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Cream background with the text "Section 503, Rehabilitation Act". To the right is a wooden gavel on top of two books.Cream background with the text "Section 503, Rehabilitation Act". To the right is a wooden gavel on top of two books.
Cream background with the text "Section 503, Rehabilitation Act". To the right is a wooden gavel on top of two books.

What is Section 503 of the Rehabilitation Act?

TLDR; Section 503 prohibits discrimination against employees with disabilities.

Team Disclo
March 26, 2024

Section 503 is another law that protects employment rights of employees and applicants with disabilities. Section 503 is a bit more complicated and a bit more specific.

The OFCCP enforces Section 503, which prohibits employment discrimination based on disability and also requires affirmative action in the hiring, placement and advancement of people with disabilities by federal contractors or subcontractors. 

Section 503 applies to: 

✅ Federal contractors with contracts in excess of $10,000

✅ Contractors that have a contract or sub-contract of $50,000 or more and 50 or more employees must have an actual affirmative action program or plan. 

These regulations also include a 7% utilization goal, which is a metric of success for federal contractors to track their progress in recruiting and hiring people with disabilities. Failing to meet the 7% goal is not a violation of the regulations and won’t lead to a fine, penalty or sanction.

Want to know more about Section 503? Here are some of our favorite resources:

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