The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has finalized changes to its regulations under Section 503 of the Rehabilitation Act of 1973, eliminating several longstanding disability-related affirmative action requirements for federal contractors. The final rule is scheduled for publication in the Federal Register on Aug. 21, 2026.

Under the Section 503 final rule, contractors will no longer be required to invite applicants and employees to self-identify as individuals with disabilities, collect related disability data, or measure their workforce against OFCCP’s seven percent utilization goal.

The Section 503 final rule is part of a broader deregulatory package that also rescinds regulations implementing Executive Order 11246 and modifies regulations implementing the Vietnam Era Veterans’ Readjustment Assistance Act.

Key Section 503 Obligations Remain

Section 503 itself remains in effect, including the requirement to annually prepare a written Affirmative Action Plan. Although the final rule removes much of the data-driven compliance framework, covered contractors must continue to take affirmative action to employ and advance qualified individuals with disabilities and comply with Section 503’s nondiscrimination requirements.

Contractors also must continue to assess the effectiveness of their outreach and recruitment efforts on behalf of individuals with disabilities. They will no longer, however, be required to collect or evaluate disability data to make that assessment.

Jackson Lewis attorneys are evaluating the full impact of the final rule and additional guidance will be forthcoming soon. In the meantime, if you have questions about OFCCP’s final rule package and how it could affect your organization, contact a Jackson Lewis attorney to discuss.