In a move the Agency reported is designed to maintain healthcare access for active and retired service members and their families, the Office of Federal Contract Compliance Programs (OFCCP) has announced a two-year extension to the enforcement moratorium for Veterans Affairs Health Benefits Program (VAHBP) providers. This extension, effective June 11, 2025, will now run through May 7, 2027.

The extended moratorium continues to suspend the enforcement of VAHBP providers’ requirement to take affirmative steps to ensure equal opportunity without regard to disability or protected veteran status, obligations typically required of federal contractors and subcontractors. Additionally, VAHBP providers will not be subject to neutral scheduling for compliance evaluations during this period – though all evaluations are currently being held in abeyance.

Presently, the OFCCP retains authority to investigate discrimination complaints filed under Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). However, given the current administration’s focus on deregulation and the recent proposed budget that would effectively eliminate the OFCCP, this moratorium extension likely reflects the need to address the previous May 2025 expiration date, rather than an indication that the agency is ramping up its activities.

This extension represents the latest in a series of actions dating back to 2014, when the OFCCP first limited its enforcement activities for TRICARE subcontractors in an effort to balance regulatory requirements and veterans’ access to healthcare, allowing for more time to consider stakeholder feedback. The moratorium was later expanded to include VAHBP providers. Effective August 31 2020, OFCCP’s final rule established that it does not have authority over TRICARE providers. The current moratorium extension provides additional time for the OFCCP to develop sub-regulatory guidance specifically addressing VAHBP providers.

While the extension offers some regulatory relief, VAHBP providers must remain aware that the moratorium does not exempt them from nondiscrimination obligations.

We will continue to monitor OFCCP developments and administrative activities for updates. If you have questions about this extension and how it may affect your organization, please contact a Jackson Lewis attorney for guidance.

Tags: OFCCP, Office of Federal Contract Compliance Programs, TRICARE, VAHBP Moritorium, veterans, Veterans Affairs Health Benefits Program (VAHBP) providers, VEVRAA
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Photo of Laura A. Mitchell Laura A. Mitchell

Laura Mitchell is a principal in the Denver office of Jackson Lewis P.C. and leads the firm’s Workplace Analytics and Preventive Strategies Pay Equity subgroup. She partners with employers to evaluate, develop and implement policies and practices that ensure workplace fairness while mitigating…

Laura Mitchell is a principal in the Denver office of Jackson Lewis P.C. and leads the firm’s Workplace Analytics and Preventive Strategies Pay Equity subgroup. She partners with employers to evaluate, develop and implement policies and practices that ensure workplace fairness while mitigating legal risk. Laura is a guiding force in the firm’s most specialized and technical practice areas where she leverages an analytics-focused approach to partner with her clients in building legally compliant programs around which they can anchor their workplaces achieving productivity and stability.

Laura understands that creating a competitive advantage for employers in today’s workplace involves using a data-driven approach to counsel companies on the development of proactive and equitable non-discriminatory practices in hiring, promotions, separations and pay—and where advancements in technology can create both opportunities for efficiencies and risk that can be measured. Committed to putting her clients’ organizational goals first and foremost while balancing legal risk, Laura views herself as an extension of her clients’ team, responsible for providing proactive guidance and engaging in transparent, ongoing communication. Staying the course with employers across their organizational journey while balancing legal compliance obligations throughout their employees’ lifecycle ensures Laura’s position as a go-to resource.

Laura works with companies across all industries—both new and well-established multi-national organizations of all sizes—to realize the combined vision of legal compliance, increased productivity and economic growth enhanced by a focus on pay equity.  As part of the pay equity journey, she advises employers on the evolving pay transparency landscape, working to align compliant practices with the practical realities of the business world.

Laura partners closely with government contractors to understand, implement and demonstrate compliance with their EEO regulatory and compliance obligations. She also works closely with non-government contractor clients to conduct risk assessments of their programs, policies, and training to align with federal and state anti-discrimination requirements.

Laura is the editor and a principal contributor of the GovCon Employment Exchange blog and presents on pay equity and government contractor obligations. To round out her days, Laura enjoys spending time with her family and friends attending sports events, working out, riding her bike, playing pickleball and taking in Colorado’s incomparable sunsets.

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