Employment Law Guide

Federal Contracts-Equal Opportunity in Employment: Employment Nondiscrimination and Equal Opportunity for Covered Veterans

Updated: March 2025

Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA),
as amended; 41 CFR Part 60-300

Who is Covered

The Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended, 38 U.S.C. 4212, ("VEVRAA") is administered by the Office of Federal Contract Compliance Programs ("OFCCP"). VEVRAA requires employers with Federal contracts or subcontracts valued at $150,000¹ or more, and contracts or subcontracts for indefinite quantities (unless the contracting agency has reason to believe that the cost in any one year will be less than $150,000), to treat applicants and employees without discrimination because they are a disabled veteran, recently separated veteran, active duty wartime or campaign badge veteran, or Armed Forces service medal veteran ("protected veteran"). Covered contractors must also take steps to employ and advance in employment qualified protected veterans. Contracts covered by VEVRAA are subject to the implementing regulations found at 41 CFR Part 60-300.

The following types of contracts and subcontracts are not covered under VEVRAA:

• Those for less than $150,000;
• Those for indefinite quantities where the agency determines that the cost in any one year will not exceed $150,000;
• Those for work that is performed outside the U.S. and for which employment activity decisions were made outside the U.S.; and
• Those with state or local governments, except for the specific government entity that participates in work on or under the contract.

The Director of OFCCP may grant a waiver from the requirements of VEVRAA in the following circumstances:

• For specific contracts, subcontracts, or purchase orders, if special circumstances in the national interest require such an exemption, or for groups or categories of contracts: where it is in the national interest; where it is found impracticable to act upon each request individually; and where such waiver will substantially contribute to convenience in administration of the act;
• For facilities not related to performance of the contract, as determined by the Director upon written request by the contractor; and
• Contracts and subcontracts involving national security, if the head of the contracting agency determines both that the contract is essential to national security, and noncompliance with a particular requirement of VEVRAA or the regulations with respect to the process of awarding the contract is essential to national security.

The categories of veterans covered under VEVRAA are disabled veterans, recently separated veterans (within three years of discharge or release from active duty), active duty wartime or campaign badge veteran, and veterans who, while serving on active duty in the Armed Forces, participated in a U.S. military operation for which an Armed Forces Service Medal was awarded pursuant to Executive Order 12985 (61 FR 1209).

VEVRAA and its implementing regulations apply only to the specific state or local government entities that participate in work on or under a Federal contract or subcontract. The coverage is narrower than that which applies to employers in the private sector.

Definitions

"Disabled veteran" means a veteran who served on active duty in the U.S. military ground, naval, or air service and is entitled to disability compensation (or who but for the receipt of military retired pay would be entitled to disability compensation) under laws administered by the Secretary of Veterans Affairs, or was discharged or released from active duty because of a service-connected disability.

"Recently separated veteran" means any veteran who served on active duty during the three-year period beginning on the date of such veteran's discharge or release from active duty.

"Armed forces service medal veteran" means any veteran who, while serving on active duty in the U.S. military ground, naval, or air service, participated in a United States military operation for which an Armed Forces service medal was awarded pursuant to Executive Order 12985 (61 Fed. Reg. 1209).

"Active duty wartime or campaign badge veteran" means a veteran who served on active duty in the U.S. military, ground, naval or air service during a war or in a campaign or expedition for which a campaign badge has been authorized, under the laws administered by the Department of Defense.

Basic Provisions/Requirements

The regulations implementing VEVRAA include the obligation to refrain from discrimination in employment against protected veterans. The regulations also require all covered contracts and subcontracts to include the clause at 41 CFR 60-300.5 in each of their nonexempt contracts and subcontracts.

In addition, VEVRAA requires contractors and subcontractors to list most employment openings with an appropriate employment service delivery system. Exempted from this mandatory job listing requirement are executive and top management positions, positions that will be filled from within the contractor's organization, and positions lasting three days or less. Listing employment openings with the State workforce agency job bank or local employment service delivery system where the opening occurs will satisfy the requirement to list jobs with the local employment service delivery system.

Covered contractors and subcontractors are also required to make reasonable accommodations for the known physical or mental limitations of qualified disabled veterans, unless providing an accommodation would create an undue hardship. In addition, covered contractors and subcontractors are required to take all necessary actions to ensure no one attempts to intimidate or discriminate against any individual for filing a complaint or participating in a proceeding under VEVRAA.

Written Program. Under the regulations implementing VEVRAA, certain contractors and subcontractors are required to have a written program for employing and advancing in employment protected veterans. Specifically, each contractor or subcontractor that has (1) 50 or more employees, and (2) a Federal contract or subcontract of $150,000 or more must prepare, implement, and maintain a written program for each of its establishments.

A contractor establishment required under VEVRAA to develop and maintain a written program must preserve its supporting documentation for the immediately preceding year, unless the contractor establishment was not then covered by the requirement.

Complaints

By statute, VEVRAA provides for a prompt investigation of employment discrimination complaints based on protected veteran status. See 38 U.S.C. § 4212(b). Employees and applicants of covered contractors, third parties, and authorized representatives (e.g., a family member, personal representative, or union representative) may file a complaint on behalf of an individual or group. Complaints may be submitted via fax, mail, or online.

Recordkeeping, Reporting, Notices and Posters

Notices and Posters

Covered contractors and subcontractors are required to display the "Know Your Rights" poster. The poster must be displayed in conspicuous places available to employees and applicants for employment such as, the personnel office, work-out facility, lunchroom, or company bulletin board. The contractor must ensure that applicants or employees who are disabled veterans are provided the notice in a form that is accessible and understandable to the disabled veteran (e.g., providing Braille or large print versions of the notice, posting the notice for visual accessibility to persons in wheelchairs, providing the notice electronically or on computer disc, or other versions). With respect to employees who do not work at a physical location of the contractor, a contractor will satisfy its posting obligations by posting such notices in an electronic format, provided that the contractor provides computers that can access the electronic posting to such employees, or the contractor has actual knowledge that such employees otherwise are able to access the electronically posted notices.

The "Know Your Rights" poster is available in multiple languages. There is no requirement to display the poster in languages other than English. There is no particular size requirement.

Contractors that have the obligation to develop a written VEVRAA program must post a notice at each establishment providing the location and hours it may be viewed. Additionally, covered contractors must post their VEVRAA policy statements on company bulletin boards, and made available in accessible and understandable format for disabled veterans, if needed (e.g., providing Braille or large print versions of the notice, or posting the notice for visual accessibility to persons in wheelchairs).

Recordkeeping

Personnel records. Federal contractors are required to maintain any personnel or employment records made or kept by the contractor. Examples of records that must be maintained include:

• Job descriptions
• Job postings and advertisements
• Records of job offers
• Applications and resumes
• Interview notes
• Tests and test results
• Written employment policies and procedures
• Personnel files

Federal contractors and subcontractors with fewer than 150 employees or a contract of less than $150,000 must keep records for one year from the date of the making of the personnel record or personnel action, whichever occurs later.

Federal contractors and subcontractors with 150 or more employees or who have a government contract of $150,000 or more must keep employment records for two years from the date of the making of the personnel record or personnel action, whichever occurs later.

In addition, all contractors with a Federal contract or subcontract of $150,000 or more, and 50 or more employees, must retain certain records related to outreach and recruitment, the hiring benchmark and data analysis, for a period of three years from the date of the making of the record.

Reporting

Federal contractors or subcontractors with a Federal contract or subcontract of $150,000 or more have a separate requirement to complete and submit to the Department's Veterans' Employment and Training Service (VETS) the VETS-4212 Report showing the numbers of protected veterans hired or employed during the reporting period. The VETS-4212 Report may be completed online. OFCCP may verify whether the contractor has complied with this requirement during a VEVRAA compliance evaluation.

Penalties/Sanctions

If a violation of VEVRAA is found a during compliance evaluation or complaint investigation, OFCCP will ask the Federal contractor or subcontractor to enter into conciliation negotiations. If conciliation efforts succeed, the contractor will enter into a binding conciliation agreement with OFCCP that includes corrective action the contractor will take and may also include the submission of follow-up reports from the contractor, for a fixed period of time, to assure compliance. If conciliation efforts fail, 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 combination of these outcomes.

If OFCCP files an administrative complaint, the matter will be referred to an Administrative Law Judge ("ALJ"), who hears the case and recommends a decision to the Department of Labor’s Administrative Review Board (“Board”). If the contractor, subcontractor, or OFCCP is dissatisfied with the ALJ's decision, they may appeal the decision to the Board. In both situations, the Board will then issue a final agency decision. Thereafter, either party may file a petition with the Board for further review by the Secretary. Where the Secretary accepts review, the Board’s decision does not become final unless and until the Secretary completes the review. If the Secretary does not accept review, the Board’s decision becomes final.

If the Board finds that the contractor or subcontractor has violated VEVRAA, it may order the contractor or subcontractor to provide appropriate relief, which may include restoration of back pay and employment status and benefits for the victim(s) of discrimination. Depending upon the circumstances, violations also may result in cancellation, suspension, or termination of contracts, withholding of progress payments, or debarment.

Relation to State, Local, and Other Federal Laws

There are no related state or local laws.

Compliance Assistance Available

The Department of Labor provides employers, workers, and others with clear and easy-to-access information and assistance on how to comply with the Vietnam Era Veterans' Readjustment Assistance Act. Among the resources available are:

• Office of Federal Contract Compliance Programs (OFCCP)

DOL Contacts

Office of Federal Contract Compliance Programs (OFCCP)

Tel: 1-866-4USADOL (1-866-487-2365) or 1-800-397-6251. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Veterans' Employment and Training Service (VETS)
Contact VETS
Tel: 1-866-237-0275; TTY: 1-877-889-5627

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