Labor Department Ended Federal Disability Hiring Targets
Federal contractors are no longer required to track disability data, a shift affecting one in five American workers.
Updated on Sept. 29, 2026 in Employment
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The Department of Labor has eliminated the 7% disability hiring benchmark for federal contractors. This change, which takes effect after the policy was established in 2013, removes requirements for employers to track demographic data related to disabilities.
Why it matters
Federal officials view the mandate as conflicting with the Americans with Disabilities Act, and the agency claims the removal saves contractors more than $80 million annually. The move marks a shift in how federal employers manage their workforce recruitment and retention strategies under Section 503 of the Rehabilitation Act.
Federal contractors, who employ one in five U.S. workers, are no longer bound by the 7% disability hiring goal established in 2013. The policy change is projected to save contractors over $80 million annually in administrative and tracking expenses.
The players
Department of Labor
The federal agency responsible for overseeing workplace regulations and labor standards for American employers.
The details
Under Section 503 of the Rehabilitation Act of 1973, contractors were previously required to conduct demographic tracking and submit plans when falling below specific benchmarks. The Department of Labor has now discontinued mandatory self-identification forms for job applicants and removed the requirement for employers to outline remedial plans. Officials argue that these previous tracking measures conflicted with provisions of the Americans with Disabilities Act.
Timeline
1973: Section 503 of the Rehabilitation Act was passed.
2013: The Labor Department established the 7% disability hiring goal.
September 2026: The Department of Labor eliminated disability hiring targets.
Money Landscape
This policy change represents a major shift in the long-standing regulatory environment established by Section 503 of the Rehabilitation Act of 1973. It moves federal labor standards away from the 7% benchmark model that has influenced corporate hiring compliance since 2013.
Workers identifying as disabled may see changes in corporate recruitment programs as employers adjust their hiring processes without the pressure of federal benchmarks. Because federal contractors employ 20% of the U.S. workforce, individuals should monitor company career pages for updates to diversity and inclusion hiring policies.
The takeaway
The elimination of federal hiring targets may lead contractors to scale back existing disability recruitment initiatives. Readers should monitor their employers’ updated recruitment documentation to understand how these regulatory changes influence internal hiring policies.
Further reading
For more on how government regulations impact workplace standards, visit our Employment section.
Source note: This article includes information reported by Money Talks News.
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Should the federal government eliminate hiring targets for contractors to reduce corporate compliance costs?
