OFCCP Eases Disability Compliance for Federal Contractors
A new final rule from the Department of Labor eliminates the requirement for federal contractors to invite voluntary disability self-identification and removes the 7% disability utilization goal.
The Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has issued a final rule, published August 21, 2026, that substantially alters affirmative action obligations for federal contractors regarding individuals with disabilities. The rule eliminates two key requirements under Section 503 of the Rehabilitation Act: the mandate for contractors to invite applicants and employees to self-identify as having a disability and the aspirational 7% utilization goal for employing individuals with disabilities in each job group.
This change marks a significant shift in disability compliance, intended to reduce administrative burdens. However, it also requires a strategic reassessment of how contractors measure workforce diversity and inclusion. Corporate counsel for federal contractors must now review and update their companies' affirmative action programs, hiring policies, and record-keeping practices to align with the new regulatory landscape. While some compliance tasks are eliminated, contractors' core obligations not to discriminate on the basis of disability remain fully in effect. Companies should monitor OFCCP guidance on implementation.