OFCCP Issues Final Rule Removing Disability Tracking and Utilization Goals

Summary — The OFCCP’s Final Rule eliminates federal affirmative action requirements related to race, gender, and ethnicity and removes disability self-identification and the 7% utilization goal for covered federal contractors. While contractors must maintain disability-related affirmative action plans focused on outreach and recruitment, they are no longer required to collect disability data or conduct utilization analyses. Veteran-related affirmative action requirements remain in place, although the contract coverage threshold has increased from $150,000 to $200,000. Employers should also be mindful that state requirements may differ from the new federal rules.

As we reported back in January 2025, through an Executive Order signed by President Trump on his first day in office, the federal government effectively ended all Affirmative Action Plans and programs relating to data collection, reporting, and utilization goals based on race, gender, and ethnicity. At that time, disability and veteran reporting and hiring goals under the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1972 (VEVRAA) were still in effect. That is no longer the case. 

On August 21, 2026, OFCCP published a Final Rule in the Federal Register rescinding disability-related data collection and utilization goals under the Rehabilitation Act. Specifically, the Final Rule:

• Removes the requirement on employers to invite applicants or employees to self-identify as individuals with disabilities effective September 21, 2026;
• Retires OMB Form CC-305 for applicant and employee self-identification and prohibits employers from using such form;
• Removes the 7% disability utilization goal and required utilization analysis under 41 CFR 60-741.45;
• Removes any associated applicant/hire data-collection calculations requirements under 41 CFR 60-741.44(k); and
• Rescinds employers’ obligation to solicit disability status from all applicants and from employees at time of hire and again every five years.

The OFCCP has taken the position that the Americans with Disabilities Act (ADA) bars employer inquiries into an applicant’s status as an individual with a disability. So, even though an employee is free to choose not to disclose disability status, in the Administration’s view the self-identification and reporting requirements do not align with the ADA. Post-offer disability inquiries should be handled only in accordance with the ADA, following EEOC regulations. Federal contractors and subcontractors with 50 or more employees and a federal contract of $50,000 or more are still required to maintain a written Affirmative Action Plan for disabled individuals and have it available for inspection, but the Affirmative Action Plan now only serves to provide information on disability-related outreach and recruiting efforts. Yet, because collection of employee and applicant disability data is not permitted, it is difficult to understand how employers will be able to assess the effectiveness of those outreach efforts. 

In addition, the OFCCP has also formally rescinded all of the federal regulations that implemented the now-rescinded Executive Order 11246, see here. As a result, all Affirmative Action Plan requirements under prior federal regulations relating to race, gender, and ethnicity are fully eliminated from current federal law. 

Finally, the OFCCP made a minor revision to the federal regulations under VEVRAA increasing the threshold for employer coverage from $150,000 to $200,000. Federal contractors and subcontractors with 50 or more employees and a contract of $200,000 or more must still maintain a written VEVRAA Affirmative Action Plan. Such employers will therefore still need to track applicant and employee data on veteran status. 

In sum, federal contractors and subcontractors must terminate or suspend (if they have not already done so) Affirmative Action Plans and programs related to race, gender, and ethnicity. They also should eliminate the 7% utilization goal, utilization analyses, and disability data collection from any Affirmative Action Plans and programs relating to disability and must cease inviting applicants and employees to self-identify as an individual with a disability. Covered federal contractors and subcontractors should continue to prepare VEVRAA-related Affirmative Action Plans relating to veterans. 

Also, employers should note that these new federal regulations modify only federal law. State laws and state contracting requirements may be different. Employers should consult with legal counsel to ensure compliance with both federal and state contract requirements.