DOL Ends Disability Data and Utilization Rules for Federal Contractors
A new Department of Labor final rule rescinds the 7% disability utilization goal and mandatory self-identification requirements for federal contractors under Section 503.
The U.S. Department of Labor (DOL) has issued a final rule, effective September 21, 2026, rescinding key disability-related affirmative action requirements for federal contractors under Section 503 of the Rehabilitation Act. The rule eliminates the 7% disability utilization goal, ends the mandate for contractors to invite applicants and employees to self-identify their disability status, and removes associated data collection and analysis obligations that have been in place since 2013.
Sophisticated counsel should note the DOL's rationale, which cited potential conflicts with the Americans with Disabilities Act (ADA) and argued the utilization goal could induce the use of prohibited quotas. This reversal significantly alters the compliance landscape, requiring a shift from quantitative benchmarks to qualitative assessments of program effectiveness. While core nondiscrimination, reasonable accommodation, and outreach obligations remain, this change demands a strategic rethinking of how contractors design and measure their disability affirmative action programs (AAPs).
Contractors should immediately begin revising their AAPs to remove the 7% goal and discontinue mandatory self-identification inquiries. They must also assess whether any state-specific affirmative action requirements impose separate, continuing obligations for disability data collection.