Labor Department Eliminated Disability Hiring Benchmarks

Federal contractors are no longer required to track disability demographic data or meet specific hiring targets.

Updated on Sept. 29, 2026 in Employment

Bold flat-color editorial illustration of a heavy brass stamp resting on a blank page, representing regulatory policy change. — The Labor Department has eliminated the 7% disability hiring benchmark for federal contractors, removing mandatory data tracking and compliance reporting requirements. AI Illustration. Upload story photo >

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Should the federal government eliminate hiring targets for contractors to reduce corporate compliance costs?

The Department of Labor has officially eliminated the 7% workforce benchmark for disability hiring, removing a mandate that required federal contractors to track disability demographic data. This policy shift applies to employers who account for approximately one in five American workers.

Why it matters

Federal officials argued that mandatory benchmarks conflicted with the Americans with Disabilities Act and functioned as an unlawful quota. The change is projected to save federal contractors more than $80 million annually by removing administrative requirements for data tracking and compliance plans.

The Department of Labor expects this rule change to save federal contractors more than $80 million annually. The policy eliminates the 7% disability hiring benchmark that has been in place since 2013 for organizations employing one in five American workers.

The players

Department of Labor

The federal executive department responsible for occupational safety, wage and hour standards, and labor law enforcement.

The details

The regulatory update removes the mandatory self-identification forms previously required of job applicants and discontinues the requirement for contractors to submit formal plans when they fall short of workforce benchmarks. While contractors remain subject to Section 503 of the Rehabilitation Act of 1973, which requires affirmative efforts to recruit disabled individuals, the removal of quantitative targets and data collection requirements significantly reduces compliance oversight. Companies may now scale back specific internal programs previously built to meet the 7% threshold.

The 1973 passage of Section 503 of the Rehabilitation Act established the initial legal framework.
The Labor Department established the 7% disability hiring goal in 2013.
The Department of Labor eliminated disability hiring targets on September 29, 2026.

Market Landscape

This policy shift marks a significant departure from the quota-based approach to disability employment introduced by the Labor Department in 2013. The move aligns with federal arguments that such targets conflict with the Americans with Disabilities Act.

Contractors should audit their current recruitment software and reporting workflows to remove mandatory disability self-identification forms. Businesses must still maintain compliance with Section 503 of the Rehabilitation Act regarding affirmative recruitment efforts despite the loss of specific benchmarks.

The takeaway

The end of federal disability hiring targets shifts the compliance focus from quantitative tracking to general recruitment outcomes. Operators should monitor their internal disability hiring trends to maintain inclusive practices even as the regulatory mandate for demographic data collection disappears.