The Obama Labor Department has just finalized rules that
will effectively require businesses that get federal contracts to adopt a 7 percent hiring quota for the disabled. Much of
the American workforce is employed by a federal contractor, since most large
companies have federal contracts. So this will affect much of the economy, and
impose massive new costs on American business.
Disturbingly, the new rules require a 7 percent quota not
just for the division of the company that receives a federal contract, but for
the company as a whole. And they require that the 7 percent quota be met not
just for the company as a whole, but also in each line of business in the
company. That means they effectively must be met even in job categories where
the number of disabled people is lower than average, either because the
qualified labor pool is disproportionately able-bodied (like those that require
hard physical labor) or because the job is not compatible with certain mental
or psychological impediments that qualify as disabilities.
As the Cato Institute’s Walter Olson notes, the rules impose quotas in
all but name; the director of the Office of Federal Contract Compliance
Programs….To Read More….
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