The Office of Federal Contract Compliance Programs (OFCCP) published three final rules on August 21, 2026, that significantly roll back affirmative action requirements for federal contractors.
Key Regulatory Changes and Effective Dates:
- September 21, 2026 – Section 503 Disability Updates: Ends the 7% utilization goal, Form CC-305, and disability self-identification invitations for applicants and employees to self-identify as an individual with a disability at the time of hire and every five years thereafter. Individuals, however, may volunteer this information when seeking reasonable accommodations, and contractors may make these inquiries if independently lawful.
- Eliminates the 7 percent utilization goal under 41 CFR 60-741.45
- Eliminates the corresponding utilization analysis of individuals with disabilities
- Eliminates disability data collection obligations previously required;
- Removes cross-references to the now-rescinded EO 11246 and adds the administrative procedures outlined in 41 CFR 60-30 directly into Section 503 regulations, effective December 21, 2026; and
- Updates the references to the basic coverage threshold for Section 503 from $15,000 to $20,000, which increased effective October 1, 2025.
Covered contractors remain subject to disability nondiscrimination, reasonable accommodation and written affirmative action plan requirements for contractors meeting the 50-employee and $50,000 threshold. Annual outreach assessments, audit and reporting systems, notice and posting, inclusion of the equal employment opportunity clause in subcontracts and purchase orders, and recordkeeping requirements including three-year retention of outreach records also remain.
- September 21, 2026 – VEVRAA Adjustments: Updates coverage thresholds and technical rules for protected veterans. DOL enacted minor, technical changes to VEVRAA regulations by removing EO 11246 cross-references; relocating administrative enforcement procedures to 41 CFR Part 60-300, consistent with the changes enacted to Section 503; and removing a duplicative Section 503 authority citation. The biggest substantive change is the decision to raise the contract amount threshold from $150,000 to $200,000 for written affirmative action plan requirements. Notably, unlike under Section 503, the final rule left in place the obligations for federal contractors to track applicant data and solicit veteran status from new hires. Outreach and hiring benchmarks, VETS-4212 reporting and reasonable accommodation obligations remain as well.
- September 21, 2026 – Update Systems: Remove disability self-invitations and banned data collection from applicant tracking systems.
- October 26, 2026 – Executive Order 11246 Rescission: Formally eliminates race- and sex-based affirmative action regulations. The final rule now rescinds EO 11246’s implementing regulations in 41 CFR chapter 60. Together with EO 14173, the final rule ends government-mandated affirmative action for women and minorities.
The rescission does not, however, affect other existing nondiscrimination requirements including, but not limited to, under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 1981, the Equal Pay Act, state and local law and regulations, or contract-specific nondiscrimination provisions.
- Maintain Core Duties: Keep disability outreach, accommodation procedures, and veteran compliance programs active.
Contractors should consult with employment counsel regarding their current affirmative action programs and practices to ensure that they are meeting their continuing affirmative action obligations, while not continuing previously required practices that now could give rise to risk and exposure.
At a minimum, they should remove the mandatory Form CC-305 self-identification process and the 7 percent utilization analysis from their disability compliance workflows by September 21, 2026. They should also consult counsel before continuing any voluntary, employer-initiated collection or analysis of disability data.
Finally, it is critical for contractors not to lose sight of state and local affirmative action requirements to which they may be subject, and to consult with counsel regarding the often-complicated interplay between those requirements and the current enforcement positions of the DOL and EEOC at the federal level.
Our Business Advisors at Rocket City HR Consulting are here to help with this and other compliance issues for both private and government contractor employers. Contact us today – We would love to assist you with any of your HR needs.
Source: https://www.duanemorris.com/alerts/ofccp_finalizes_three_rules_resetting_federal_contractor_affirmative_action_requirements_0826.html
By Karen Burton, SHRM-SCP, SPHR
