Office of Federal Contract Compliance Programs ends required disability self-identification and 7 percent utilization goal for federal contractors
In short
- What changed
- The Office of Federal Contract Compliance Programs (OFCCP) finalized changes to its Section 503 disability rules for federal contractors. Contractors no longer have to invite applicants and employees to self-identify a disability (Form CC-305), keep the related hiring computations, or analyze their workforce against a 7 percent utilization goal.
- Who's affected
- Federal contractors and subcontractors with a contract over $20,000. The affirmative action program changes matter most to contractors with 50 or more employees and a contract of $50,000 or more.
- What to do
- Plan updates to your hiring systems and affirmative action program for the September 21, 2026 effective date. If you want to keep asking about disability, check that choice against the Americans with Disabilities Act (ADA).
What changed
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From the sourceSupplementary Information, III.A.5
This final rule is removing the disability inquiry requirement and is rescinding the related data collection and analyses set forth at 41 CFR 60-741.44(k) and 41 CFR 60-741.45, respectively.
The rule removes the requirement in 41 Code of Federal Regulations (CFR) 60-741.42 that contractors invite applicants and employees to self-identify a disability. It also rescinds the related data collection at 41 CFR 60-741.44(k) and the utilization goal and analyses at 41 CFR 60-741.45.
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From the sourceSupplementary Information, II.A
Notably, the 2013 rule revised the regulations to include, at 41 CFR 60-741.45, a 7 percent utilization goal for individuals with disabilities.
The rescinded 41 CFR 60-741.45 contained the 7 percent utilization goal for individuals with disabilities.
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From the sourceSupplementary Information, III.A.2.g
DOL declines to retain this form, as the final rule rescinds the disability inquiry requirement.
The Department of Labor will no longer provide Form CC-305, the prescribed disability self-identification form.
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From the source41 CFR 60-741.44(l)
(l) Contractors are not required to consider quantitative data on the numbers of individuals with disabilities who were referrals, applicants, or hires when assessing the effectiveness of their outreach efforts and affirmative action program
A new paragraph says contractors do not have to consider counts of referrals, applicants or hires with disabilities when they assess their outreach efforts and affirmative action program.
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From the source41 CFR 60-741.1(b)
(b) Applicability. This part applies to all Government contracts and subcontracts in excess of $20,000 for the purchase, sale or use of personal property or nonpersonal services (including construction)
Also: Footnote 3
Effective October 1, 2025, the basic coverage threshold under Section 503 increased from $15,000 to $20,000
The rule text now uses the $20,000 basic coverage threshold, which took effect October 1, 2025 through a separate inflation adjustment.
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From the sourceSupplementary Information, III.A.7
Rather than cross-referencing to the E.O. 11246 regulation's administrative proceeding procedures, DOL is merely moving the applicable procedures directly into the Section 503 regulatory text.
Also: Supplementary Information, III.A.8
This final rule does not expand DOL's remedial authority, create new causes of action, or establish new enforcement mechanisms.
The administrative hearing procedures are moved into the Section 503 rules at 41 CFR 60-741.65, and the old shared procedures at 41 CFR part 60-30 are removed effective December 21, 2026. The rule says this creates no new enforcement mechanisms.
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From the source41 CFR 60-741.23(a)
Except as stated in paragraph (b) of this section, it is unlawful for the contractor to require a medical examination of an applicant or employee or to make inquiries as to whether an applicant or employee is an individual with a disability or as to the nature or severity of such disability.
The revised medical examinations and inquiries provision says it is unlawful for a contractor to ask whether an applicant or employee has a disability, except as stated in paragraph (b) of that section.
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From the sourceSupplementary Information, III.A.3
contractors are still prohibited from discriminating against any employee or applicant for employment because of their physical or mental disability
Also: Supplementary Information, III.A.3
DOL notes that the NPRM did not propose, and the final rule does not make, changes to the reasonable accommodation requirements
The nondiscrimination provisions and the reasonable accommodation requirements do not change.
Who is affected
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From the source41 CFR 60-741.4(a)(1)
Contracts and subcontracts in excess of $20,000 are covered by this part.
Also: Supplementary Information, II.A
The Section 503 regulations' basic nondiscrimination and recordkeeping requirements apply to contractors with a government contract in excess of $20,000
Section 503 covers federal contractors and subcontractors with a contract or subcontract over $20,000.
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From the sourceSupplementary Information, II.A
Regulations at 41 CFR 60-741.40(b) further require contractors with 50 or more employees and a Federal contract or subcontract of $50,000 or more to develop and maintain an affirmative action program (AAP)
Contractors with 50 or more employees and a federal contract or subcontract of $50,000 or more must keep a written affirmative action program.
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AmendSignal analysisSupplementary Information, I
The Section 503 implementing regulations include specific affirmative action requirements at 41 CFR part 60-741, subpart C.
Also: Supplementary Information, III.A.3
contractors meeting the AAP thresholds are still required to design and implement an audit and reporting system
The changes to affirmative action program contents, such as the outreach assessment and the audit system, matter most to contractors that must keep a written affirmative action program.
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From the sourceSupplementary Information, III.A.3
DOL notes that this final rule pertains to the Section 503 regulations only.
The rule covers the Section 503 disability rules only. It does not change the veterans rules under the Vietnam Era Veterans' Readjustment Assistance Act.
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From the sourceSupplementary Information, III.A.2.g
employees and applicants are still permitted to disclose their disability status at any point in the hiring or employment process (e.g., when requesting a reasonable accommodation).
Applicants and employees can still disclose a disability on their own, for example when requesting a reasonable accommodation.
What it means in practice
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AmendSignal analysisSupplementary Information, III.A.9
DOL acknowledges that contractors might incur costs updating HR systems to remove disability inquiries and updating related analyses.
Also: Supplementary Information, IV.A.1.a
DOL estimates that covered entities will take an average of 10 hours to remove the CC-305 form and data collection information from their recordkeeping/Human Resource Information Systems.
Contractors will likely need to update applicant tracking and human resources systems to remove the self-identification form and the related data fields. The Department of Labor estimates about 10 hours of work per company.
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From the sourceSupplementary Information, IV.A.2
DOL estimates that the annualized cost savings resulting from this final rule amount to $80,047,091 in 2024 dollars.
The Department of Labor estimates annualized cost savings of about $80 million across all contractors.
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AmendSignal analysisSupplementary Information, III.A.2.c
DOL is not prohibiting contractors from exercising their own legal and business judgment about making disability inquiries consistent with the ADA and its implementing regulations.
Also: Footnote 8
At their own discretion, contractors remain free to conduct utilization analyses. In doing so, contractors should ensure they are acting in accordance with all applicable laws and regulations, including the ADA.
Contractors that choose to keep asking about disability or running utilization analyses do so on their own judgment. The rule expects that choice to comply with the ADA.
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From the sourceSupplementary Information, III.A.5
In meeting these requirements, contractors may review other factors such as the accessibility of their outreach and hiring materials.
Contractors can judge their outreach using factors other than disability counts, such as the accessibility of outreach and hiring materials.
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From the sourceSupplementary Information, III.A.10
DOL notes that no contractors were cited for a violation related to the disability inquiry and utilization requirements during the rulemaking period.
The Department of Labor says it cited no contractor for disability inquiry or utilization violations during the rulemaking period.
What to do
Required
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From the source41 CFR 60-741.44(f)(3)
The contractor shall, on an annual basis, review the outreach and recruitment efforts it has taken over the previous twelve months to evaluate their effectiveness in identifying and recruiting qualified individuals with disabilities.
Also: 41 CFR 60-741.44(f)(3)
The contractor shall document each evaluation, including at a minimum the criteria it used to evaluate the effectiveness of each effort and the contractor's conclusion as to whether each effort was effective.
Each year, review the outreach and recruitment efforts of the previous twelve months, and document the criteria used and your conclusion on whether each effort was effective.
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From the source41 CFR 60-741.80(b)
shall be maintained by all contractors for a period of three years from the date of the making of the record.
Also: Supplementary Information, IV.A.1.b
The regulations at 41 CFR 60-741.44(f)(4) still require a contractor to document all outreach activities it undertakes for individuals with disabilities and retain these documents for a period of 3 years.
Keep the records of outreach activities required by 41 CFR 60-741.44(f)(4) for three years.
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From the source41 CFR 60-741.5(a)(6)
The contractor will include the provisions of this clause in every subcontract or purchase order in excess of $20,000, unless exempted by the rules, regulations, or orders of the Secretary
Include the equal opportunity clause in every subcontract or purchase order over $20,000, unless exempted.
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From the source41 CFR 60-741.41
The full affirmative action program shall be available to any employee or applicant for employment for inspection upon request. The location and hours during which the program may be obtained shall be posted at each establishment.
Make the full affirmative action program available for inspection on request, and post at each establishment where and when it can be obtained.
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From the sourceSupplementary Information, III.A.3
contractors meeting the AAP thresholds are still required to design and implement an audit and reporting system
Contractors that must keep an affirmative action program still have to design and implement an audit and reporting system.
Worth considering
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AmendSignal suggestionSupplementary Information, IV.A.1.a
DOL estimates that covered entities will take an average of 10 hours to remove the CC-305 form and data collection information from their recordkeeping/Human Resource Information Systems.
Also: Supplementary Information, IV.C.1
DOL notes that the proposed changes to the information collection will not take effect until the effective date of the final rule.
Consider removing the Form CC-305 self-identification step and related data fields from your application, onboarding and human resources systems once the rule takes effect, unless you decide to keep a voluntary inquiry.
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AmendSignal suggestionSupplementary Information, III.A.2.c
DOL is not prohibiting contractors from exercising their own legal and business judgment about making disability inquiries consistent with the ADA and its implementing regulations.
Also: 41 CFR 60-741.23(a)
Except as stated in paragraph (b) of this section, it is unlawful for the contractor to require a medical examination of an applicant or employee or to make inquiries as to whether an applicant or employee is an individual with a disability or as to the nature or severity of such disability.
Consider reviewing with your legal counsel whether to keep any voluntary disability question, given the ADA reasoning in the rule and the revised wording of 41 CFR 60-741.23(a).
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AmendSignal suggestionSupplementary Information, III.A.5
This final rule is removing the disability inquiry requirement and is rescinding the related data collection and analyses set forth at 41 CFR 60-741.44(k) and 41 CFR 60-741.45, respectively.
Also: 41 CFR 60-741.44(l)
(l) Contractors are not required to consider quantitative data on the numbers of individuals with disabilities who were referrals, applicants, or hires when assessing the effectiveness of their outreach efforts and affirmative action program
Consider updating affirmative action program templates to drop the 7 percent utilization analysis and the hiring computations, and to set out the non-numeric criteria you will use for the annual outreach assessment.
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AmendSignal suggestion41 CFR 60-741.4(a)(1)
Contracts and subcontracts in excess of $20,000 are covered by this part.
Also: 41 CFR 60-741.5(a)(6)
The contractor will include the provisions of this clause in every subcontract or purchase order in excess of $20,000, unless exempted by the rules, regulations, or orders of the Secretary
Consider rechecking which contracts, subcontracts and purchase orders fall under the $20,000 threshold, and whether your subcontract clause language reflects it.
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AmendSignal suggestionSupplementary Information, III.A.3
DOL notes that the NPRM did not propose, and the final rule does not make, changes to the reasonable accommodation requirements
Also: Supplementary Information, III.A.2.g
employees and applicants are still permitted to disclose their disability status at any point in the hiring or employment process (e.g., when requesting a reasonable accommodation).
Consider reminding recruiters and hiring managers that the reasonable accommodation process is unchanged and that applicants and employees may still disclose a disability on their own.
Open questions
The source leaves these open. We'll update this record if a later document answers them.
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Can a contractor still choose to invite applicants or employees to self-identify a disability after September 21, 2026?
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What should contractors do with disability self-identification data and utilization records they already collected?
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Must contractors finish utilization analyses for affirmative action program years that began before September 21, 2026?
History
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Modifications to the Regulations Implementing Section 503 of the Rehabilitation Act of 1973, as Amended Source (opens in a new tab)