DISTRICT COURT JUDGE RULES IN FAVOR OF OFCCP’S NEW SECTION 503 RULE

A ruling was issued today by District Judge Emmet Sullivan in the case of Associated Builders Contractors, Inc. v. Patricia A. Shiu in the United States District Court for the District of Columbia (the ruling may be viewed here). Associated Builders and Contractors (ABC) is a trade organization that represents the construction industry, including many federal contractors. The organization brought suit against Shiu, Director of OFCCP, to challenge the revisions to Section 503 of the Rehabilitation Act. The new rules take effect on Monday, March 24, 2014.

 

The Plaintiff’s suit claimed that OFCCP:

  1. Exceeded the agency’s statutory authority under Section 503, including imposing a data collection requirement that violates the Americans with Disabilities Act
  2. Failed to provide a rational explanation for the changes in the policy
  3. Failed to comply with the Regulatory Flexibility Act and Small Business Act

 

In his ruling, Judge Sullivan denied the ABC’s motion to enjoin portions of Section 503 and granted OFCCP’s cross motion for summary judgment. As a result, the new regulations will take effect on Monday as initially scheduled. Stay tuned for more information.

By Dave Sharrer, M.S., Associate Consultant, DCI Consulting Group

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