Rehabilitation Act of 1973
10 July 2006Rehabilitation Act of 1973, 29 U.S.C. §§701-795n
Coverage and Prohibition: The mandate of the Act is divided in two parts. The first part, commonly referred to as section 503, covers private employers that are government contractors. The second part, section 504, applies to programs and activities that receive federal financial assistance. For employers holding government contracts and subcontracts in excess of $10,000, section 503 of the Act prohibits discrimination against disabled individuals. If the employer’s contract is $50,000 or greater and the employer has 50 or more employees, the employer is required to develop a written affirmative action program for the employment of the disabled. Section 504, on the other hand, only prohibits discrimination against the disabled and does not require an affirmative action plan. Both sections require that the covered employer make a reasonable accommodation for the worker’s handicap. Note that the Americans with Disabilities Act and a great many state fair employment practice laws also prohibit discrimination against the disabled.
Enforcement: The Office of Federal Contract Compliance Programs (“OFCCP”) of the Department of Labor administers section 503, and the requirements of section 504 are enforced by the federal agency granting the financial assistance. In both cases, enforcement actions may be initiated by the filing of an individual complaint with the appropriate agency or by periodic compliance reviews. There is no private right of action under section 503. An aggrieved individual, however, may sue under section 504.
Remedies: Agencies enforcing either section may withhold progress payments from noncomplying employers. Alternatively, the employer’s contract may be terminated, or the employer may be debarred from competing for future contracts. The OFCCP also may sue to recover back pay for victims of discrimination prohibited by the Act. In addition, under the Civil Rights Act of 1991 (see below), complaints of intentional discrimination under Section 501 of the Rehabilitation Act may include claims for compensatory or punitive damages subject to the award limitations set forth in the Civil Rights Act. If such damages are sought, either party may demand a jury trial.
Related Regulations:
OFCCP: Obligations of Contractors and Subcontractors, 41 C.F.R. Part 60-1.
OFCCP: Affirmative Action Programs, 41 C.F.R. Part 60-2.
OFCCP: Affirmative Action and Nondiscrimination Obligations of Contractors and Subcontractors for Individuals with Disabilities, 41 C.F.R. Part 60-741.
Department of Health and Human Services: Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving Federal Financial Assistance, 45 C.F.R. Part 84.
Department of Transportation: Nondiscrimination on the Basis of Disability in Programs and Activities Receiving Federal Financial Assistance, 49 C.F.R. Part 27.
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