CEI’s comment on Proposed Reforms to VEVRAA Regulations and Enforcement Procedures in Light of Constitutional and Administrative Law Concerns

Re:    Comment on Modifications to the Regulations Implementing the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as Amended

Docket OFCCP-2025-0002

Dear Director Eschbach:

On behalf of the Competitive Enterprise Institute, I respectfully submit these comments to the Department of Labor (“the Department”) concerning its proposed rule Modifications to the Regulations Implementing the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as Amended, 90 Fed. Reg. 28,485 (proposed July 1, 2025) (to be codified at 41 C.F.R. pt. 60-300).

In the Office of Federal Contract Compliance Program’s chapter of the Code of Federal Regulations, chapter 60 of title 41, eight of the twelve parts deal with different types of requirements and violations. Three of the parts have their own procedures for enforcement, while part 60-30 “provides the rules of practice for all administrative proceedings, instituted by the OFCCP.”  41 C.F.R. § 60-30.1. The Department sensibly proposes to remove cross references to part 60-30 in part 60-300 and to add the administrative enforcement proceedings for the Vietnam Era Veterans’ Readjustment Assistance Act to part 60-300 except where duplicative of current part 60-300 provisions. 90 Fed. Reg. at 28,485.

In light of the Supreme Court’s ruling in SEC v. Jarkesy, 603 U.S. 109 (2024), part 60-300 should also be amended to provide that the sanctions authorized by section 60-300.65(a) do not include civil penalties or, alternatively, to provide for hearings before a jury and a federal district judge rather than an administrative law judge in cases where a civil penalty may be imposed and in any other case where the Seventh Amendment requires a trial by jury.

In addition, procedures for the issuance of show cause notices to contractors should be removed from section 60-300.62. Those procedures conflict with the Administrative Procedure Act, which provides that in hearings “the proponent of a rule or order has the burden of proof.” 5 U.S.C. § 556(d).

These regulatory reforms would fulfill the directives of President Trump—not only EO 14173 but also his order Directing Repeal of Unlawful Regulations. Memorandum on Directing Repeal of Unlawful Regulations, Compilation of Presidential Documents 202500466 (Apr. 9, 2025).

Thank you for your consideration of these comments.

Cordially yours,

David S. McFadden

Attorney, Competitive Enterprise Institute