Labor & Employment Law Daily Wrap Up, FEDERAL REGULATIONS—DOL proposes to rescind regulations requiring Federal contractors to invite applicants and employees to self-identify as disabled, (Jul 10, 2025)
Organizations Mentioned:Office of Federal Contract Compliance Programs
By Brandi O. Brown, J.D.
It also proposes to rescind a requirement for contractors to apply a seven percent utilization goal for employment of qualified individuals with disabilities either based on job groups or the entire workforce in certain circumstances.
Along with other proposed rules published last week, the Department of Labor’s Office of Federal Contract Compliance Programs published a proposed rule and requested comments relating to its implementing regulations for Section 503 of the Rehabilitation Act of 1973. According to the agency, the proposed revisions will better align those regulations with recent case law and executive orders, including Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” and Executive Order 14219, “Ensuring Lawful Governance and Implementing the President's `Department of Government Efficiency' Deregulatory Initiative.”
Specifically, DOL proposes to remove references to E.O. 11246, which was revoked by E.O. 14173, as well as to rescind the regulations at 41 CFR 60-741.42, which require contractors to invite applicants and employees to self-identify their disability status, as well as the utilization goal requirements at 41 CFR 60-741.45. The latter provision requires contractors to apply a seven percent utilization goal for employment of qualified individuals with disabilities to each of their job groups, or to their entire workforce if the contractor has 100 or fewer employees. The regulations also require covered contractors to conduct a utilization analysis and, when the percentage is less than the utilization goal established, to take certain steps and make certain assessments.
“While the Section 503 regulations state that the use of quotas is prohibited,” the proposal states, “contractors may, in practice, be induced to using quotas to meet the utilization goal. DOL has concerns that the self-identification and utilization goal regulations are inconsistent with the ADA.”
Comments must be received by September 2, 2025. Thus far, 15 comments have been posted.
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