any party may introduce any other parts by way of rebuttal and 
otherwise.
    (6) Stipulations. If the parties so stipulate in writing, 
depositions may be taken before any person at any time or place, upon 
any notice and in any manner, and when so taken may be used like other 
depositions.
    (n) Prehearing procedures: Prehearing conferences. (1) Upon his own 
motion or the motion of the parties, the Administrative Law Judge may 
direct the parties or their counsel to meet with him for a conference 
to consider:
    (i) Simplification of the issues;
    (ii) Necessity or desirability of amendments to pleadings for 
purposes of clarification, simplification, or limitation;
    (iii) Stipulations, admissions of fact and of contents and 
authenticity of documents;
    (iv) Limitation of number of witnesses;
    (v) Scheduling dates for the exchange of witness lists and of 
proposed exhibits;
    (vi) Such other matters as may tend to expedite the disposition of 
the proceedings.
    (2) The record shall show the matters disposed of by order and by 
agreement in such pretrial conferences. The subsequent course of the 
proceeding shall be controlled by such action.
    (o) Prehearing procedures: Consent findings and order--(1) General. 
At any time after the issuance of a complaint and prior to or during 
the reception of evidence in any proceeding, the parties may jointly 
move to defer the receipt of any evidence for a reasonable time to 
permit negotiation of an agreement containing consent findings and an 
order disposing of the whole or any part of the proceeding. The 
allowance of such deferment and the duration thereof shall be in the 
discretion of the Administrative Law Judge after consideration of the 
nature of the proceeding, the requirements of the public interest, the 
representations of the parties, and the probability of an agreement 
being reached which will result in a just disposition of the issues 
involved.
    (2) Content. Any agreement containing consent findings and an order 
disposing of a proceeding shall also provide:
    (i) That the order shall have the same force and effect as an order 
made after full hearing;
    (ii) That the entire record on which any order may be based shall 
consist solely of the complaint and the agreement;
    (iii) That any further procedural steps are waived; and
    (iv) That any right to challenge or contest the validity of the 
findings and order entered into in accordance with the agreement is 
waived.
    (3) Submission. On or before the expiration of the time granted for 
negotiations, the parties or their counsel may:
    (i) Submit the proposed agreement to the Administrative Law Judge 
for his consideration;
    (ii) Inform the Administrative Law Judge that agreement cannot be 
reached.
    (4) Disposition. In the event an agreement containing consent 
findings and an order is submitted within the time allowed, the 
Administrative Law Judge, within 30 days, shall accept such agreement 
by issuing his decision based upon the agreed findings, and his 
decision shall constitute the final Administrative order.
    (p) Hearings and Related Matters: Designation of Administrative Law 
Judges. Hearings shall be held before an Administrative Law Judge of 
the Department of Labor who shall be designated by the Chief 
Administrative Law Judge of the Department of Labor. After commencement 
of the proceeding but prior to the designation of an Administrative Law 
Judge, pleadings and papers shall be filed with the Chief 
Administrative Law Judge.
    (q) Hearings and Related Matters: Authority and responsibilities of 
Administrative Law Judges. The Administrative Law Judge shall propose 
findings and conclusions to the Secretary on the basis of the record. 
In order to do so, he shall have the duty to conduct a fair hearing, to 
take all necessary action to avoid delay, and to maintain order. He 
shall have all powers necessary to those ends, including, but not 
limited to, the power to:
    (1) Hold conferences to settle, simplify, or fix the issues in a 
proceeding, or to consider other matters that may aid in the 
expeditious disposition of the proceeding by consent of the parties or 
upon his own motion;
    (2) Require parties to state their position with respect to the 
various issues in the proceeding;
    (3) Require parties to produce for examination those relevant 
witnesses and documents under their control; and require parties to 
answer interrogatories and requests for admissions in full;
    (4) Administer oaths;
    (5) Rule on motions, and other procedural items or matters pending 
before him;
    (6) Regulate the course of the hearing and conduct of participants 
therein;
    (7) Examine and cross-examine witnesses, and introduce into the 
record documentary or other evidence;
    (8) Receive, rule on, exclude, or limit evidence and limit lines of 
questioning or testimony which are irrelevant, immaterial, or unduly 
repetitious;
    (9) Fix time limits for submission of written documents in matters 
before him and extend any time limits established by this part upon a 
determination that no party will be prejudiced and that the ends of 
justice will be served thereby;
    (10) Impose appropriate sanctions against any party or person 
failing to obey an order under these rules which may include:
    (i) Refusing to allow the disobedient party to support or oppose 
designated claims or defenses, or prohibiting it from introducing 
designated matters in evidence;
    (ii) Excluding all testimony of an unresponsive or evasive witness, 
or determining that the answer of such witness, if given, would be 
unfavorable to the party having control over him; and
    (iii) Expelling any party or person from further participation in 
the hearing;
    (11) Take official notice of any material fact not appearing in 
evidence in the record, which is among the traditional matters of 
judicial notice;
    (12) Recommend whether the respondent is in current violation of 
the order, regulations, or its contractual obligations, as well as the 
nature of the relief necessary to insure the full enjoyment of the 
rights secured by the order;
    (13) Issue subpoenas; and
    (14) Take any action authorized by these rules.
    (r) Hearings and Related Matters: Appearances--(1) Representation. 
The parties or other persons or organizations participating pursuant to 
this section have the right to be represented by counsel.
    (2) Failure to appear. In the event that a party appears at the 
hearing and no party appears for the opposing side, the party who is 
present shall have an election to present his evidence in whole or such 
portion thereof sufficient to make a prima facie case before the 
Administrative Law Judge. Failure to appear at the hearing shall not be 
deemed to be a waiver of the right to be served with a copy of the

[[Page 54242]]

Administrative Law Judge's recommended decision and to file exceptions 
to it.
    (s) Hearings and Related Matters: Appearance of witnesses. (1) A 
party wishing to procure the appearance at the hearing of any person 
having personal or expert knowledge of the matters in issue shall serve 
on the prospective witness a notice, which may be accomplished by an 
administrative subpoena, setting forth the time, date, and place at 
which he is to appear for the purpose of giving testimony. The notice 
shall also set forth the categories of documents the witness is to 
bring with him to the hearing, if any. A copy of the notice shall be 
filed with the Administrative Law Judge and additional copies shall be 
served upon the opposing parties.
    (2) It shall be the obligation of each party to produce for 
examination any person, along with such documents as may be requested, 
at the time and place, and on the date, set forth in the notice, if 
that party has control over such person. Each party shall be deemed to 
have control over its officers, agents, employees, and members. Due 
regard shall be given to the convenience of witnesses in scheduling 
their testimony so that they will be detained no longer than reasonably 
necessary.
    (3) The party or prospective witness may file an objection within 5 
days after notice of production of such witness is served stating with 
particularity the reasons why the party cannot produce a requested 
witness. The party serving the notice may move for an order with 
respect to such objection or failure to produce a witness.
    (t) Hearings and Related Matters: Rules of evidence. In any 
hearing, decision, or administrative review conducted pursuant to this 
part, all evidentiary matters shall be governed by Office of 
Administrative Law Judges' Rules of evidence at 29 CFR part 18, subpart 
B, Provided however, That the provision at 29 CFR 18.1104 which delays 
the effective date of the rule with respect to certain investigations 
does not apply.
    (u) Hearings and Related Matters: Objections; exceptions; offer of 
proof--(1) Objections. If a party objects to the admission or rejection 
of any evidence or to the limitation of the scope of any examination or 
cross-examination or the failure to limit such scope, he shall state 
briefly the grounds for such objection. Rulings on all objections shall 
appear in the record. Only objections made on the record may be relied 
upon subsequently in the proceedings.
    (2) Exceptions. Formal exception to an adverse ruling is not 
required. Rulings by the Administrative Law Judge shall not be appealed 
prior to the transfer of the case to the Secretary, but shall be 
considered by the Secretary upon filing exceptions to the 
Administrative Law Judge's recommendations and conclusions.
    (3) Offer of proof. An offer of proof made in connection with an 
objection taken to any ruling excluding proffered oral testimony shall 
consist of a statement of the substance of the evidence which counsel 
contends would be adduced by such testimony; and, if the excluded 
evidence consists of evidence in written form or consists of reference 
to documents, a copy of such evidence shall be marked for 
identification and shall accompany the record as the offer of proof.
    (v) Hearings and Related Matters: Ex parte communications. The 
Administrative Law Judge shall not consult any person, or party, on any 
fact in issue unless upon notice and opportunity for all parties to 
participate. No employee or agent of the Federal Government engaged in 
the investigation and prosecution of this case shall participate or 
advise in the rendering of the recommended or final decision in the 
case, except as witness or counsel in the proceeding.
    (w) Hearings and Related Matters: Oral argument. Any party shall be 
entitled upon request to a reasonable period between the close of 
evidence and termination of the hearing for oral argument. Oral 
arguments shall be included in the official transcript of the hearing.
    (x) Hearings and Related Matters: Official transcript. The official 
transcripts of testimony taken, together with any exhibits, briefs, or 
memorandums of law, shall be filed with the Administrative Law Judge. 
Transcripts of testimony may be obtained from the official reporter by 
the parties and the public as provided in section 11(a) of the Federal 
Advisory Committee Act (86 Stat. 770). Upon notice to all parties, the 
Administrative Law Judge may authorize such corrections to the 
transcript as are necessary to reflect accurately the testimony.
    (y) Hearings and Related Matters: Summary judgment--(1) For the 
Government. At any time after the expiration of 20 days from the 
commencement of the action, or after service of a motion for summary 
judgment by the respondent, the Government may move with or without 
supporting affidavits for a summary judgment upon all claims or any 
part.
    (2) For defendant. The defendant may, at any time after 
commencement of the action, move with or without supporting affidavits 
for summary judgment in its favor as to all claims or any part.
    (3) Other parties. Any other party to a formal proceeding under 
this part may support or oppose motions for summary judgment made by 
the Government or respondent, in accordance with this section, but may 
not move for a summary judgment in his own behalf.
    (4) Statement of uncontested facts. All motions for summary 
judgment shall be accompanied by a ``Statement of Uncontested Facts'' 
in which the moving party sets forth all alleged uncontested material 
facts which shall provide the basis for its motion. At least 5 days 
prior to the time fixed for hearing on the motion, any party contending 
that any material fact regarding the matter covered by the motion is in 
dispute, shall file a ``Statement of Disputed Facts.'' Failure to file 
a ``Statement of Disputed Facts'' shall be deemed as an admission to 
the ``Statement of Uncontested Facts.''
    (5) Motion and proceedings. The motion shall be served upon all 
parties at least 15 days before the time fixed for the hearing on the 
motion. The adverse party or parties may serve opposing affidavits 
prior to the day of hearing. The judgment sought shall be rendered 
forthwith if the complaint and answer, depositions, and admissions on 
file, together with the affidavits, if any, show that there is no 
genuine issue as to any material fact and that the moving party is 
entitled to a judgment as a matter of law. Summary judgment rendered 
for or against the Government or the respondent shall constitute the 
findings and recommendations on the issues involved. Hearings on 
motions made under this section shall be scheduled by the 
Administrative Law Judge.
    (6) Case not fully adjudicated on motion. If on motion under this 
section judgment is not rendered upon the whole case or for all the 
relief asked and a final hearing is necessary, the Administrative Law 
Judge at the hearing of the motion, by examining the notice and answer 
and the evidence before him and by interrogating counsel, shall, if 
practicable, ascertain what material facts exist without substantial 
controversy and what material facts are actually and in good faith 
controverted. He shall thereupon make an order specifying the facts 
that appear without substantial controversy, including the extent to 
which relief is not in controversy, and directing such further 
proceedings as are just. At the hearing on the merits, the facts so 
specified shall be deemed established, and the final hearing shall be 
conducted accordingly.

[[Page 54243]]

    (z) Hearings and Related Matters: Participation by interested 
persons--(1) To the extent that proceedings hereunder involve 
employment of persons covered by a collective bargaining agreement, and 
compliance may necessitate a revision of such agreement, any labor 
organization which is a signatory to the agreement shall have the right 
to participate as a party.
    (2) Other persons or organizations shall have the right to 
participate as parties if the final Administrative order could 
adversely affect them or the class they represent, and such 
participation may contribute materially to the proper disposition of 
the proceedings.
    (3) Any person or organization wishing to participate as a party 
under this section shall file with the Administrative Law Judge and 
serve on all parties a petition within 25 days after the commencement 
of the action or at such other time as ordered by the Administrative 
Law Judge, so long as it does not disrupt the proceeding. Such petition 
shall concisely state:

    (i) Petitioner's interest in the proceedings;
    (ii) who will appear for petitioner;
    (iii) the issues on which petitioner wishes to participate; and
    (iv) whether petitioner intends to present witnesses.

    (4) The Administrative Law Judge shall determine whether each 
petitioner has the requisite interest in the proceedings and shall 
permit or deny participation accordingly. Where petitions to 
participate as parties are made by individuals or groups with common 
interest, the Administrative Law Judge may request all such petitioners 
to designate a single representative to represent all such petitioners: 
Provided, That the representative of a labor organization qualifying to 
participate under paragraph (z)(1) of the section must be permitted to 
participate in the proceedings. The Administrative Law Judge shall give 
each petitioner written notice of the decision on his petition; and if 
the petition is denied, he shall briefly state the grounds for denial 
and shall then treat the petition as a request for participation as 
amicus curiae. The Administrative Law Judge shall give written notice 
to each party of each petition granted.
    (5) Any other interested person or organization wishing to 
participate as amicus curiae shall file a petition before the 
commencement of the final hearing with the Administrative Law Judge. 
Such petition shall concisely state:

    (i) The petitioner's interest in the hearing;
    (ii) who will represent the petitioner; and
    (iii) the issues on which petitioner intends to present 
argument. The Administrative Law Judge may grant the petition if he 
finds that the petitioner has a legitimate interest in the 
proceedings, and that such participation may contribute materially 
to the proper disposition of the issues. An amicus curiae is not a 
party but may participate as provided in this section.

    (6) An amicus curiae may present a brief oral statement at the 
hearing at the point in the proceeding specified by the Administrative 
Law Judge. He may submit a written statement of position to the 
Administrative Law Judge prior to the beginning of a hearing and shall 
serve a copy on each party. He may also submit a brief or written 
statement at such time as the parties submit briefs and exceptions, and 
he shall serve a copy on each party.
    (aa) Post-Hearing Procedures: Proposed findings of fact and 
conclusions of law. Within 20 days after receipt of the transcript of 
the testimony, each party and amicus may file a brief. Such briefs 
shall be served simultaneously on all parties and amici, and a 
certificate of service shall be furnished to the Administrative Law 
Judge. Requests for additional time in which to file a brief shall be 
made in writing, and copies shall be served simultaneously on the other 
parties. Requests for extensions shall be received not later than 3 
days before the date such briefs are due. No reply brief may be filed 
except by special permission of the Administrative Law Judge.
    (bb) Post-Hearing Procedures: Record for recommended decision. The 
transcript of testimony, exhibits, and all papers, documents, and 
requests filed in the proceedings, including briefs, but excepting the 
correspondence section of the docket, shall constitute the record for 
decision.
    (cc) Post-Hearing Procedures: Recommended decision. Within a 
reasonable time after the filing of briefs, the Administrative Law 
Judge shall recommend findings, conclusions, and a decision. These 
recommendations shall be certified, together with the record for 
recommended decision, to the Administrative Review Board, United States 
Department of Labor, for a final Administrative order. The recommended 
findings, conclusions, and decision shall be served on all parties and 
amici to the proceeding.
    (dd) Post-Hearing Procedures: Exceptions to recommended decisions. 
Within 14 days after receipt of the recommended findings, conclusions, 
and decision, any party may submit exceptions to said recommendation. 
These exceptions may be responded to by other parties within 14 days of 
their receipt by said parties. All exceptions and responses shall be 
filed with the Administrative Review Board, United States Department of 
Labor. Service of such briefs or exceptions and responses shall be made 
simultaneously on all parties to the proceeding. Requests to the 
Administrative Review Board, United States Department of Labor, for 
additional time in which to file exceptions and responses shall be in 
writing and copies shall be served simultaneously on other parties. 
Requests for extensions must be received no later than 3 days before 
the exceptions are due.
    (ee) Post-Hearing Procedures: Record. After expiration of the time 
for filing briefs and exceptions, the Administrative Review Board, 
United States Department of Labor, shall make a decision, which shall 
be the Administrative order, on the basis of the record. The record 
shall consist of the record for recommended decision, the rulings and 
recommended decision of the Administrative Law Judge and the exceptions 
and briefs filed subsequent to the Administrative Law Judge's decision.
    (ff) Post-Hearing Procedures: Administrative Order. After 
expiration of the time for filing, the Administrative Review Board, 
United States Department of Labor, shall make a decision which shall be 
served on all parties. If the Administrative Review Board, United 
States Department of Labor, concludes that the defendant has violated 
VEVRAA, the equal opportunity clause, or the regulations, an 
Administrative Order shall be issued enjoining the violations, and 
requiring the contractor to provide whatever remedies are appropriate, 
and imposing whatever sanctions are appropriate, or any of the above. 
In any event, failure to comply with the Administrative Order shall 
result in the immediate cancellation, termination, and suspension of 
the respondent's contracts and/or debarment of the respondent from 
further contracts.
    (gg) Expedited Hearing Procedures: Expedited hearings--when 
appropriate. Expedited Hearings may be used, inter alia, when a 
contractor or subcontractor has violated a conciliation agreement; has 
not adopted and implemented an acceptable affirmative action program; 
has refused to give access to or to supply records or other information 
as required by the equal opportunity clause; or has refused to allow an 
on-site compliance review to be conducted.
    (hh) Expedited Hearing Procedures: Administrative complaint and 
answer. (1) Expedited hearings shall be

[[Page 54244]]

commenced by filing an administrative complaint in accordance with 
paragraph (g) of this section. The complaint shall state that the 
hearing is subject to these expedited hearing procedures.
    (2) The answer shall be filed in accordance with paragraphs (h)(1) 
and (2) of this section.
    (3) Failure to request a hearing within the 20 days provided by 
paragraph (h)(1) of this section shall constitute a waiver of hearing, 
and all the material allegations of fact contained in the complaint 
shall be deemed to be admitted. If a hearing is not requested or is 
waived, within 25 days of the complaint's filing, the Administrative 
Law Judge shall adopt as findings of fact the material facts alleged in 
the complaint, and shall order the appropriate sanctions and/or 
penalties sought in the complaint. The Administrative Law Judge's 
findings and order shall constitute a final Administrative order, 
unless the Office of the Solicitor, U.S. Department of Labor, files 
exceptions to the findings and order within 10 days of receipt thereof. 
If the Office of the Solicitor, U.S. Department of Labor, files 
exceptions, the matter shall proceed in accordance with paragraph (ll) 
of this section.
    (4) If a request for a hearing is received within 20 days as 
provided by paragraph (h)(1) of this section, the hearing shall be 
convened within 45 days of receipt of the request and shall be 
completed within 15 days thereafter, unless more hearing time is 
required.
    (ii) Discovery. (1) Any party may serve requests for admissions in 
accordance with paragraphs (k)(2) and (3) of this section.
    (2) Witness lists and hearing exhibits will be exchanged at least 
10 days in advance of the hearing.
    (3) For good cause shown, and upon motion made in accordance with 
paragraph (j) of this section, the Administrative Law Judge may allow 
the taking of depositions. Other discovery will not be permitted.
    (jj) Conduct of hearing. (1) At the hearing, the Government shall 
be given an opportunity to demonstrate the basis for the request for 
sanctions and/or remedies, and the contractor shall be given an 
opportunity to show that the violation complained of did not occur and/
or that good cause or good faith efforts excuse the alleged violations. 
Both parties shall be allowed to present evidence and argument and to 
cross-examine witnesses.
    (2) The hearing shall be informal in nature, and the Administrative 
Law Judge shall not be bound by formal rules of evidence.
    (kk) Recommended decision after hearing. Within 15 days after the 
hearing is concluded, the Administrative Law Judge shall recommend 
findings, conclusions, and a decision. The Administrative Law Judge may 
permit the parties to file written post-hearing briefs within this time 
period, but the Administrative Law Judge's recommendations shall not be 
delayed pending receipt of such briefs. These recommendations shall be 
certified, together with the record, to the Administrative Review 
Board, United States Department of Labor, for a final Administrative 
order. The recommended decision shall be served on all parties and 
amici to the proceeding.
    (ll) Exceptions to recommendations. Within 10 days after receipt of 
the recommended findings, conclusions and decision, any party may 
submit exceptions to said recommendations. Exceptions may be responded 
to by other parties within 7 days after receipt by said parties of the 
exceptions. All exceptions and responses shall be filed with the 
Administrative Review Board, United States Department of Labor. Briefs 
or exceptions and responses shall be served simultaneously on all 
parties to the proceeding.
    (mm) Final Administrative Order. After expiration of the time for 
filing exceptions, the Administrative Review Board, United States 
Department of Labor, shall issue an Administrative Order which shall be 
served on all parties. Unless the Administrative Review Board, United 
States Department of Labor, issues an Administrative Order within 30 
days after the expiration of the time for filing exceptions, the 
Administrative Law Judge's recommended decision shall become a final 
Administrative Order which shall become effective on the 31st day after 
expiration of the time for filing exceptions. Except as to specific 
time periods required in this paragraph (mm), paragraph (ff) of this 
section shall be applicable.

0
9. Revise Sec.  60-300.80(a) to read as follows:


Sec.  60-300.80  Recordkeeping.

    (a) General requirements. Except as set forth in paragraph (b) of 
this section, any personnel or employment record made or kept by the 
contractor shall be preserved by the contractor for a period of two 
years from the date of the making of the record or the personnel action 
involved, whichever occurs later. However, if the contractor has fewer 
than 150 employees or does not have a Government contract of at least 
$200,000, the minimum record retention period will be one year from the 
date of the making of the record or the personnel action involved, 
whichever occurs later, except as set forth in paragraph (b) of this 
section. Such records include, but are not necessarily limited to, 
records relating to requests for reasonable accommodation; the results 
of any physical examination; job advertisements and postings; 
applications and resumes; tests and test results; interview notes; and 
other records having to do with hiring, assignment, promotion, 
demotion, transfer, lay-off or termination, rates of pay or other terms 
of compensation, and selection for training or apprenticeship. In the 
case of involuntary termination of an employee, the personnel records 
of the individual terminated shall be kept for a period of two years 
from the date of the termination, except that contractors that have 
fewer than 150 employees or do not have a Government contract of at 
least $200,000 shall keep such records for a period of one year from 
the date of the termination. Where the contractor has received notice 
that a complaint of discrimination has been filed, that a compliance 
evaluation has been initiated, or that an enforcement action has been 
commenced, the contractor shall preserve all personnel records relevant 
to the complaint, compliance evaluation or action until final 
disposition of the complaint, compliance evaluation or action. The term 
personnel records relevant to the complaint, compliance evaluation or 
action would include, for example, personnel or employment records 
relating to the aggrieved person and to all other employees holding 
positions similar to that held or sought by the aggrieved person, and 
application forms or test papers completed by an unsuccessful applicant 
and by all other candidates for the same position as that for which the 
aggrieved person applied and was rejected.
* * * * *

    Dated: August 19, 2026.
Kenneth Wolfe,
Director, Office of Federal Contract Compliance Programs.
[FR Doc. 2026-17116 Filed 8-20-26; 8:45 am]
BILLING CODE 4510-CM-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>