DOL Rewrites Disability Rules for 'Merit-Based Opportunity' Push
Published Date: 8/21/2026
Rule
Summary
The U.S. Department of Labor is revising its implementing regulations for Section 503 of the Rehabilitation Act of 1973, as amended (Section 503). The revisions align the regulations with applicable law and recent 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."
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
No more mandatory disability questions
If you apply for or work for a federal contractor, the rule removes the regulation (41 CFR 60-741.42) that required contractors to invite applicants and employees to identify whether they are individuals with a disability. This change takes effect September 21, 2026 and ends the pre-offer and recurring (every 5 years) employer-initiated disability inquiries described in the prior rule.
Reduced contractor disability data collection
Federal contractors will no longer be required to document and maintain the specific computations or comparisons about applicants and hires with disabilities under 41 CFR 60-741.44(k). This change is effective September 21, 2026 and reduces contractor recordkeeping and employer-held disability data generated under the prior rule.
7% utilization hiring goal rescinded
The rule rescinds the 7 percent utilization goal and the related utilization analysis and required action-oriented programs in 41 CFR 60-741.45. This rescission is effective September 21, 2026 and removes the prior requirement that contractors measure job-group representation of individuals with disabilities against a 7% goal and take specified corrective steps if under that goal.
Coverage threshold raised to $20,000
The rule updates the Section 503 basic coverage threshold so that the nondiscrimination and recordkeeping requirements apply to contractors with a government contract in excess of $20,000; that threshold increase took effect October 1, 2025. The final rule makes technical edits throughout the regulations to reflect this $20,000 threshold.
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Previous / Next Documents
Previous: 2026-17114, Rescission of Executive Order 11246 Implementing Regulations
On January 21, 2025, President Trump issued Executive Order 14173, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," which revoked Executive Order 11246. Accordingly, the U.S. Department of Labor publishes this final rule to rescind the implementing regulations for Executive Order 11246.
Next: 2026-17116, Modifications to the Regulations Implementing the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as Amended
The U.S. Department of Labor publishes this final rule to revise its implementing regulations for the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended (VEVRAA). These revisions will align the regulations with Executive Order 14173 and remove the VEVRAA regulations' cross-references to the Executive Order 11246 authority. Executive Order 11246 was revoked by Executive Order 14173 on January 21, 2025. This final rule also makes technical revisions to update the VEVRAA regulations' jurisdictional thresholds, which were adjusted for inflation by the Federal Acquisition Regulation Council on October 1, 2025.