GAO urges DOL to resume audits of federal contractors for disability hiring

The Department of Labor must restart Section 503 compliance audits and add guidance for contractors, affecting firms with $793 billion in federal contracts in 2025.

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The Government Accountability Office reported that the Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) has suspended most oversight of Section 503 of the Rehabilitation Act since January 2025. Audits of selected contractors, a primary monitoring tool, were halted, and from fiscal years 2017 through 2025 the agency completed 532 audits that identified violations.

GAO issued eight recommendations, including resuming collection of AAP certifications, restarting Section 503 audits, analyzing complaint-closing trends, conducting strategic workforce planning for OFCCP, and adding website resources on reasonable accommodations, recruitment partners, outreach assessment, and best-practice lists. All eight recommendations remain open, with the Secretary of Labor having agreed with six and neither agreed nor disagreed with two.

The report notes that federal contracts accounted for about $793 billion in 2025 and support over 1 million U.S. workers. Contractors reported challenges in recruiting, retaining, and advancing employees with disabilities, and they seek clearer guidance on accommodations and compliance practices.

Stakeholders and GAO argue that without resumed audits and enhanced guidance, DOL lacks assurance that contractors are meeting their disability-employment obligations, potentially undermining the law's intent to prevent discrimination and promote proactive hiring of people with disabilities.

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