The Office of Federal Contract Compliance Programs (“OFCCP”) has finalized three important rules that significantly alter affirmative action requirements for federal contractors and subcontractors. These developments are part of a broader shift in United States law and policy concerning affirmative action programs, affirmative action policies, and affirmative action practices.
The rules were published on August 21, 2026, and continue the changes to regulations that began in January of 2025, with Executive Order 14173. This Executive Order rescinded the long-standing Executive Order 11246 that was signed by President Lyndon B. Johnson in 1965.
Changes to Section 503 Disability Requirements
The requirements under Section 503 of the Rehabilitation Act have been significantly narrowed.
As of September 21, 2026, contractors are no longer required to do the following:
- Invite applicants and employees to voluntarily self-identify as individuals with disabilities using Form CC-305.
- Conduct utilization analyses related to disability representation.
- Collect disability data previously required under the regulations.
- Maintain the 7% utilization goal for individuals with disabilities.
The rule also updates the Section 503 contract coverage threshold from $15,000 to $20,000 to reflect inflation-related adjustments.
Many key requirements under Section 503 remain. Federal contractors and subcontractors still have the following obligations:
- Comply with disability nondiscrimination obligations;
- Comply with audit and reporting requirements;
- Provide reasonable accommodations;
- Conduct outreach assessments;
- Preserve required records; and,
- Maintain written affirmative action plans when applicable.
End of Race and Sex Based Affirmative Action Requirements
The new rules also formally rescinded the regulations that implemented Executive Order 11246. These developments are part of a broader shift in United States law and policy concerning affirmative action programs, affirmative action policies, and affirmative action practices.
Under the final rules issued in August of this year, the implementation of regulations contained in multiple sections of 41 CFR Chapter 60 has been eliminated. This elimination effectively ends federal requirements for race- and sex-based affirmative action plans (“AAPs”) and the enforcement authority of the OFCCP related to these requirements.
It is important for employers to keep in mind that even though these requirements have been eliminated, state, federal, and local anti-discrimination laws, such as Title VII of the Civil Rights Act and NRS Chapter 613, are still in effect, and employers must remain compliant with those obligations and take action to prevent employment discrimination in their workplaces.
Veteran Requirements under VEVRAA Remain
Changes to the Vietnam Era Veterans’ Readjustment Assistance Act (“VEVRAA”) are primarily technical amendments to regulations. These changes include removing obsolete references to Executive Order 11246, eliminating duplicative regulatory citations, and relocating enforcement procedures. The most notable change is an increase in the contract threshold requiring affirmative action plans from $150,000 to $200,000.
It is important to note that the substantive affirmative action requirements are largely unchanged for VEVRAA under this new rule. Federal contractors are still obligated to solicit self-identification by asking employees to voluntarily self-identify as protected veterans; applicant and hiring data must continue to be tracked; employers must comply with outreach and benchmark requirements; and must submit VETS-4212 reports.
Steps to Take for Employers
- Pursuant to the changes to Section 503, employers should end the mandatory self-identification process and any related utilization analysis as of September 21, 2026.
- Continue to comply with existing disability accommodation, outreach, recordkeeping, and non-discrimination obligations under Section 503.
- All VEVRAA-related compliance activities, including self-identification and reporting obligations, should be maintained.
- Disability and veteran related data collection practices should be evaluated to ensure compliance with new rules.
- Review state and local affirmative action requirements to ensure compliance, as they may still apply.
By: Cara Sheehan, Esq.
