Federal Contractor Affirmative Action Shift: OFCCP Ends Disability Self-ID and Utilization Requirements

Key Highlights:

• Effective Sept. 21, 2026, OFCCP’s final rule eliminates the invitation to self-identify disability status (Form CC-305), related disability applicant and hire data collection, and the 7% utilization goal and analysis.
• The rule does not eliminate other Section 503 of the Rehabilitation Act (Section 503) requirements: covered contractors must still comply with disability nondiscrimination requirements and maintain applicable affirmative action obligations.

After more than a decade at center stage in Section 503 compliance, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs’ (OFCCP) 7% disability utilization goal is headed for the exit—and Form CC-305 is leaving with it. On Aug. 21, 2026, the U.S. Department of Labor published a final rule eliminating the requirement to use Form CC-305, the related disability data-collection requirements and the 7% utilization goal.

The History of Section 503

Section 503 prohibits covered federal contractors and subcontractors from discriminating against qualified individuals with disabilities and requires them to take affirmative action to employ and advance those individuals. As part of that compliance framework, OFCCP has required certain covered contractors to invite applicants and employees to voluntarily self-identify as having a disability using Form CC-305. For more than a decade, contractors have used the resulting data, among other things, to assess their workforce against OFCCP’s 7% utilization goal for individuals with disabilities.

OFCCP’s 7% utilization goal required covered contractors to annually compare the representation of individuals with disabilities in their workforce against a 7% benchmark. The goal was not a hiring quota, but rather a tool intended to help contractors assess the effectiveness of their disability affirmative action efforts.

The New Rule

But that framework is now changing. OFCCP’s final rule eliminates several of the more prescriptive compliance requirements that have defined Section 503 affirmative action planning in recent years. Most notably, covered contractors will no longer be required to invite applicants and employees to voluntarily self-identify as individuals with disabilities using Form CC-305, maintain the related disability applicant and hire data, or measure their workforce against OFCCP’s 7% utilization goal. The rule also removes the requirement to conduct the annual utilization analysis tied to that benchmark.

Importantly, the rule does not eliminate Section 503 itself or contractors’ broader obligations under it. Covered federal contractors and subcontractors remain subject to Section 503’s nondiscrimination requirements and must continue to take affirmative action to employ and advance qualified individuals with disabilities. Contractors that are required to maintain a written Section 503 affirmative action program must continue to do so and must still evaluate the effectiveness of their affirmative action efforts.

In short, the rule simply removes the mandatory self-identification, disability data- racking and 7% utilization framework, but leaves intact the underlying affirmative action and nondiscrimination obligations.

Implementation

The rule does not take effect upon publication. Instead, the changes become effective on Sept. 21, 2026. OFCCP has also confirmed that Form CC-305, the Voluntary Self-Identification of Disability form, will be discontinued effective Sept. 21. Accordingly, contractors should continue to follow the existing disability self-identification requirements through Sept. 20 and should be prepared to discontinue use of Form CC-305 and the associated utilization analyses beginning Sept. 21.

What Can Federal Contractors Do Next

Though the 7% benchmark may be headed for the exit, compliance with Section 503 is not. Federal contractors may consider using the period before Sept. 21 to review recruiting, applicant-tracking, onboarding and employee self-identification processes, coordinate with third-party vendors that administer Form CC-305 and update their Section 503 affirmative action plan procedures to reflect the requirements that remain in place.

Contractors should also consider whether any state, local or other legal requirements independently require collection or retention of disability-related information before changing their processes.

For questions about the final rule or how these changes affect your organization’s affirmative action program, please contact your Polsinelli attorney.