Federal Acquisition Regulatory Council (FAR) has updated the jurisdictional thresholds for coverage under affirmative action laws for federal contractors and subcontractors. The regulations have not been amended, but an inflationary adjustment statute applicable to the Section 503 of the Rehabilitation Act of 1973 (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) regulations allows the FAR to adjust the jurisdictional thresholds periodically for inflation. The Section 503 basic coverage threshold was increased from $10,000 to $15,000, and the VEVRAA basic coverage threshold was increased from $100,000 to $150,000. This could result in some contractors and subcontractors no longer being covered by affirmative action laws; however, the thresholds remain so low that it is unlikely to affect many contractors.

The basic coverage levels and coverage levels triggering the obligation to create an affirmative action plan are listed below:

EO 11246

  • Basic coverage: any number of employees + total contracts of $10,000 or more
  • Requirement to create an affirmative action plan: 50 employees + total contracts of $50,000 or more

Section 503

  • Basic coverage: any number of employees + a single contract of $15,000 or more
  • Requirement to create an affirmative action plan: 50 employees + a single contract of $50,000 or more

VEVRAA

  • Basic coverage: any number of employees + a single contract of $150,000 or more
  • Requirement to create an affirmative action plan: 50 employees + a single contract of $150,000 or more

OFCCP has released an infographic designed to explain jurisdictional thresholds to federal contractors and subcontractors.