Attention Federal Contractors: The DOL’s New Disability Compliance Rule Is Now In Effect — What Goes, What Stays, And What’s Next

A new rule from the U.S. Department of Labor (“DOL”) took effect on Monday, September 21, 2026, eliminating the requirement for employers with federal contracts to inquire, collect, and utilize disability-related data for the purpose of carrying out required affirmative action programs. 

The DOL’s Office of Federal Contract Compliance Programs (“OFCCP”) published the final rule on August 21, 2026, providing employers with federal contracts only 30 days to implement the changes. The rule overhauls the disability-related compliance requirements under Section 503 of the Rehabilitation Act of 1973. These changes are part of a broader regulatory shift targeting affirmative action programs following the rescission of Executive Order 11246 (a directive signed by President Lyndon Johnson in 1965 mandating equal employment opportunity in federal contracts, and rescinded by President Donald Trump on January 21, 2025). 

The bottom line: federal contractors no longer need to use the CC-305 form, collect disability-related data, or track progress toward the 7% disability utilization goal. However, employers should note that the final rule does not alter an employer’s obligation to maintain an affirmative action program for individuals with disabilities and to refrain from disability discrimination.

Here’s what changed, what didn’t, and what federal contractors should be thinking about now.

What’s Been Eliminated

The final rule targets three requirements that the DOL determined created tension with the Americans with Disabilities Act (“ADA”), which prohibits employers from “mak[ing] inquiries of a job applicant as to whether such applicant is an individual with a disability.” 42 U.S.C. § 12112(d)(2)(A). The following requirements have been eliminated:

• Self-Identify Disability Status. Federal contractors were previously required to invite applicants and employees to self-identify their disability status using the CC-305 form. That requirement is gone. The DOL did note, however, that it does not prohibit an employer from collecting pre-employment disability information where there is a lawful basis to do so, such as when the essential duties of the position contain certain physical requirements.
• Data collection. The rule rescinds 41 CFR § 60-741.44(k), which required federal contractors to document and maintain specific computations pertaining to applicants and hires with disabilities and to make them available to the OFCCP on request.
• The 7% utilization goal. The rule removes 41 CFR § 60-741.45, which established a 7% disability utilization goal and required contractors to develop “action-oriented programs” when certain job groups fell short. The new regulations also make clear that contractors “are not required to consider quantitative data on the numbers of individuals with disabilities who were referrals, applicants, or hires when assessing their outreach efforts and affirmative action program.” 41 CFR § 60-741.44(l).

What Remains

While the three above requirements were removed altogether, several core obligations remain untouched by the modifications to the Section 503 regulations:

• Federal contractors must still take affirmative action to employ and advance individuals with disabilities and treat qualified individuals without discrimination on the basis of their disability. 41 CFR § 60-741.5.
• Annual outreach and recruitment efforts must continue, and contractors must evaluate their effectiveness. 41 CFR § 60-741.44(f)(2)(i)(E)(3).
• Contractors must maintain an audit and reporting system to assess the effectiveness of their affirmative action program. 41 CFR § 60-741.44(h).
• The duty to provide reasonable accommodations under pre-existing law is unchanged. 41 CFR § 60-741.21(a)(6).

What Compliance Looks Like Now

With the data collection requirements gone but the affirmative action obligations still intact, the obvious question is: what does compliance actually look like? The DOL’s publication of the final rule offered a non-exhaustive list of examples:

• Skills-based barrier analysis and remediation. Review job descriptions, vacancies, job requirements, and physical or mental standards to eliminate requirements that are not essential to performing the job (e.g., lifting, standing, or driving a car).
• Structured outreach and recruitment. Partner with disability employment organizations such as vocational rehabilitation agencies, centers for independent living, and disability service providers.
• Disability-accessible hiring systems. Ensure that online applications, assessments, and hiring platforms are accessible to applicants using assistive technologies.
• Proactive interactive processes for reasonable accommodations. Take affirmative action where an employee makes an unsolicited disclosure of a disability, for example, by engaging in the interactive process proactively.

What Employers Should Do Now

Federal contractors should review their current processes in light of the new rule. This means employers may no longer use the CC-305 form or otherwise inquire about an applicant’s disability status pre-employment unless there is a lawful basis to do so. Employers with federal contracts should also consider their disability data collection and affirmative action practices to ensure they are guided by the DOL’s new rule, while maintaining compliance with the ADA. 

Federal contractors should also be aware that some state and local laws may independently require employers with state or local government contracts to provide disability-related data or invite applicants to identify as disabled. These state and local requirements may pose conflicts with the final rule. Employers operating in jurisdictions with competing requirements will need to carefully evaluate how to navigate the intersection of these obligations.

For questions or guidance about these developments, please contact a member of Kelley Drye’s Labor and Employment team.