OFCCP New Rule Eliminates Disability Self-Identification and Utilization Requirements for Federal Contractors

Federal contractors should take notice of a recent regulatory change that eliminates several disability-related obligations, and as a result may require changes to their hiring and employment practices. The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”) has issued a Final Rule revising the implementing regulations of Section 503 of the Rehabilitation Act of 1973 (“Section 503”). Under the new rule, effective September 21, 2026, federal contractors are no longer required to: (i) invite applicants and employees to self-identify as individuals with disabilities; (ii) submit Form CC-305 or otherwise retain disability-related data; or (iii) meet a 7% disability utilization goal. Notwithstanding these changes, covered federal contractors must continue to prohibit disability discrimination and provide reasonable accommodations to qualified individuals with a disability, take affirmative action to employ and advance qualified individuals with disabilities and maintain affirmative action programs (“AAPs”), and otherwise comply with the remaining Section 503 requirements. 

Why the Change?

The Final Rule includes OFCCP’s opinion that an employer’s invitation to applicants and employees to self-identify as an individual with a disability—even when expressly characterized as voluntary—constitutes an employer-initiated disability-related inquiry. OFCCP has stated that such an inquiry conflicts with the Americans with Disabilities Act’s (“ADA”) prohibition on disability-related inquiries of applicants before a conditional offer of employment and that such inquiries are only permissible when they are job-related and consistent with business necessity. As OFCCP explained: “A truly voluntary disclosure occurs when an applicant or employee volunteers his or her disability self-identification without being asked. When an employer hands the employee a form, that is clearly a request for information.” OFCCP further reasoned that the Section 503 utilization framework depended on the job-group structure established under Executive Order 11246, which was revoked in January 2025, leaving the framework without its analytical foundation.

What Specific Requirements Were Eliminated by the Final Rule?

The Final Rule rescinds the following Section 503 requirements:

• Form CC-305 and invitations to self-identify. The Final Rule discontinues Form CC-305, the Voluntary Self-Identification of Disability form in use since 2013, and eliminates the obligation to invite applicants and employees to self-identify as individuals with disabilities (at both the pre-offer and post-offer stages). OFCCP has stated that the Final Rule does not preclude contractors from exercising their own judgment regarding disability-related inquiries, provided that any continued voluntary data collection complies with the ADA and all other applicable laws.
• Disability data collection and computations. The Final Rule removes 41 C.F.R. § 60-741.44(k), which required contractors to collect and analyze specified disability-related data and to perform prescribed annual computations.
• The 7% utilization goal. The Final Rule removes 41 C.F.R. § 60-741.45 in its entirety, eliminating both the nationwide 7% utilization goal for individuals with disabilities and the corresponding obligation to conduct annual utilization analyses and assess problem areas. 

What Disability-Related Obligations Remain in Effect?

Under Section 503, covered federal contractors (i.e., those with 50 or more employees and a federal contract or subcontract of $50,000 or more) must continue to develop and maintain a written AAP for individuals with a disability. The AAP must include an assessment of outreach and recruitment efforts, the review of personnel processes and physical and mental job qualifications, and the satisfaction of internal audit and reporting obligations. The general recordkeeping requirements of 41 C.F.R. § 60-741.80 likewise remain in effect.

The Final Rule also leaves intact Section 503’s core nondiscrimination protections, reasonable accommodation obligations, and outreach and recruitment requirements. The change is the manner in which contractors may demonstrate and measure their affirmative action efforts. Quantitative metrics premised on individual disability status are no longer required. Instead, covered contractors may utilize a compliance model that is centered on job-description review, accessible application and hiring systems, and structured outreach that does not depend on knowing whether individuals have a disability. 

What Should Federal Contractors Do?

Covered federal contractors should review their Section 503 compliance policies and practices to determine what changes may be needed as a result of the Final Rule, and how to go about implementing those changes. Federal contractors should immediately stop using Form CC-305, but should continue to preserve any disability-related data that was previously collected consistent with the ADA’s confidentiality requirements and applicable recordkeeping obligations.

While OFCCP’s Final Rule eliminates certain disability-related requirements for federal contractors, employers that also contract with state agencies will want to consider whether they may continue to have similar disability-related obligations under applicable state law. In consultation with legal counsel, contractors should therefore consider whether, in light of the recent regulatory change, it makes sense to continue asking applicants and employees to voluntarily self-identify as individuals with disabilities during the hiring process or otherwise. Absent any obligation under federal or applicable state law that requires contractors to ask applicants and employees to voluntarily self-identify as individuals with disabilities, contractors may be taking on unnecessary risk in continuing to ask individuals to voluntarily provide such information when it is not legally required.

Contact

For assistance in understanding the recent regulatory change or evaluating its impact on your employment policies, please contact your local Quarles attorney or:

• Tyler Roth: (414) 277-5765 / tyler.roth@quarles.com
• Brenna Vargas: (414) 277-5328 / brenna.vargas@quarles.com

Please also visit our Federal Policy Watch: Monitoring White House Developments page for more insight about navigating changes at the federal level.