Federal Contractors Should Prepare for New Hiring Burdens to Take Effect in Early 2014

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On August 27, 2013, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) announced Final Rules establishing new regulations under Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act. Under the new regulations, likely to go into effect by March 2014, federal contractors and subcontractors will be required to adopt tangible hiring goals for individuals with disabilities and devise new hiring benchmarks for qualified military veterans.

The new regulations require federal contractors to establish a nationwide 7 percent utilization goal for individuals with disabilities across each job group within their workforces. Federal contractors and subcontractors with 100 or fewer employees must apply the utilization goal across their entire workforces.

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