GAO issues report on DOL oversight of Section 503

On October 6, the Government Accountability Office (GAO) issued a report on the DOL’s oversight of Section 503. The report—Disability Employment: DOL Should Enhance Monitoring and Guidance for Federal Contractors (GAO26-107937)—calls on the DOL to strengthen its oversight of federal contractors’ compliance with Section 503 and provide more guidance to help them meet their obligations. The report cites the reduction in DOL oversight beginning in January 2025 including suspension of its compliance audits. 

Background 

Section 503 applies to federal contractors and subcontractors that hold a federal contract or contracts in excess of $20,000 and provides that they may not discriminate against applicants or employees based on disability. If the contractors have 50 or more employees and contracts of $50,000 or more, they have an obligation to take affirmative action to employ and advance in employment qualified individuals with disabilities. The Office of Federal Contract Compliance Programs (OFCCP) has been responsible for enforcement of Section 503. 

Report’s findings 

The GAO interviewed representatives of contractors, consultants who assist contractors with Section 503 compliance, academic researchers, and representatives of disability organizations as well as conducting anonymous surveys of representatives of contractors to collect additional perspectives during the period from November 2024 to September 2026.