Effective Sept. 21, 2026, the U.S. Department of Labor (DOL) significantly revised the affirmative action requirements applicable to federal contractors under Section 503 of the Rehabilitation Act. Most notably, the new Final Rule eliminates the requirement that federal contractors ask applicants and employees to voluntarily self-identify as individuals with disabilities using Form CC-305.
Since 2013, covered federal contractors have been required to invite applicants and employees to voluntarily disclose whether they have a disability. Contractors were also required to collect related disability data and evaluate whether individuals with disabilities comprised at least 7% of each job group in their workforce. The Final Rule eliminates these requirements.
In doing so, the DOL concluded that the prior self-identification requirement conflicted with the Americans with Disabilities Act (ADA). Although completion of Form CC-305 was voluntary for applicants and employees, DOL reasoned that providing the form was itself an employer-initiated disability inquiry. According to the DOL, characterizing the disclosure as voluntary does not change the fact that the employer has asked an applicant or employee to provide disability information.
Section 503’s underlying obligation to take affirmative action to employ and advance qualified individuals with disabilities remains in place. However, contractors are no longer required to solicit disability self-identification through Form CC-305, collect the associated disability data or measure their workforce against the former 7% utilization goal. Federal contractors should therefore discontinue use of Form CC-305 for Section 503 compliance. Contractors should not simply replace it with their own disability self-identification form for the same purpose. Contractors should also review and update their affirmative action plans and related policies to remove the former disability self-identification, data collection and 7% utilization requirements.
Importantly, the Final Rule does not eliminate Section 503 or the ADA’s reasonable accommodation requirements, nor does it prohibit every disability-related inquiry. Employers may still make certain disability-related inquiries when permitted by the ADA, including inquiries associated with the reasonable accommodation process. Employers may also ask applicants whether they can perform job-related functions and, in appropriate circumstances, discuss accommodations necessary to perform those functions.
