Compliance Concerns

New federal rules encourage federal contractors to hire more veterans and people with disabilities. But as contractors prepare to comply with the rules, a debate rages on over just how challenging compliance will be. The US Department of Labor's Office of Federal Contract Compliance Programs issued two final rules in late August. The new rules update the affirmative action and other compliance requirements under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. In general, the rules encourage contractors to hire a set percentage of veterans and people with disabilities without setting quotas. Section 503 of the Rehabilitation Act prohibits federal contractors and subcontractors from discriminating in employment against individuals with disabilities. Contractors are required to take affirmative action to recruit, hire, promote and retain these veterans.