The Department of Labor released two final rules aimed at improving the hiring and employment of disabled individuals and veterans. The rules amend the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) and Section 503 of the Rehabilitation Act of 1973. Both rules impact employers who engage in federal contracting.
VEVRAA prohibits federal contractors and subcontractors from discriminating against veterans and places responsibilities on such employers to actively recruit, hire, promote and retain veterans. The new rule gives some substance to VEVRAA by requiring contractors to establish annual hiring benchmarks for protected veterans. The rule provides two methods for establishing benchmarks. The rule also adds a data collection requirement, along with a requirement to offer employees and job applicants the opportunity to self-identify veteran status.
Section 503 prohibits federal contractors and subcontractors from discriminating against individuals with disabilities and places responsibilities on such employers to actively recruit, hire, promote and retain disabled individuals. The new rule establishes a 7% utilization goal for individuals with disabilities, and employers will have to apply the 7% goal to each job group (or employer-wide if less than 100 employees). An annual analysis and action plan is required. The new rule also requires data collection and the opportunity to self-identify.
Employers with federal contracts should be aware of the new requirements and be prepared to show compliance in their affirmative action programs.
