FAR 22.1401—Policy.
Plain-English Summary
FAR 22.1401 states the basic policy for federal contracts and subcontracts covered by the Rehabilitation Act requirements implemented through the FAR. It requires contractors and subcontractors to take affirmative action to employ and advance qualified individuals with disabilities, to avoid discrimination against qualified individuals based on physical or mental disability, to conduct outreach and positive recruitment designed to attract qualified individuals with disabilities, and to compare their workforce utilization of individuals with disabilities against the applicable annual utilization goal set by the Secretary of Labor. In practice, this section is the policy foundation for contractor disability affirmative action obligations: it is not just a nondiscrimination rule, but an active recruitment, advancement, and self-assessment requirement. It applies when a contract or subcontract is subject to the Act, so contractors must know whether the clause and coverage apply to their awards and flow the requirements down as needed. The section matters because it drives how contractors build hiring practices, recruitment strategies, workforce analytics, and compliance documentation for disability inclusion. It also signals that compliance is measured not only by avoiding discrimination, but by taking proactive steps and monitoring results against a government-established utilization benchmark.
Key Rules
Affirmative action required
Covered contractors and subcontractors must take affirmative action to employ and advance qualified individuals with disabilities. This means they must do more than refrain from discrimination; they must actively support hiring, retention, promotion, and career progression.
No disability discrimination
Qualified individuals with disabilities must be treated without discrimination based on physical or mental disability. Employment decisions and workplace treatment must be based on qualifications and job-related factors, not disability status.
Outreach and recruitment
Contractors must undertake appropriate outreach and positive recruitment activities reasonably designed to effectively recruit qualified individuals with disabilities. The focus is on proactive, targeted efforts that can reasonably be expected to expand applicant pools.
Annual utilization comparison
Contractors must compare the utilization of individuals with disabilities in their workforces to the applicable utilization goal on an annual basis. This requires periodic measurement and review, not a one-time compliance check.
Coverage depends on the Act
These obligations apply to contractors and subcontractors when entering into contracts and subcontracts subject to the Act. Coverage is therefore tied to the contract’s legal applicability and any required flowdown obligations.
Responsibilities
Contractors
Implement affirmative action for qualified individuals with disabilities, avoid discrimination, conduct effective outreach and positive recruitment, and annually compare workforce utilization to the applicable goal. Contractors should also maintain records and internal processes to support compliance.
Subcontractors
Meet the same affirmative action, nondiscrimination, outreach, recruitment, and annual utilization review obligations when their subcontracts are subject to the Act. They must ensure their employment practices align with the required standards.
Contracting Officers
Ensure the contract includes the applicable requirements when coverage exists and verify that contractors understand the disability affirmative action obligations. They should also monitor compliance issues as part of contract administration when appropriate.
Agency/Department of Labor framework
Establish and maintain the utilization goal and implementing regulations that define how contractors measure compliance. This framework provides the benchmark and procedural rules contractors must follow.
Practical Implications
This section requires active compliance management, not passive nondiscrimination. Contractors should have written procedures for outreach, hiring, advancement, and annual workforce review.
A common pitfall is treating disability compliance as a paperwork exercise. The rule expects real recruitment efforts and measurable comparison against the utilization goal.
Contractors should document outreach sources, applicant flow, hiring decisions, promotions, and annual utilization analyses so they can show what they did and why.
Workforce comparisons should be done consistently and on schedule. Missing the annual review can leave a contractor unable to identify shortfalls or adjust practices in time.
Because the rule applies to both contractors and subcontractors subject to the Act, prime contractors should pay attention to flowdown and subcontract coverage to avoid gaps in compliance.
Official Regulatory Text
Contractors and subcontractors, when entering into contracts and subcontracts subject to the Act, are required to- (a) Take affirmative action to employ, and advance in employment, qualified individuals with disabilities, and to otherwise treat qualified individuals without discrimination based on their physical or mental disability; (b) Undertake appropriate outreach and positive recruitment activities that are reasonably designed to effectively recruit qualified individuals with disabilities; and (c) Compare the utilization of individuals with disabilities in their workforces to the utilization goal, as prescribed in the regulations of the Secretary of Labor, on an annual basis.