District Court Rejects Challenge To Section 503 Final Rule

On Friday, March 21, 2014, Federal District Judge Emmet Sullivan ruled in favor of the Office of Federal Contractor Compliance Programs' ("OFCCP") recent rule implementing Section 503 of the Rehabilitation Act, denying a challenge by the Associated Builders and Contractors trade organization ("ABC").  As a result, OFCCP's Rule—"Affirmative Action and Nondiscrimination Obligations of Contractors and Subcontractors Regarding Individuals with Disabilities ("Final Rule")—will go into effect today unchanged.

ABC filed suit in federal district court in 2013 seeking to invalidate the Final Rule.  ABC argued that portions of the Rule (1) were contrary to Section 503; (2) were arbitrary and capricious in violation of the Administrative Procedure Act; and (3) violated the Regulatory Flexibility Act, 5 U.S.C. §601.  The Court rejected ABC's arguments and granted OFCCP's cross-motion for summary judgment.