A utilization goal was a benchmark under the former Section 503 regulations used by covered federal contractors to evaluate the representation of individuals with disabilities in their workforce. The former regulations established a 7% utilization goal for qualified individuals with disabilities and required covered contractors with affirmative action programs to conduct an annual utilization analysis.
Effective September 21, 2026, the U.S. Department of Labor (DOL) rescinded the Section 503 utilization goal and related disability data analysis requirements. As a result, covered federal contractors and subcontractors are no longer required to measure the representation of individuals with disabilities against the former 7% goal.
The Former 7% Utilization Goal
The 7% utilization goal was established under the Section 503 regulations in 2013. Contractors generally applied the goal to each job group in their workforce, although contractors with 100 or fewer employees could use their entire workforce rather than individual job groups.
The goal was not a quota or ceiling on hiring. Rather, it was intended as a tool for evaluating the representation of individuals with disabilities and identifying potential impediments to equal employment opportunity.
Under the former requirements, contractors that fell below the 7% goal were required to assess their employment practices and take action-oriented steps when appropriate to address identified barriers or impediments.
What Changed in 2026?
The DOL’s 2026 Final Rule removed the regulations establishing the Section 503 utilization goal and annual disability data analysis. The rule also discontinued the regulatory requirement for contractors to invite applicants and employees to self-identify as individuals with disabilities. The associated disability self-identification form, commonly known as CC-305, was discontinued effective September 21, 2026.
The elimination of the utilization goal does not eliminate Section 503 altogether. Covered federal contractors remain subject to Section 503’s nondiscrimination and affirmative action requirements, including applicable requirements for contractors with 50 or more employees and a federal contract or subcontract of $50,000 or more.
Contractors should therefore focus on the current Section 503 requirements rather than continuing to treat the former 7% utilization goal as a compliance benchmark.
Note: The 7% Section 503 utilization goal is no longer required as of September 21, 2026. It remains relevant as a historical reference because it was a significant component of the former Section 503 affirmative action framework, but contractors should not represent it as a current federal requirement.
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