On September 24, 1965, President Lydon Johnson signed Executive Order 11246, prohibiting employment discrimination by federal contractors and subcontractors based on race, color, sex or national origin, and mandating that contractors undertake affirmative action programs.[i] That Executive Order was modified by President Obama in 2014 to add sexual orientation and gender identity to the list of prohibited employment practices.[ii] The Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) implemented the Obama change in a December 9, 2014, final rule.[iii]
Except for the modification issued by President Obama, the basic tenants of Executive Order 11246 have been part of the employment requirements imposed on federal contractors for almost sixty years.[iv] OFCCP has responsibility for enforcing federal contracting non-discrimination and affirmative action requirements. In addition, these requirements have been included in the Federal Acquisition Regulation (FAR).[v]
On January 21, 2025, President Trump repealed Executive Order 11246 through Executive Order 14173,[vi] but allowed contractors to continue to comply with current requirements until April 21, 2025.
On July 1, OFCCP issued three proposed rules to end affirmative action requirements relating to race and sex in federal contracting. The proposed rules would:
- Rescind the Department of Labor regulations relating to Executive Order 11246 found in 41 CFR Part 60;[vii]
- Update and revise the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) regulations[viii] to remove references to Executive Order 11246 in these regulations and add administrative enforcement proceeding provisions directly applicable to the VEVRAA regulations; and
- Revise the implementing regulations for Section 503 of the Rehabilitation Act[ix] to remove references to Executive Order 11246 in these regulations, to rescind the requirement for contractors to “invite” applicants and employees to self-identity their status and to delete the requirement for contractors to analyze progress toward the seven percent utilization goal for individuals with disabilities. It would also add administrative enforcement proceeding provisions into these Section 503 regulations.
Comments on all three proposed rules will be accepted until September 2, 2025, but it is likely that the Department of Labor will move quickly following the close of the comment period to finalize these three regulatory changes.
There is no visible external action to modify the Federal Acquisition Regulation to align it with these Department of Labor rules. I would expect that this adjustment will be addressed when the “Revolutionary FAR Overhaul” (i.e. “FAR Rewrite 2.0”) modifies FAR Part 22.
Interestingly, as part of his Fiscal Year 2026 budget, President Trump is proposing to eliminate OFCCP and transfer to other agencies OFCCP’s remaining authority to enforce protections in federal contracts for veterans and workers with disabilities to other agencies; the EEOC would handle Section 503, and the Department of Labor’s Veterans’ Employment and Training Service would handle VEVRAA. Action on shutting down OFCCP could come as part of the congressional action on the Fiscal Year 2026 appropriations act and/or through other presidential action, such as withholding funds.
These actions are not done in isolation. On July 1, 2025, the Secretary of Labor announced that the Department has 63 deregulation actions in process or under consideration to revise regulations affecting multiple agencies within the Department “imposed by the prior administration.”[x] However, not all of the initiatives have been published for action. In addition, on June 27, 2025, the OFCCP Director wrote to covered federal contractors[xi] offering them the opportunity to voluntarily provide, within 90 days, “information about their efforts to wind down compliance with the EO 11246 regulatory scheme and ensure full compliance with the Nation’s non-discrimination laws.”
Conclusion
The statutory and regulatory foundations for federal contractors’ compliance with equal employment and affirmative are changing significantly – after sixty years. However, until the federal rules are finalized and contracts modified, contractors must continue to comply with the current requirements of Executive Order 11246, as amended, with the OFCCP implementing regulations, and with provisions included in your federal contracts.
Centre Law can help contractors understand the new landscape relating to equal employment and affirmative action. Contractors should also carefully consider whether and if they want to respond to the OFCCP Director’s invitation and should consult with counsel before taking such action.
If you have any questions or need any additional information, contact the author at [email protected] or the Centre Law attorney with whom you normally work.
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[i] Lydon Johnson Executive Order 11246 (9/24/1965) titled “Equal Employment Opportunity,” available at https://archives.federalregister.gov/issue_slice/1965/9/28/12315-12325.pdf. Last viewed July 7, 2025.
[ii] Barack Obama Executive Order 13672 (7/21/14), titled “Further Amendments to Executive Order 11478, Equal Employment Opportunity in the Federal Government, and Executive Order 11246, Equal Employment Opportunity,” available at https://www.govinfo.gov/content/pkg/CFR-2015-title3-vol1/pdf/CFR-2015-title3-vol1-eo13672.pdf. Last viewed July 7, 2025.
[iii] OFCCP 12/9/14 final rule, available at https://www.govinfo.gov/content/pkg/FR-2014-12-09/pdf/2014-28902.pdf. Last viewed July 7, 2025.
[iv] See generally 41 CFR Part 60. Last viewed July 7, 2025.
[v] See FAR 22.8 and the clause at FAR 52.222-26 (Sept 2016)
[vi] Donald Trump Executive Order 14173 (1/21/25), titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” available at https://www.govinfo.gov/content/pkg/FR-2025-01-31/pdf/2025-02097.pdf. Last viewed July 7, 2025.
[vii] OFCCP proposed regulation titled “Rescission of Executive Order 11246 Implementing Regulations,” July 1, 2025, available at https://www.govinfo.gov/content/pkg/FR-2025-07-01/pdf/2025-12276.pdf. Last viewed July 7, 2025
[viii]OFCCP proposed regulation titled “Regulations Implementing the Vietnam Era Veterans’ Readjustment Assistance Act,” July 1, 2025, available at https://www.govinfo.gov/content/pkg/FR-2025-07-01/pdf/2025-12006.pdf. Last viewed July 7, 2025.
[ix] OFCCP proposed regulation titled “Modification to the Regulations Implementing Section 503 of the Rehabilitation Act,” July 1, 2025, available at https://www.govinfo.gov/content/pkg/FR-2025-07-01/pdf/2025-12233.pdf. Last viewed July 7, 2025.
[x] See Department of Labor July 1, 2025, press release “Secretary Chavez-Deremer Unveils Aggressive Deregulatory Efforts in Push to Put the American Worker First,” available at https://www.dol.gov/newsroom/releases/osec/osec20250701-0. Last viewed July 7, 2025.
[xi] See June 27, 2025, Letter from OFCCP Director Eschbach, available at https://www.dol.gov/sites/dolgov/files/OFCCP/Letter-OFCCP-Director-Catherine-Eschbach-6.27.25-508c.pdf. Last viewed July 7, 2025.
