OFCCP Ends Disability Self-ID and 7% Utilization Goal for Federal Contractors
On August 20, 2026, DOL finalized rules removing disability self-ID mandate and 7% utilization goal for federal contractors under Section 503.
Why it matters: Federal contractors must revise affirmative action plans to avoid compliance risks amid these significant OFCCP regulatory changes.
- On August 20, 2026, DOL finalized rules limiting OFCCP’s authority to audit contractor bias under Executive Order 11246.
- Section 503’s 7% utilization goal for hiring individuals with disabilities has been eliminated for federal contractors.
- The disability self-identification form (Form CC-305) is extended for voluntary use through July 31, 2029.
- Cross-references to EO 11246 were removed from the Veterans Readjustment Assistance Act and Section 503 rules, reducing OFCCP oversight.
On August 20, 2026, the U.S. Department of Labor (DOL) finalized new rules that significantly reduce the regulatory powers of the Office of Federal Contract Compliance Programs (OFCCP) regarding affirmative action compliance for federal contractors.
Specifically, the rules eliminate the requirement for contractors to meet or track a 7% utilization goal for employing individuals with disabilities, which was established under Section 503 of the Rehabilitation Act. This goal aimed to ensure that at least 7% of employees in each job group were persons with disabilities.
The DOL also removed the mandate for disability self-identification via the OFCCP’s Form CC-305. While contractors may continue to offer this form voluntarily, they are no longer required to collect or report this data as part of their affirmative action obligations. The voluntary use of Form CC-305 has been extended through July 31, 2029.
Further, the updated rules limit OFCCP’s authority to audit federal contractors for potential race and sex discrimination under Executive Order 11246. Notably, the final rule removed cross-references to EO 11246 in related laws such as the Veterans Readjustment Assistance Act and Section 503, narrowing the scope of OFCCP oversight.
These regulatory changes mark a clear departure from previous enforcement approaches and require federal contractors and their legal teams to adjust affirmative action programs accordingly. Compliance strategies must now account for the absence of specific disability hiring targets and voluntary self-identification processes.
This regulatory shift has been reported independently by Bloomberg Law and Law360, confirming the changes' significant impact on federal contractor obligations.
By the numbers:
- 7% utilization goal — Eliminated for individuals with disabilities under Section 503 for federal contractors
- July 31, 2029 — Extended voluntary use deadline for Form CC-305 disability self-identification
- August 20, 2026 — Date DOL finalized these OFCCP regulatory changes
Yes, but: While the OFCCP’s auditing powers are reduced, some obligations under affirmative action remain for federal contractors, including other non-discrimination requirements.
What's next: Federal contractors should review and update affirmative action policies immediately to align with these new rules and prepare for potential future guidance from DOL.