Federal Contractors, are you ready?

How does Section 503 affect me? What is Section 503?  What happened with the final rule on August 27th, 2013?  There are a number of questions surrounding Section 503.  I’d like to answer some of them for you.

So who cares? Section 503 specifically affects Companies with government contracts of $10,000 or more.  This will also affect those subcontractors who work with these companies.  In addition, individuals with disabilities, their families, and their support staff will benefit from the Final Rule.

So what does it say?  Did you know that Section 503 is a part of the Rehabilitation Act of 1973?  In August of 2013, Section 503 was not written or added, it was updated and a “Final Rule” was passed.  In summary, the Final Rule states, “Section 503 of the Rehabilitation Act of 1973 requires federal contractors and subcontractors to employ and advance in employment qualified individuals with disabilities and prohibits discrimination against such individuals.”

What has changed?  The final rule has implemented a new set of regulations.  The most important changes are that Federal Contractors and Subcontractors must meet a 7% utilization goal.  That means that these employers must hire and retain 7% of their employees as self-identified individuals with disabilities (IWD).  They must collect data on the number of applicants with disabilities that have applied, were hired, and promoted.  The Office of Federal Contract Compliance Programs (OFCCP) will enforce these rules, and can access these records at any time.

I’m an individual with disabilities, what is important to me?  What you need to know is that these contractors will be looking to hire individuals with disabilities (IWD) to fill their 7% utilization goals.  They will start to implement new programs to attract IWDs.  If you need a job (or a new job) it would be a good idea to know who these employers are, and how to apply to them.

I am a Federal Contractor/ Subcontractor what is important to me?  If you are not aware of these changes you need to contact the OFCCP.  If you are aware, but have not reached your 7% utilization goals, please contact me.  We are able to help you meet those regulations and can support you through the process of becoming compliant.

If anyone has more questions or comments, feel free to email me at heather.riley@nebaworks.com and have a wonderful day!

Heather Riley

Project Coordinator

New England Business Associates