The U.S. Department of Labor is moving to roll back key provisions under Section 503 of the Rehabilitation Act, including a decade-old 2013 regulation that sets a 7% workforce goal for federal contractors to hire persons with disabilities.
“While the Section 503 regulations state that the use of quotas is prohibited, contractors may, in practice, be induced to using quotas to meet the utilization goal. DOL has concerns that the self-identification and utilization goal regulations are inconsistent with the ADA. Section 60-741.45 sets out utilization goals for persons with disabilities, as well as requiring outreach and recruitment of individuals with disabilities. Inherent in any utilization goal, however, is the need for applicants with disabilities to identify their conditions to the employer. But the ADA is clear; an employer may not, prior to an offer of employment, make any disability-related inquiries, even if that inquiry is related to the job.” the Labor Department says in its recent July 1 proposal.
According to the American Association of People with Disabilities (AAPD), removing the 7% goal and related tracking measures would eliminate one of the few enforceable tools that hold federal contractors accountable for hiring persons with disabilities. “The Department of Labor’s new regulatory proposals make it far harder for disabled workers in the United States to access those very equal employment opportunity tools.” said Maria Town, AAPD President and CEO.
The public comment on the proposed rule closes September 2, 2025.
