New director appointed to transition OFCCP to new mission

On March 24, 2025, the Department of Labor (DOL) announced Catherine Eschbach as the new director of the Office of Federal Contract Compliance Programs (OFCCP). In an email to OFCCP staff, Eschbach announced that, under her leadership, all reform options are on the table and “most of what OFCCP has been doing is out of step, if not flat out contradictory to our country’s laws.” Her email went on further to outline “OFCCP’s transition to its new scope of mission”:

• Examining federal contractors’ prior submissions to determine whether there are any indications of discrimination and whether the OFCCP should undertake additional investigations;
• Verifying that federal contractors have wound down affirmative action efforts 91 days after Executive Order (EO) 14173 rescinded EO 11246;
• Conducting an autopsy of the OFCCP’s actions and regulations following the rescission of EO 11246, analyzing whether there was authority to implement EO 11246, and determining if EO 11246 was legally viable under Loper Bright if it had not been rescinded, as well as analyzing the OFCCP’s use of disparate impact;
• Advising the Secretary of Labor of measures to deter “unlawful” diversity, equity, and inclusion (DEI) as required by Section 4 of EO 14173;
• Determining statutory authority for Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and whether the enforcement for same should be housed elsewhere in the DOL; and
• “Rightsizing” the staff and geographic footprint.

Majority of OFCCP staff placed on administrative leave