While some compliance requirements for federal contractors have changed, Section 503 of the Rehabilitation Act of 1973 remains in place and creates compliance obligations for federal contractors related to individuals with disabilities (IWD). This includes a requirement to complete a non-discrimination plan for IWD, which is comprised of data analyses, comparison of the contractor’s workforce against the national IWD utilization goal, and other actions like evaluation of outreach efforts and review of personnel processes.
Under Section 503 of the Rehabilitation Act of 1973, a business with a federal contract of $15,000 or more is required to take affirmative action to employ and advance in employment qualified individuals with disabilities. Government contractors who have 50 or more employees and a federal contract of $50,000 or more are required to comply with the non-discrimination plan obligations found in the regulations implementing Section 503 of the Rehabilitation Act of 1973.
Berkshire’s experienced consultants will work with you every step of the way to complete your IWD non-discrimination plan. We will review the required data elements with you, and once your organization provides the necessary data, we will complete a thorough data-scrubbing process and resolve all data errors and inconsistencies with your assistance. We will review your job titles to ensure proper classification in EEO-1 categories, and work with you to customize template narratives to accurately reflect the efforts your company is making in this area. Once the plan is completed, your consultant will walk through the results and recommended action items on a review call to ensure your team understands the results of the data analyses, the required compliance elements, and recommend next steps.
Reports and narratives will be delivered through Berkshire’s proprietary service delivery portal, the Berkshire Client Portal. This portal empowers you to easily view and interpret your results, securely exchange files with your dedicated consultant, and seamlessly download and share reports based on each AAP.
Yes. The revocation of Executive Order 11246 eliminated non-discrimination obligations tied to race and sex for federal contractors and subcontractors, but Section 503 of the Rehabilitation Act of 1973 remains fully in force. Section 503 is a separate statutory authority, not an executive order, and only Congress can change it. Section 503 compliance obligations covering individuals with disabilities, continue without interruption, including the requirement to maintain a Section 503 non-discrimination plan, conduct utilization analyses, and engage in good-faith outreach.
A complete Section 503 Non-Discrimination Plan is a combination of a written narrative with required policy sections, a data collection analysis summarizing applicant and hiring activity for the reporting period, and a utilization analysis against OFCCP’s 7% utilization goal. Documentation of good-faith efforts is what OFCCP reviews most closely. A plan that exists only on paper, without supporting activity records, will not hold up in an audit.
Section 503 requires employers with federal contracts or subcontracts that exceed $20,000, including construction contractors, to ensure non-discrimination in employment because of disability and take non-discrimination to hire, retain, and promote Individuals with Disabilities. Under the regulations implementing Section 503, covered contractors holding a contract of $50,000 or more must prepare a written annual non-discrimination plan for individuals with disabilities. The ADA, by contrast, applies broadly to employers with 15 or more employees, regardless of federal contract status and focuses on non-discrimination and reasonable accommodation. Section 503 imposes additional affirmative obligations on top of ADA requirements, including data analysis, outreach, and documented good-faith efforts.
A typical Section 503 compliance engagement lasts 4 to 8 6 weeks, depending on data readiness, organizational complexity, and the number of establishments. Berkshire's consultants begin with a kickoff call to review required data elements, followed by data validation to resolve errors and inconsistencies. We then review job titles for proper EEO-1 category classification, complete the utilization analysis against the 7% goal, and customize template narratives to reflect your organization's actual outreach and recruitment activity and methodology to review personnel processes and physical and mental qualifications. Ideally, this is a collaborative process by which your Berkshire consultant will ask you some questions along the way to ensure agreement. A review meeting walks your team through results and recommended action items. All plan documents and reports are available through the Berkshire Client Portal where you also have access to a variety of resources to ensure compliance with Section 503 requirements.
Federal contractors and subcontractors should not interpret the revocation of EO 11246 as a broader reduction in compliance exposure. Proactive next steps include:
To discuss how Berkshire can support your Section 503 compliance program, complete the contact form on this page or call 800-882-8904.
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Berkshire Associates is a human resources compliance and workforce analytics consulting firm, specializing in federal and state EEO compliance and reporting, pay equity, test validation/development, human resource development and analytics, and implementation of artificial intelligence best practices. For more than 40 years, our consultants have helped employers turn workforce data into actionable decisions.
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