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Proposed Federal Rule Could Add Cost, Administrative Burdens

Here is a repost of a blog entry from AGC of America’s Tamika Carter about a proposed federal rule that may place significant additional cost and administrative burdens on your company:

On Dec. 9, 2011, the Office of Federal Contract Compliance Programs (OFCCP) proposed significant changes to its regulations implementing Section 503 of the Rehabilitation Act of 1973, which would increase the nondiscrimination and affirmative action obligations of direct federal contractors and their subcontractors regarding individuals with disabilities.  This regulation would not affect federally-assisted contractors.  While AGC agrees that individuals with disabilities must not be discriminated against, these changes would place significant administrative and cost burdens on federal construction contractors.

OFCCP estimates that the total cost of compliance with these requirements will be approximately $473 per establishment per year.  In an effort to determine a more accurate cost burden for construction contractors, please ask your members to respond to our online survey that will help to establish comments on behalf of the industry.   All survey responses will be kept completely confidential.  Because OFCCP has given the public only until Feb. 7, 2012 to review, analyze, and comment on its proposal, AGC will need responses to the survey no later than Wednesday, Feb. 1, 2012.

In addition, AGC chapters and members are encouraged to submit letters individually opposing the implementation of these proposed regulations, specifically asking OFCCP to exempt the construction industry from the requirements of the proposed rule through the AGC Legislative Action Center.  A sample editable letter is provided for convenience.  AGC’s request to extend the comment deadline was denied, therefore, all comments must be submitted by February 7, 2012.

Survey of cost and administrative burdens of OFCCP’s proposed disability regulations (Complete by Feb. 1, 2012)

Letter opposing OFCCP’s proposed disability regulations (Complete by Feb. 7, 2012)

For a summary of the proposed rule, click here or contact Tamika Carter at

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