Federal officials are moving to dismantle a key policy aimed at increasing employment opportunities for disabled people. The U.S. Department of Labor has proposed eliminating a 2013 rule that requires most federal contractors to strive for having at least seven percent of disabled employees in each job group within their workforce.
Implemented during the Obama administration, this rule was part of Section 503 of the Rehabilitation Act and was designed to promote accountability and inclusion among federal contractors. Under the rule, contractors must take concrete actions such as proactive outreach, inclusive recruitment practices, employee training, accessible application systems, and consistent record keeping.
Those who fail to meet the seven percent benchmark must show documented evidence of ongoing efforts toward reaching the goal. If they cannot, they risk losing their government contracts.
The Department of Labor now claims that although the rule prohibits quotas, contractors may feel pressured to treat the goal as a de facto quota. The agency also intends to eliminate a provision requiring contractors to invite job applicants to voluntarily self-identify as disabled. It argues that this practice could conflict with the Americans with Disabilities Act, which prohibits employers from asking disability-related questions before extending a job offer.
According to the proposed rule, the current requirements for self-identification and utilization analysis are not only inconsistent with the ADA but are also burdensome for employers and not explicitly required by law.
Disability rights advocates are expressing concern over the proposed rollback. Maria Town, president and CEO of the American Association of People with Disabilities, strongly criticized the move. She emphasized that disabled people remain significantly underrepresented in the workforce despite being capable and willing to work.
As of 2024, the employment rate for disabled people was just over 23 percent compared to nearly 65 percent for nondisabled people, according to data from the U.S. Bureau of Labor Statistics. That gap represents millions of people who face persistent barriers to employment, including discrimination, lack of accommodations, and limited access to opportunity.
Federal contractors collectively employ nearly four million workers, making them one of the largest employment sectors in the United States. For disabled people, access to jobs through federal contractors and apprenticeships can provide vital pathways to financial independence, career growth, and inclusion in society. The seven percent goal, though nonbinding, was an important aspirational benchmark designed to encourage contractors to be intentional in hiring and retaining disabled workers.
Town described the rollback as not only harmful but also deeply ironic. She said it is especially insulting that the government would justify this decision by referencing the very law the rule was meant to strengthen. Instead of improving ADA enforcement and expanding opportunities, the proposal threatens to reverse progress at a time when inclusion and equity are more important than ever.
The proposed rule is open for public comment until tomorrow. Advocates are urging members of the public, especially those in the disability community, to voice their concerns. Disabled people need to fight for continued protections that support equal access to employment.
Sources:
Heasley, Shaun. “Labor Department Seeks to Roll Back Disability Hiring Mandate.” Disability Scoop, Disability Scoop, 29 Aug. 2025, http://www.disabilityscoop.com/2025/08/29/labor-department-seeks-to-roll-back-disability-hiring-mandate/31602/.
Métraux, Julia. “Labor Department Moves to End Disability Hiring Goal for Federal Contractors.” Mother Jones, Mother Jones, 17 July 2025, http://www.motherjones.com/politics/2025/07/labor-department-disability-hiring-federal-rule/.
“Persons with a Disability: Labor Force Characteristics News Release – 2024 .” U.S. Bureau of Labor Statistics, U.S. Bureau of Labor Statistics, 25 Feb. 2025, http://www.bls.gov/news.release/disabl.htm.