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Wednesday, June 25, 2025

DOL Puts Contractor Watchdog Employees on Leave as Layoffs Loom - Bloomberg Law News

The vast majority of employees at most of the Department of Labor’s federal contractor watchdog’s offices across the country have been placed on administrative leave as part of federal workforce downsizing, according to an email viewed by Bloomberg Law.

Employees in the enforcement branch of the Office of Federal Contract Compliance Programs’ national office and workers at the agency’s outposts across five of six US regions received notice of their change in status in the email sent Wednesday by new OFCCP Director Catherine Eschbach.

The action was taken due to the agency’s “significantly reduced scope of mission,” Eschbach said in the email to staff.

The OFCCP has become a major target of planned federal workforce cuts within the DOL carried out by the Trump administration, after the president gutted the office’s legal and oversight power at the start of his second term.

A Feb. 25 DOL memo indicated the department plans to ultimately cut 90% of the OFCCP’s workforce.

More reductions in force across the federal government are coming, as agencies including the DOL had a March 13 deadline to submit their plans to the Trump administration.

The new notice to OFCCP workers came two days after their third deadline to opt into deferred resignations and early retirement that would give them an exit route before expected layoffs.

Eschbach’s notice went to all employees...



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