Disability Employment: DOL Should Enhance Monitoring and Guidance for Federal Contractors

The federal government spent $793 billion in 2025 on contracts with federal contractors, which employ over a million American workers. Section 503 of the Rehabilitation Act of 1973 requires certain contractors to take steps to employ people with disabilities.

The Department of Labor is tasked with overseeing how contractors implement this law in their workplaces. But since 2025, it has suspended much of its oversight. Contractors could also benefit from additional guidance from DOL.

We recommended that DOL resume oversight activities and provide contractors with additional guidance, such as a list of best practices for Section 503 compliance.

Section 503 of the Rehabilitation Act of 1973 (Section 503) requires certain federal contractors to take proactive steps to employ people with disabilities. The Office of Federal Contract Compliance Programs (OFCCP) within the Department of Labor (DOL) oversees contractors’ compliance with Section 503. Since January 2025, DOL has reduced its oversight activities. For example, DOL has suspended audits of selected contractors, which were a key tool for monitoring compliance. From fiscal years 2017 through 2025, 532 audits found Section 503 violations. Without resuming audits, DOL has less assurance that contractors are supporting employment of people with disabilities. Further, DOL has reduced OFCCP’s workforce in response to changes in its activities (see fig.). However, these changes were not informed by strategic workforce planning consistent with key principles for such efforts. DOL has made changes to Section 503 regulations that could further impact OFCCP’s activities. Engaging in strategic workforce planning would help DOL ensure that OFCCP’s workforce composition meets its needs.

Office of Federal Contract Compliance Programs Workforce, FY 2017–2026

Federal contractors face a range of challenges complying with Section 503. Selected stakeholders identified challenges in three key areas: