Department of Labor Announces Final Rule on Government Contractors' Veterans Reporting Requirements

The Department of Labor’s Veterans’ Employment and Training Service (“VETS”) is effectuating provisions requiring federal contractors to file new annual reports on their employment of covered military veterans.  The VETS’ Final Rule, issued on May 19, 2008, implements amendments to the reporting requirements under the Vietnam Era Veterans’ Readjustment Act (“VEVRAA”),  as required by the Job for Veterans Act of 2002 (“JVA”). Under the new regulations, employers with federal contracts of $100,000 or more entered into on or after December 1, 2003, must file the new VETS-100A report.  Employers with federal contracts of $25,000 or more entered into before December 1, 2003, will continue to file VETS-100 reports.  Moreover, despite numerous objections, contractors with both types of contracts must file both forms.  This new rule will take effect on June 18, 2008.

The VETS-100A form complies with the revised reporting categories under JVA and requires covered contractors to track and report annually the following categories of veterans:

1. “Disabled Veterans” − Includes any veteran who: (a) is entitled to compensation, or who, but for the receipt of military retired pay, would be entitled to compensation under laws administered by the Secretary of Veterans Affairs, or (b) was discharged or released from active duty because of a service-connected disability;
2. “Other Protected Veterans” − Includes any veteran who served on active duty in the U.S. military, ground, naval or air service in a war, campaign or expedition in which a campaign badge has been authorized under laws administered by the Department of Defense;
3. “Armed Forces Service Medal Veterans” − Includes any veteran who, while serving on active duty in the Armed Forces, participated in a United States military operation for which a service medal was awarded pursuant to Executive Order 12985; and
4. “Recently Separated Veterans” − Includes any veteran during the three-year period beginning on the date of such veteran’s discharge or release from active duty.

While contractors subject to the VETS-100A filing requirement must begin collecting and maintaining the data prescribed by the new regulations as soon as the regulation becomes effective, VETS will not start accepting the VETS-100A until September 30, 2009.  The Final Rule, however, does not address the question of whether contractors must re-survey their workforces to collect the new data.  VETS may address this issue in some future FAQs.

Important Notes

• A contract modified on or after December 1, 2003, that was entered into before December 1, 2003, creates a new contract and therefore requires the contractor to file a VETS-100A report.
• A contractor with a contract subject to the VEVRAA regulations that enters into a contract of $100,000 or more after the start of its affirmative action plan year does not have to file a VETS-100A report for that year.
• Instructions for completing the VETS-100A report state “entering into a covered federal contract or subcontract during a given calendar year establishes the requirement to file a VETS-100A report during the following calendar year.”

Recommended Actions

• Contractors should begin inventorying their contracts to determine whether they are obligated to comply with both VEVRAA and the JVA amendments.
• Contractors with contracts entered into before December 1, 2003, should determine whether their federal contracts were modified after December 1, 2003, for purposes of reporting obligations.
• Contractors subject to the JVA amendments should revise their self-identification forms for new hires to reflect the new categories.
• Contractors with these obligations must be prepared to file the VETS-100A (and/or the VETS-100 form, depending upon their current contracts) going forward.

Jackson Lewis attorneys are available to assist contractors with their veterans reporting obligations.