The OFCCP has issued a trio of final rules, heralding major changes to Section 503 implementation, as well as small-scale adjustments to VEVRAA, and some EO 11246-related housekeeping. In this compliance alert, Affirmity Consultant Mary Boley reports on the contents of these new rules and explores what they mean for federal contractors and employers more widely.
Summary
On August 21, 2026, the OFCCP published three final rules:
- Modifications to the Regulations Implementing Section 503 of the Rehabilitation Act of 1973, as Amended
- Modifications to the Regulations Implementing the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as Amended
- Rescission of Executive Order 11246 Implementing Regulations
These new rules impose the following changes:
1) Significant Section 503 Modifications
The OFCCP has chosen to action several modifications to the Section 503 implementing regulations from its controversial July 2025 proposed rule. These include:
- Removal of the requirement to invite applicants or employees to self-identify as individuals with disabilities using form CC-305
- Removal of the 7% disability utilization goal and required utilization analysis under 41 CFR 60-741.45
- Removal of the associated applicant/hire data-collection calculations requirements under 41 CFR 60-741.44(k)
The basic Section 503 coverage threshold has also been amended to $20,000 in government contracts or subcontracts in line with the OFCCP’s bulletin from late 2025.
The OFCCP is explicit that contractors will no longer be required to collect disability data or run these calculations, though it does still suggest contractors aren’t prohibited “from exercising their own legal and business judgment about making disability inquiries consistent with the ADA and its implementing regulations.”
2) Minor Modifications to VEVRAA
The changes to the VEVRAA implementing regulations are largely of a more routine nature. The final rule:
- Removes outdated references to EO 11246
- Moves administrative enforcement procedures directly into the VEVRAA regulations (as the act previously referenced those within EO 11246)
- Raises the federal contract coverage threshold from $150,000 to $200,000, once again in line with the late 2025 OFCCP bulletin
The hiring benchmark and core AAP obligations remain intact, and the OFCCP states that these changes create no new information or recordkeeping requirements.
3) Rescission of EO 11246 Implementing Regulations
The last of the rules is arguably the least important, though it is symbolically a final closing of the book on the EO 11246-era. The text of the final rule provides a lengthy rationale for the formal rescission of EO 11246’s implementation regulations, and then a full list of passages to remove and revise. This rule comes into effect on October 26, 2026.
Who Is Impacted and What Actions Are Required?
While these rules present a significant shift in Section 503-related federal contractor requirements, key non-discrimination and affirmative action obligations for individuals with disabilities remain, including your outreach and recruitment requirements. Contractors must still document and evaluate the effectiveness of these efforts annually. The OFCCP argues that it is giving more flexibility in how “effectiveness” gets measured.
The new rules do, however, mean that there is no longer a statutory or regulatory basis to solicit disability status from applicants before making an employment offer. We therefore advise contractors to seek legal counsel before continuing pre-offer data collection. Post-offer inquiries are unaffected, but must comply with ADA and EEOC implementing regulations.
Federal contractors’ VEVRAA obligations remain identical to those in place before the final rule, as the newly formalized coverage threshold has already been in effect since October 2025.
To reiterate our broader perspective on employer priorities in the post-11246 era, Affirmity believes that organizations should focus on ‘workforce data readiness.’ It is becoming increasingly important to design processes, create documentation, and record data that lets you understand, monitor, and defend your workforce decisions without relying on federal reporting.
How Affirmity Can Help
Clean data, well-documented processes, and rigorous analysis remain essential pillars of effective workforce compliance and proactive improvement. 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
Protect your organization from shifting agency priorities: Contact our team of experts today.
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.