Veterans' Employment and Training Service — DVOP, LVEP, and State Performance Standards

The Veterans' Employment and Training Service (VETS) is the division of the Department of Labor responsible for ensuring that veterans — especially disabled veterans and those with significant barriers to employment — receive meaningful priority in the public workforce system. VETS does not operate its own job centers; instead, it funds and oversees two specialized staff positions that states are required to place in American Job Centers (AJCs): Disabled Veterans' Outreach Program (DVOP) specialists, who provide intensive case management to veterans with significant barriers to employment, and Local Veterans' Employment Representatives (LVERs), who conduct employer outreach and facilitate hiring events. The governing regulations appear at 20 CFR Part 1001 (standards of performance for state veterans employment and training programs) and implement 38 U.S.C. Chapter 41 (Job Counseling, Training, and Placement Service for Veterans) and Chapter 42 (Employment and Training of Veterans).

Current Rule (2026)

Legal Authority

• 38 U.S.C. §§ 4101–4104 (Chapter 41 — Job Counseling, Training, and Placement Service for Veterans) — Establishes the Veterans' Employment and Training Service within DOL; authorizes DVOP (Disabled Veterans' Outreach Program) specialists and LVER (Local Veterans' Employment Representative) positions funded through formula grants to states
• 38 U.S.C. § 4102A — Establishes performance accountability standards for VETS grant programs; requires states to meet minimum outcome standards as a condition of funding
• 38 U.S.C. § 4212 (Chapter 42 — Employment and Training of Veterans) — Federal contractor affirmative action and reporting obligations for covered veterans; establishes the HIRE Vets Medallion Program
• Jobs for Veterans Act of 2002 (P.L. 107-288) — Major VETS reauthorization; restructured the DVOP/LVER system, added performance accountability requirements, and modernized the employment assistance framework
• 20 CFR Part 1001 — DOL VETS implementing regulations for state grant programs and accountability requirements

Key Mechanics

The Veterans' Employment and Training Service (VETS) within the Department of Labor administers two primary programs. First, formula grants to State Workforce Agencies (SWAs) under 38 U.S.C. §§ 4101–4104: funds flow to states to employ Disabled Veterans' Outreach Program (DVOP) specialists (who provide intensive employment services to veterans with the most significant barriers) and Local Veterans' Employment Representatives (LVERs) (who work with employers to develop veteran job opportunities and monitor compliance with federal contractor obligations). DVOP specialists are required to focus exclusively on the highest-priority population: special disabled veterans, recently separated veterans, and others facing economic disadvantage. Second, federal contractor affirmative action and reporting under 38 U.S.C. § 4212: federal contractors above $150,000 must take affirmative action to hire and retain covered veterans and must file annual VETS-4212 reports documenting the number of covered veteran employees. VETS also administers the HIRE Vets Medallion Program, which recognizes employers with strong veteran hiring and retention records. Performance accountability: states receiving DVOP/LVER formula grants must meet employment outcome standards (entered employment rate, retention rate, average earnings) for veterans served; failure to meet standards can result in reduced grant funding.

What This Program Does

The Veterans' Employment and Training Service operates through two complementary mechanisms. First, VETS makes formula grants to State Workforce Agencies (SWAs) to fund DVOP specialists and LVER positions in American Job Centers. Second, VETS establishes performance standards that states must meet as a condition of receiving grant funding — tracking outcomes like entered employment rates, employment retention, and average earnings for veterans served.

The two staff categories are carefully distinguished by statute and regulation:

• DVOP specialists focus exclusively on veterans with significant barriers to employment — veterans who are homeless, recently incarcerated, recently separated from service (within 12 months), have a service-connected disability rating, or face other employment barriers the Secretary defines. DVOP specialists provide intensive, individualized case management: vocational assessment, barrier identification, referrals to supportive services, and job development with specific employers on behalf of individual veterans.

• LVERs focus outward toward employers and the workforce system. LVERs conduct employer outreach and advocacy, facilitate job fairs and hiring events oriented to veterans, promote veterans' preference in private-sector hiring, and ensure veterans receive priority of service throughout American Job Center services. LVERs do not duplicate DVOP functions — they are prohibited from providing direct placement or case management services that DVOPs handle.

This division of labor reflects a key policy judgment: reaching employers (LVER function) and intensively case-managing the hardest-to-place veterans (DVOP function) are both essential, but they require different skills and should not compete for the same staff person's time.

Key Provisions

§ 1001.100 — Scope and statutory authority: Part 1001 implements 38 U.S.C. §§ 4102A, 4103, 4103A, and 4104 — the core statutory provisions requiring states to provide veterans employment and training services, and establishing VETS's oversight authority; the regulation also implements 38 U.S.C. § 4212, which requires federal contractors with government contracts of $100,000 or more to take affirmative action in employing and advancing qualified covered veterans

§ 1001.102 — Priority of service: the Veterans' Benefits, Health Care, and Information Technology Act of 2006 (Pub. L. 109-461) requires that veterans receive priority of service over non-veterans for all DOL-funded employment and training programs — not just VETS-specific services but all American Job Center services funded under WIOA, Wagner-Peyser, and other DOL workforce programs; "priority of service" means veterans are given access to services earlier in the queue, have resource priority when services are limited, and are enrolled before non-veterans when program capacity is constrained

§ 1001.110 — DVOP specialist function: DVOP specialists must provide intensive services exclusively to eligible veterans with significant barriers to employment; DVOP specialists may not be assigned to serve non-veteran populations or to perform LVER functions; their caseloads must consist exclusively of the priority veteran populations defined in statute and in Secretary-published criteria; states cannot use DVOP staff as general employment counselors to fill gaps in AJC capacity

§ 1001.111 — LVER function: LVERs must spend their time on employer-focused activities: conducting employer outreach to develop job opportunities and apprenticeship placements for veterans, facilitating Job Clubs and hiring events exclusively for veterans, promoting veterans' hiring within the AJC's employer partnerships, and coordinating with veterans' service organizations to enhance employer awareness of veterans' skills; LVERs are prohibited from providing the intensive case management services that are the exclusive province of DVOP specialists

§ 1001.112 — Prohibition on supplanting: DVOP and LVER positions must be in addition to the core staff at American Job Centers — not substitutes for existing staff; a state cannot reassign a DVOP specialist's VETS grant funding to cover a general employment counselor position and then designate that position DVOP; the supplanting prohibition protects the additionality of veteran-specific services

§ 1001.120 — Grant formula: VETS allocates grant funds to states using a formula based on each state's share of the national unemployed veteran population — specifically the ratio of the state's unemployed veterans (from the Current Population Survey and Local Area Unemployment Statistics) to the national total of unemployed veterans; states with higher concentrations of unemployed veterans receive proportionally more funding to support DVOP and LVER positions; this population-based formula ensures resources follow need rather than historical allocation

§ 1001.130 — State Plan requirements: to receive a VETS grant, a state must submit a Veterans' Employment and Training Plan to the VETS Regional Administrator; the plan must describe how the state will deploy DVOP specialists and LVERs, what populations the DVOP specialists will serve, how services will be coordinated with AJC partners (WIOA Title I adult and dislocated worker programs, Wagner-Peyser employment services, vocational rehabilitation), and how the state will meet VETS performance standards

§ 1001.140 — Performance standards: VETS measures state performance on four key outcomes for veterans served through the program:

• Entered Employment Rate: percentage of veterans who were not employed when they began receiving services who are employed in a given quarter after services
• Employment Retention Rate: percentage of employed veterans who remain employed in subsequent quarters
• Average Earnings: median earnings of veterans in the entered employment cohort
• Credential Attainment Rate (for veterans receiving training services): percentage who complete training and receive an industry-recognized credential, educational certificate, or degree

States that fail to meet negotiated performance levels may be required to submit improvement plans; persistent failure can result in reduced grant funding or corrective action agreements with VETS.

§ 1001.150 — Reporting: states must submit quarterly performance reports to VETS using the Veterans' Employment and Training Service data reporting system; individual veteran records (de-identified) must be reported to enable outcome tracking; the reporting requirements allow VETS to calculate the performance measures and track progress against negotiated targets

Special Veteran Populations

The statute and regulation emphasize priority treatment for specific veteran populations whose employment barriers are most severe:

• Special disabled veterans (veterans with a service-connected disability rating of 30% or more, or those discharged from active duty due to a disability): the highest priority for DVOP intensive services
• Other disabled veterans (veterans with any service-connected disability rating below 30%): second priority for DVOP intensive services
• Veterans who served on active duty for more than 180 days: eligible for priority services; may face employment gaps from deployment
• Recently separated veterans (separated within 12 months): a transitional population whose civilian employment networks and work authorization documents may be in flux
• Campaign badge veterans (veterans who served during a recognized campaign or expedition): eligible for all VETS services with priority consideration

Vietnam-era veterans — those who served between August 1964 and May 1975 — receive explicit statutory mention (38 U.S.C. § 4103A) because Congress recognized that their reintegration challenges following a politically divisive war left many chronically underemployed decades later.

How It Affects You

If you are a veteran seeking employment: you have priority of service at any American Job Center for all DOL-funded employment services. If you face significant barriers to employment — homelessness, recent incarceration, service-connected disability, or recent separation — you can request connection to a DVOP specialist for intensive case management. DVOPs can conduct in-depth vocational assessments, help identify and address barriers, connect you to housing and supportive services, and develop job opportunities with specific employers on your behalf. LVER staff can connect you with employer job fairs and advocate with employers in your industry for veteran hiring.

If you are a State Workforce Agency: DVOP and LVER positions funded by the VETS grant must be deployed according to Part 1001's functional requirements — DVOPs exclusively to intensive case management of veterans with significant barriers, LVERs exclusively to employer outreach and advocacy. Staff may not be reassigned to fill general AJC capacity gaps. Performance outcomes are tracked quarterly, and states are held to negotiated performance levels. Failure to maintain compliant DVOP and LVER deployment or to meet performance targets can result in grant reductions and corrective action requirements.

If you are a federal contractor (contracts ≥ $100,000): under 38 U.S.C. § 4212 and the implementing VEVRAA regulations (41 CFR Part 61-300), you must take affirmative action to employ and advance in employment covered veterans, maintain written affirmative action programs, and list job openings with the appropriate State Workforce Agency. VETS enforces VEVRAA compliance and may refer cases to the OFCCP for further action.

Implementing Regulations — Priority of Service for Covered Persons (20 CFR Part 1010)

20 CFR Part 1010 implements the Jobs for Veterans Act (JVA) priority of service requirement, which gives veterans and eligible spouses priority access to every DOL-funded qualified job training program — WIOA Adult, Dislocated Worker, TAA, Wagner-Peyser Employment Service, JVSG, and all others.

• § 1010.100 — Purpose: Part 1010 requires all recipients of DOL job training funds to implement priority of service so that covered persons receive priority access to the full range of employment, training, and placement services they need
• § 1010.110 — Definitions: "covered person" means a veteran (who served at least one day on active duty, other than for training) or an eligible spouse (spouse of a veteran who died from service-connected disability, a 100% disabled veteran, an active-duty member on long-term duty, or a veteran listed as MIA); the covered person definition is broad, covering virtually all veterans regardless of service length, discharge character, or disability status
• § 1010.200 — What priority of service means: when a covered person and a non-covered person apply for the same service and there is a resource limitation (e.g., only one opening in a training program, limited case management slots), the covered person must be given priority — served first or enrolled first; if resources are unlimited, priority does not affect access but may still affect queue order
• § 1010.210 — Universal application: priority of service applies to every qualified job training program funded by DOL — not just programs specifically designed for veterans; this includes WIOA Title I Adult and Dislocated Worker programs, the Employment Service (Wagner-Peyser), Trade Adjustment Assistance (TAA), Reintegration of Ex-Offenders programs, Youth programs for veteran youth, and all formula grant programs; one-stop centers and American Job Centers must implement priority across all services
• § 1010.220 — Implementation responsibilities: program recipients must: (1) conduct intake processes that identify covered persons at the point of first contact; (2) have a written policy implementing priority of service; (3) train staff on priority of service requirements; (4) collect data on covered persons served vs. total participants; (5) ensure that covered person status does not make them ineligible for or excluded from any program open to non-covered persons
• § 1010.230 — State responsibilities: states receiving DOL formula grants must incorporate priority of service into their state plans, issue guidance to local areas, and monitor compliance; states must ensure local workforce boards adopt priority of service policies and train frontline staff
• § 1010.240 — DOL monitoring: VETS monitors recipients' compliance with priority of service through program reviews, data analysis, and technical assistance visits; findings of non-compliance may result in corrective action plans, and persistent non-compliance may affect future grant awards
• § 1010.250 — No waiver: priority of service cannot be waived — not by a state, a local workforce board, a recipient, or an individual veteran; a veteran cannot waive their own priority, and a program cannot waive the requirement even for administrative convenience

Priority of service creates a meaningful advantage for veterans in accessing job training resources. When a WIOA Adult program has a waiting list, covered persons move to the front. When a training slot opens in a demand-sector program, covered persons are offered it first. The rule's universal application (all DOL programs, not just VETS-specific programs) ensures that veterans encounter priority wherever they seek employment assistance — not just at DVOP/LVER specialists, but at the front desk of any American Job Center.

OFCCP Affirmative Action for Veteran Contractors (41 CFR Part 60-300)

Federal contractors and subcontractors with contracts of $100,000 or more must take affirmative action to hire and advance in employment covered veterans under the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA). The Office of Federal Contract Compliance Programs (OFCCP) enforces this requirement through 41 CFR Part 60-300 — Affirmative Action and Nondiscrimination Obligations of Federal Contractors Regarding Disabled Veterans, Recently Separated Veterans, Active Duty Wartime or Campaign Badge Veterans, and Armed Forces Service Medal Veterans (32 sections; authority: 38 U.S.C. § 4212):

• § 60-300.4 — Coverage: contracts and subcontracts of $100,000 or more are covered; contracts below $100,000 are subject only to the non-discrimination prohibition (not the affirmative action plan requirement); the $100,000 threshold is one of the most significant compliance thresholds in federal contractor law — a contractor with a $95,000 contract is not required to have a written affirmative action plan; the same contractor with a $105,000 contract must have one
• § 60-300.20 — Covered employment activities: nondiscrimination applies to recruitment, job application procedures, hiring, promotion, demotion, transfer, layoff, termination, compensation, job training, and all other terms and conditions of employment
• § 60-300.21 — Prohibited discrimination: disparate treatment (treating covered veterans less favorably than non-veterans because of their veteran status or disability), disparate impact, denial of reasonable accommodation, harassment, and retaliation
• § 60-300.22 — Direct threat defense: a contractor may use a job-related qualification standard requiring that an individual not pose a direct threat to health or safety; direct threat must be assessed individually based on objective, medical evidence — not a blanket exclusion of veterans with certain disabilities
• § 60-300.23 — Medical examinations: contractors may not conduct pre-offer medical examinations; post-offer medical examinations (before employment begins) are permissible only if all entering employees in the same job category are examined; medical information must be maintained in separate, confidential files
• § 60-300.40 — Affirmative action plan (AAP) requirement: contractors with 50 or more employees and a contract of $100,000 or more must develop and maintain a written AAP for each establishment; the AAP must include: a policy statement from the CEO, a utilization analysis of covered veterans in the workforce, identification of under-representation, and specific action-oriented programs to increase hiring and retention of covered veterans
• § 60-300.44 — AAP components: the AAP must include: a list of job openings listed with the state workforce agency; targeted outreach to veterans' service organizations and transition assistance programs; records of veterans who apply or are referred by the state workforce agency; and an annual internal audit of the AAP's effectiveness
• § 60-300.60 — Compliance evaluations: OFCCP may conduct compliance evaluations (desk audits of AAP and employment data, or on-site review) without a complaint; contractors must make AAPs and supporting records available to OFCCP within 30 days of request
• § 60-300.66 — Contractor developed data: contractors must annually assess their utilization of covered veterans and compare against a national benchmark; the benchmark is set by OFCCP as a percentage reflecting veterans' availability in the civilian labor force (currently 5.1% for AAPs developed on or after July 31, 2025; was 5.2% before); if a contractor's percentage of covered veterans falls below the benchmark, it must intensify outreach and recruitment efforts

VEVRAA and 41 CFR Part 60-300 operate alongside (but separately from) Section 503 of the Rehabilitation Act (which applies to veterans with service-connected disabilities) and Title I of the ADA (which applies to veterans with disabilities who are not covered by Section 503). Contractors subject to VEVRAA typically must maintain three overlapping affirmative action plans: one under E.O. 11246 (race, sex), one under Section 503 (individuals with disabilities), and one under VEVRAA (covered veterans). OFCCP consolidated the compliance review for all three into unified scheduling letters and audit procedures. Recent rulemakings: 78 FR 58613 (September 2013) — comprehensive VEVRAA implementing regulations update, adding the national benchmark, establishing the $100,000 coverage threshold, and significantly expanding AAP content requirements.

Statutory Authority

This rule implements:

• 38 U.S.C. § 4102A — requires DOL to establish a system for furnishing veterans with employment assistance, including the DVOP and LVER programs; the Secretary sets standards for DVOP and LVER functions
• 38 U.S.C. § 4103 — requires each State Workforce Agency to establish a veterans' employment program administered by a State Director for Veterans' Employment and Training
• 38 U.S.C. § 4103A — establishes the LVER program: requires each state to designate LVER positions in each AJC; LVERs must be veterans; their functions are employer outreach and veterans' advocacy, not direct case management
• 38 U.S.C. § 4104 — establishes the DVOP program: DVOPs must be veterans; their function is providing intensive services to veterans with barriers to employment; the statute prohibits use of DVOP specialists for non-veteran populations
• 38 U.S.C. § 4212 — requires federal contractors to take affirmative action to hire covered veterans; VETS has enforcement authority over contractor VEVRAA obligations

Recent Rulemakings

2014 Final Rule (79 FR 46561): updated performance standards to align with WIOA's common performance measures framework; clarified the functional distinctions between DVOP and LVER positions; revised the definition of "significant barriers to employment" to include homeless veterans, recently incarcerated veterans, veterans with service-connected disabilities, and veterans within 12 months of separation. 2002 Jobs for Veterans Act (Pub. L. 107-288): the foundational reauthorization that established the current DVOP/LVER framework, codified the priority of service requirement, and restructured the VETS grant formula to be population-based. No major structural amendments since 2014.

Pending Action