Eight years of findings, followed by a suspension
The Labor Department’s Office of Federal Contract Compliance Programs found Section 503 violations in 532 contractor audits from fiscal 2017 through 2025, according to GAO’s October 6 public release.
Since January 2025, Labor has suspended those selected-contractor audits and stopped collecting affirmative-action-program certifications through its portal. Complaint investigations continue, but they begin with an allegation rather than a proactive review.
Section 503 bars covered federal contractors from disability discrimination and requires certain contractors to take proactive steps to employ and advance qualified people with disabilities.
| Measure | Record |
|---|---|
| Federal contract spending in FY2025 | $793 billion |
| Contractor workforce described by GAO | More than 1 million workers |
| Audits finding Section 503 violations, FY2017–25 | 532 |
| GAO recommendations | 8 |
A violation count is not a national violation rate
The 532 audits were selected oversight actions; GAO did not present them as a random sample of all contractors. Dividing that number by the contractor universe would create an unsupported compliance rate.
GAO made eight recommendations, including resuming audits and certifications, conducting workforce planning and publishing guidance on accommodations, recruiting partners and best practices. Labor agreed with six and neither agreed nor disagreed with two.
The distinctive finding is the oversight sequence: hundreds of audits had identified violations before the audit program was suspended. The open question is whether complaint-only enforcement and future guidance can provide equivalent assurance; the record reviewed does not establish that they can.
Sources and further reading
GAO-26-107937: Disability Employment and Federal Contractors, public release October 6, 2026 ↗