Department of Labor Proposes Disability-Friendly Amendment

The Office of Federal Contract Compliance Programs (OFCCP), an arm of the Department of Labor, recently issued public notice it intends to modify regulations relating to Section 503 of the Rehabilitation Act of 1973. Section 503 provides equal opportunity for qualified disabled workers seeking employment with federal contractors and subcontractors.

Reasons for Changes:
Recent labor force participation and unemployment data show large disparities between working-age people with functional disabilities and those without. The proposed amendments take a strong step towards establishing up-to-date compliance guidance and accountability. Further, the changes incorporate 2009 updates to the American Disabilities Act. OFCCP Director Patricia A. Shiu proclaimed, “For nearly 40 years, the rules have said that contractors simply need to make a ‘good faith’ effort to recruit and hire people with disabilities. Clearly that’s not working.”

The Changes:
Utilization Goal. Most notably, the proposal establishes a seven percent (7%) national hiring goal for federal contractors and subcontractors. The goal would not be a quota or a hiring ceiling, but would set a measuring bar for individual contractors.

Data Collection and Recordkeeping:
Also, the new rules would require contractors to allow applicants to self-identify as an individual with a disability at the pre-offer and post-offer stages of hiring and in an annual anonymous survey to employees. In tandem with this data collection requirement, the new regulations would require contractors keep additional records regarding individuals with disabilities.

Compliance:
To comply with the new regulations, contractors must develop and implement procedures for accommodation requests. There will be mandatory outreach and job listing requirements in addition to a required documented annual self-review of personnel processes. Further, contractors must allow the OFCCP to review compliance records on- or off-site anytime and will undergo a new pre-award compliance check.

Impact of Changes:
Federal contractors and subcontract should be aware of more stringent compliance requirements for hiring disabled individuals on the horizon. Data collection and recordkeeping requirements may prove burdensome, particularly for smaller outfits.

Authored by attorney Timothy Boykin, these articles are meant to bring awareness to these topics and are not intended to be used as legal advice.
For more information, contact Mike at 757-446-8626 or Bill Franczek at 757-446-8600.
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