Section 504 and regulations implementing the Act also prohibit discrimination in employment against qualified individuals with a disability. Like the ADA, a qualified individual with a disability is a person who: (1) has a physical or mental impairment which “substantially limits” one or more major life activities, (2) has a record of such impairment, or (3) is regarded as having such an impairment.

Covered Federal contractors and subcontractors are required to make reasonable accommodations to the physical or mental limitations of qualified individuals with disabilities.

Employers are also required to take all necessary actions to ensure that no one attempts to intimidate or discriminate against an individual for filing a complaint or participating in a proceeding under Section 503.

Section 503 regulations apply to State and local government entities which have contracts with the Federal government if the State or local government entity participates in work on or under the contract or subcontract. Unlike coverage of private sector employers, the government entity but not the government as a whole becomes subject to Section 503 and its regulations when it enters into the contract.

Disability discrimination complaints filed with OFCCP will be considered charges filed simultaneously under the ADA whenever the complaints also fall within the ADA's jurisdiction. OFCCP will act as EEOC's agent in processing the ADA component of the charge. OFCCP will transfer to the EEOC all disability discrimination complaints over which it does not, but EEOC may, have jurisdiction. OFCCP will investigate and process all of the Section 503/ADA complaints not transferred to EEOC. If OFCCP's investigation reveals a violation, the agency will attempt to conciliate with the contractor, often entering into a conciliation agreement. A conciliation agreement may include a job offer, back pay, reinstatement, promotion or reasonable accommodation.

If the investigation results in a finding of no violation, OFCCP will issue both a finding of no violation and a right-to-sue letter under the ADA, and will close the complaint. Complainants may request a right-to-sue letter earlier in the process.

The following types of contracts are exempt from Section 503:

• Transactions of $10,000 and under;
• Contracts and subcontracts for indefinite quantities, unless the purchaser has reason to believe that the amount to be ordered in any one year will be over $10,000;
• Contracts for work that is performed outside the United States by employees who were not recruited in the U.S.;
• Contracts exempt for national interest or security reasons; and
• Contracts with State or local governments unless the governmental entity participates in work on or under the contract.

Individuals who bring suit under Section 504 may be entitled to monetary damages awards, including back pay. Attorneys fees may also be awarded to a prevailing planitiff.