Constangy Webinar - The New Section 503: What Changed, What Remains, and What Contractors Should Do Next
In this webinar, Constangy partners Jo Bennett and Cara Crotty explain how the OFCCP’s final rule has reshaped federal contractors’ affirmative action obligations toward individuals with disabilities under Section 503 of the Rehabilitation Act. They cover what the rule removed and what remains, the Department of Labor’s new position on disability self-identification under the ADA, and contractors’ options for collecting disability information. They also discuss how to handle historical data, state-level requirements, and how to assess affirmative action efforts without quantitative data.
What Changed Under the New Section 503 Final Rule?
Jo walks through the regulatory timeline, from the 2014 rule that introduced mandatory self-identification and the 7 percent utilization goal to the final rules published in August 2026. She explains the specific mechanisms the rule eliminates, the updated coverage thresholds, and why Section 503, as a statute rather than an executive order, continues to impose nondiscrimination and affirmative action obligations. She also covers the rule’s two implementation dates and how the changes interact with VEVRAA requirements for protected veterans.
Why Does the Department of Labor Now Say Disability Self-Identification Conflicts With the ADA?
Cara explains how the Department of Labor reversed the position it took in 2013 and now views employer-initiated disability inquiries as inconsistent with the ADA. She covers how the ADA treats disability inquiries at the pre-offer, post-offer, and employment stages, and why, in the agency’s view, labeling an invitation as voluntary does not resolve the issue.
Should Federal Contractors Continue Collecting Disability Information?
Cara outlines three models contractors can consider, from stopping disability inquiries altogether to retaining a narrower post-offer process to shifting toward other data sources. She addresses whether contractors should keep using Form CC-305, state requirements that may still call for disability self-identification, and the questions organizations should ask before deciding. She also discusses retaining historical disability data and communicating the change to employees.
How Can Contractors Assess Section 503 Compliance Without Quantitative Data?
Jo discusses practical, qualitative ways to monitor and strengthen Section 503 compliance now that the data analytics requirements are gone. She covers targeted revisions to the written AAP, how to evaluate outreach effectiveness without disability counts, and reviews of application accessibility, job descriptions, accommodation processes, harassment policies, and manager training. She also explains how Legal, HR, Talent Acquisition, and HRIS stakeholders can coordinate on implementation, and what GAO’s October 2026 report on Section 503 enforcement means for contractors.
Key Takeaways for Employers
- Update Section 503 affirmative action plans and HR systems to remove Form CC-305, applicant and hire disability data calculations, and the 7 percent utilization analysis, while keeping remaining obligations in place.
- Continue inviting protected veterans to self-identify, since VEVRAA self-identification and data requirements remain unchanged.
- Be cautious about continuing any pre-offer disability inquiry, and identify a specific legal basis under the ADA for any disability inquiry your organization keeps.
- Check whether state contractor or apprenticeship requirements still obligate your organization to invite disability self-identification.
- Retain existing disability data in line with record retention requirements, litigation holds, and audit needs, and keep it confidential and separate from decision makers.
- Replace quantitative metrics with qualitative measures, such as tracking accommodation requests, response times, and outcomes, and reviewing outreach and application accessibility.
Related Resources
Webinar Speakers
Jo Bennett
Partner
Jo advises and represents employers in all aspects of labor and employment law, including wage and hour compliance, disability accommodations, leaves of absence, and workplace investigations. She has extensive experience advising government contractors on federal and state EEO compliance obligations. Her litigation practice covers individual lawsuits, class and collective actions, arbitrations, and administrative proceedings under the ADA, FMLA, Title VII, and wage and hour laws. Jo also serves as a mediator for the EEOC.
Cara Crotty
Partner
Cara guides employers through complex workplace compliance issues, with a particular focus on federal contractor obligations, pay equity, and DEI-related compliance. She co-chairs Constangy’s EEO/Contractor Compliance, Reporting & Analytics and DEI Compliance practice groups. She counsels federal contractors on affirmative action compliance under Section 503 and VEVRAA, including AAP preparation, EEO-1 and VETS-4212 reporting, and compliance evaluations. Before joining Constangy, Cara was an Attorney-Advisor in the U.S. Department of Labor’s Office of Administrative Law Judges.
