The Department of Labor has agreed with six of eight disability employment recommendations published by the Government Accountability Office (GAO) in a recent report. In this compliance alert, we look at the full list of recommendations—both agreed and disputed—and explore what the GAO’s intervention may mean for the DOL, OFCCP, and federal contractors regarding recently rewritten Section 503 rules.
Summary
On September 29, the Government Accountability Office (GAO) published report GAO-26-107937 “Disability Employment: DOL Should Enhance Monitoring and Guidance for Federal Contractors.”
Noting that the DOL is tasked with overseeing how federal contractors implement Section 503, the GAO observes that the department has suspended much of its oversight—including audits of selected contractors (532 of which uncovered Section 503 violations between FY 2017 and 2025) and changes to Section 503 regulations. It also says the dramatic reduction of full-time employees at the OFCCP was “not informed by strategic workforce planning consistent with key principles for such efforts.”
Accordingly, the GAO’s report makes eight recommendations to the DOL, and the DOL has since agreed with six of them. These undisputed recommendations include actions for the Secretary of Labor to ensure:
- An OFCCP analysis of trends in reasons for closing or referring Section 503 complaints that are not appropriate for it to investigate
- A reassessment of the OFCCP’s current workforce that aligns headcount with current and future needs
- The provision of resources on the OFCCP website that can help contractors recruit employees with disabilities
- The addition of a reasonable accommodations section on the OFCCP website, with links to resources explaining how employers can provide reasonable accommodations
- The development and publication of resources on how to assess outreach and recruitment efforts required by Section 503 regulations
- The publishing of a list of best practices for Section 503 compliance on the OFCCP website
However, the DOL chose to neither agree nor disagree with two further recommendations:
- The Secretary of Labor should ensure that OFCCP resumes collecting certification of AAPs from contractors through its Contractor Portal or other mechanism
- The Secretary of Labor should ensure that OFCCP resumes audits related to Section 503 compliance
The DOL states that it does not plan to resume Section 503 AAP certifications or audits and that it is “in the process of evaluating its compliance activities in light of recent regulatory changes.” It also claims that it continues to enforce Section 503 through complaint investigations.
Who Is Impacted and What Actions Are Required?
There are no new actions required for federal contractors at this time, but it is nonetheless interesting to see a congressional body challenge the DOL on its current handling of its Section 503 oversight responsibilities, and suggest that certification and auditing return in their pre-2025 form.
Contractors should be aware of recent changes to Section 503 that came into effect on September 21: they are no longer required to invite disability self-identification, use Form CC-305, or measure against a 7% utilization goal. They should also be aware of their continuing obligations to:
- Provide reasonable accommodations
- Maintain a written Section 503 AAP (if they have 50 or more employees and a contract or contracts of $50,000)
- Continue outreach and recruitment of qualified individuals with disabilities and assess the effectiveness of those efforts
As observed by the DOL itself, complaint investigations can still be brought against organizations violating Section 503. This ensures that continuing these compliance activities remains highly important.
How Affirmity Can Help
Clean data, well-documented processes, and rigorous analysis remain essential pillars of effective workforce compliance and proactive improvement. In addition to assisting with the creation of Section 503 affirmative action plans, Affirmity is on hand to assist with the following solutions:
- Workforce compliance services, including VEVRAA, EEO-1, and VETS-4212
- Workforce analysis software and services
- Compensation and pay equity analysis
- Risk assessment services covering DEI programs, AI use, and more
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About the Author
Since joining Affirmity in 2022, Mary Boley has become a trusted consultant, partnering with organizations across diverse industries to navigate workforce compliance and reporting requirements. She specializes in EEO-1, VETS-4212, California and Illinois Pay Data Reporting, Minnesota State Reporting, Affirmative Action Programs (AAPs), and Workforce Insights reports.
Known for her analytical expertise and attention to detail, Ms. Boley helps clients meet evolving federal and state compliance obligations with confidence. She also contributes to the continuous enhancement of Affirmity’s consulting services through active participation in ILG meetings and internal initiatives that support innovation and client success.