Reminder: AAPs for Individuals with Disabilities, Protected Veterans

Disclaimer: Effective 9/21/2026, the regulations implementing Section 503 of the Rehabilitation Act have changed, including that use of the Form CC-305 previously required for collection of voluntary disability status data from employees and applicants must be discontinued. Any disability inquiries must comply with the Americans with Disabilities Act and applicable state or local law.

Much of the focus over the last 10 months has been on the Trump Administration’s decision to end the requirement to prepare Affirmative Action Plans under Executive Order 11246. This change has created some confusion, with many members of the public believing all affirmative action is dead. But this stance is incorrect. It is important for federal contractors to remember that Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) are still in effect. And federal contractors must continue to develop affirmative action programs for Individuals with Disabilities and Protected Veterans.

While Section 503 remains in effect, federal contractors should be aware that the Office of Federal Contract Compliance Programs (OFCCP) recently finalized significant changes to the regulations. Effective September 21, 2026, contractors are no longer required to invite applicants or employees to self-identify as individuals with disabilities, maintain disability utilization analyses, or use Form CC-305. The longstanding 7% utilization goal for individuals with disabilities was also eliminated. However, contractors that meet the applicable coverage thresholds must still maintain affirmative action programs for individuals with disabilities and continue to comply with Section 503's core requirements, including nondiscrimination, reasonable accommodation, accessibility, and outreach and recruitment efforts.

Contractors should review their existing compliance programs to ensure they reflect the updated requirements. While some former data collection and analysis obligations have been removed, Section 503 compliance remains an important responsibility for covered federal contractors, and OFCCP continues to have authority to investigate complaints and enforce the law's protections for qualified individuals with disabilities

Additionally, even though contractors are not currently certifying compliance with the regulations in OFCCP’s contractor verification portal, federal contracts include FAR clauses requiring compliance with the regulations. The relevant FAR clauses that incorporate the requirements of Section 503 and VEVRAA into federal contracts include: 

• FAR 52.222-36, Affirmative Action for Workers with Disabilities: This clause mandates non-discrimination and affirmative action for qualified individuals with disabilities, in accordance with Section 503 of the Rehabilitation Act of 1973.

• FAR 52.222-35, Equal Opportunity for Veterans: This clause mandates non-discrimination and affirmative action for protected veterans, in accordance with VEVRAA.

• FAR 52.222-37, Employment Reports on Veterans: This clause requires covered contractors to track and annually report on the number of protected veterans in their workforce using the VETS-4212 report. 

Human Resources or Compliance may not even be aware of how procurement, or other contracting departments, are registering and responding to contract certification requirements in SAM.gov (the System for Award Management). By signing federal contracts and registering in the SAM.GOV portal, contractors are certifying they are currently in compliance with the above FAR clauses. False certifications can have hefty consequences, including potential False Claims exposure, criminal penalties, and debarment or loss of government contracts.

At the SHRM Blueprint conference on October 27th, immediate past OFCCP Director, Catherine Eschbach, speaking from her personal views, discussed the current and future focus of OFCCP. She noted that the first part of this year has been focused on unwinding EO 11246 from VEVRAA and Section 503 but once that work was finished, OFCCP would turn its focus to enforcing compliance with VEVRAA and Section 503. OFCCP is currently still taking complaints and conducting investigations under VEVRAA and Section 503. Eschbach noted that previously, EO 11246 enforcement made up about 90% of the OFCCP’s work but now, all of their focus will be on VEVRAA and Section 503 going forward. Her recommendation to contractors was to put a renewed focus on compliance efforts under Section 503 and VEVRAA.

With the start of a new year upon us, contractors should take a critical look to ensure these two compliance requirements are completed so the organization is positioned well when OFCCP turns its full attention to enforcement of protections for individuals with disabilities and protected veterans. This includes maintaining current affirmative action programs, listing most jobs with the state employment service delivery system, conducting and evaluating outreach efforts for individuals with disabilities and protected veterans, reviewing accommodation and accessibility practices, and filing an annual VETS-4212 report with the Department of Labor. It’s important for HR to make sure their annual compliance checklist still includes these requirements, even as other requirements change.