Office of Federal Contract Compliance Programs removes Executive Order 11246 affirmative action and nondiscrimination rules for federal contractors
In short
- What changed
- The Office of Federal Contract Compliance Programs (OFCCP), part of the Department of Labor, issued a final rule that removes the regulations carrying out Executive Order 11246, effective October 26, 2026. The President revoked that order on January 21, 2025, and the Department says it has not enforced these rules since.
- Who's affected
- Federal contractors and subcontractors, including federally assisted construction contractors, that were covered by Executive Order 11246. The Department estimates about 107,165 supply and service entities and 9,982 construction contractors, employing about 32 million workers.
- What to do
- Nothing new is required. Written affirmative action programs, placement and participation goals, and other Executive Order 11246 duties go away. Consider updating contractor compliance processes, while keeping in mind that Title VII of the Civil Rights Act of 1964 and state and local laws still apply, and that OFCCP keeps its hearing procedures for veterans and disability cases.
What changed
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From the sourceDocument heading
41 CFR Parts 60-1, 60-2, 60-3, 60-4, 60-20, 60-30, 60-40, 60-50, and 60-999
Also: Supplementary Information, I. Executive Summary
this final rule rescinds the regulations implementing E.O. 11246 and modifies the administrative enforcement proceeding procedures at 41 CFR part 60-30 to remove the E.O. 11246 components.
The rule removes and reserves Code of Federal Regulations (CFR) title 41 parts 60-1, 60-2, 60-3, 60-4, 60-20, 60-40, 60-50 and 60-999, the regulations that carried out Executive Order 11246.
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From the source41 CFR 60-30.1
rules of practice for all administrative proceedings instituted by the Office of Federal Contract Compliance Programs (OFCCP) ... which relate to the enforcement of equal opportunity under the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA), as amended, and section 503 of the Rehabilitation Act of 1973
Also: Footnote 15
If the VEVRAA and Section 503 rulemakings take effect, the Department will then rescind the 41 CFR part 60-30 regulations in their entirety.
The rule rewrites the hearing procedures in 41 CFR part 60-30 so they cover only OFCCP proceedings under the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA) and Section 503 of the Rehabilitation Act of 1973. The Department plans to remove part 60-30 entirely once separate VEVRAA and Section 503 rules take effect.
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From the sourceII.B.2. Nondiscrimination Provisions
This section requires each contractor with 50 or more employees and a contract of $50,000 or more to develop an annual AAP for each of their establishments.
Also: IV.B.2.a. Supply and Service Contractors
Contractors are no longer required to develop, update, and maintain written E.O. 11246 AAPs.
The written affirmative action program requirement goes away. It applied to each contractor with 50 or more employees and a contract of $50,000 or more, for each establishment.
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From the sourceII.B.1. Affirmative Action Provisions
For females, the participation goal is set to 6.9% of the total hours worked by the contractor's construction workforce in each trade.
Also: IV.B.2.b. Construction Contractors
contractors are no longer subject to the construction award notification requirements at 41 CFR 60-4.2
Construction contractors lose the construction-specific duties, including participation goals for women and minorities (6.9% of hours in each trade for women) and the notice of construction contract awards under 41 CFR 60-4.2.
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From the sourceIII.D.5. Other Comments
The pay transparency provisions at 41 CFR 60-1.4(a)(3), 60-1.4(b)(1)(3) and 60-1.35 are also part of this rescission
The pay transparency provisions, which barred contractors from retaliating against workers who ask about, discuss or disclose pay, are also removed.
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From the sourceII.B.2. Nondiscrimination Provisions
Section 60-1.12 outlines the record retention requirements that apply to covered contractors under E.O. 11246.
Also: Amendatory instruction 1
Under the authority of E.O. 14173, remove and reserve 41 CFR Part 60-1.
The record retention rules in 41 CFR 60-1.12, which required covered contractors to keep personnel and employment records for set periods, go away with the removal of part 60-1.
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From the sourceIII.D.5. Other Comments
41 CFR part 60-3 will be rescinded in its entirety
Also: III.D.5. Other Comments
this rescission does not affect other agencies' application and interpretation of the UGESP provisions.
The rule removes OFCCP's copy of the Uniform Guidelines on Employee Selection Procedures (part 60-3), but the Department says this does not affect other agencies' use of those guidelines.
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From the sourceFootnote 11
This final rule does not impact EEOC's actions with respect to the EEO-1 report.
The rule does not change the Equal Employment Opportunity Commission (EEOC) Employer Information Report (EEO-1 Report). It removes the contractor filing rule only as it appeared in the Executive Order 11246 regulations.
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From the sourceIV.B.1. Executive Summary of Analysis
Executive Order 14173, issued on January 21, 2025, revoked E.O. 11246 in its entirety and provided a 90-day transition period for compliance with existing regulations. That transition period has now expired.
Also: IV.B.1. Executive Summary of Analysis
the Department has not enforced the regulations for over a year following the revocation of E.O. 11246 in January 2025.
The Department says the 90-day transition period under Executive Order 14173 has expired and that it has not enforced these regulations for over a year.
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From the sourceIII. Discussion of Public Comments and Reasons for Rescission
(2) the affirmative action regulations conflict with the Constitution's equal protection principles and are inconsistent with Federal civil rights law, including Titles VI and VII of the Civil Rights Act of 1964
Also: III.D.4. Regulatory Alternative and Reliance Interests
Because the Department no longer possesses delegated authority under the Procurement Act to generally enforce contractor nondiscrimination obligations, it lacks a lawful basis to retain any piece of the OFCCP-administered nondiscrimination regulatory framework tied to E.O. 11246.
Beyond the revocation, the Department concludes that the affirmative action rules conflict with equal protection principles and federal civil rights law. It also says it no longer has delegated authority to enforce contractor nondiscrimination rules, so it did not keep any part of the framework.
Who is affected
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From the sourceIV.B.1. Executive Summary of Analysis
The rescission eliminates compliance obligations that previously applied to 107,165 supply and service entities and 9,982 construction contractors, employing approximately 32 million workers.
Also: IV.B.1. Executive Summary of Analysis
The benefits apply most directly to 9,982 construction contractors and a subset of supply and service contractors (101,850 entities) that meet the affirmative action thresholds (totaling approximately 111,832 contractor entities).
The Department estimates the removed obligations applied to 107,165 supply and service entities and 9,982 construction contractors, employing about 32 million workers. About 111,832 of these met the affirmative action thresholds.
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From the sourceIV.B.1.c. Baselines
The entities affected by the final rule include supply and service contractors, construction contractors, and federally assisted construction contractors and subcontractors meeting applicable employee and contract dollar thresholds, across a wide range of industries.
Affected employers include supply and service contractors, construction contractors, and federally assisted construction contractors and subcontractors across many industries.
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From the sourceIII.D.3. Effects on Employment Discrimination
they noted that Title VII does not apply to small businesses with fewer than 15 employees, whereas the E.O. 11246 nondiscrimination regulations apply to such small businesses, as long as they have more than $10,000 in Federal contracts.
Commenters noted that the Executive Order 11246 nondiscrimination rules reached small contractors with fewer than 15 employees and more than $10,000 in federal contracts, which Title VII does not cover.
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From the sourceIII.D.3. Effects on Employment Discrimination
the E.O. 11246 regulations also prohibit contractors from taking adverse employment actions against applicants or employees who inquire about, discuss, or disclose information about their pay or their co-workers' pay
Also: III.D.4. Regulatory Alternative and Reliance Interests
that interest is preserved because Title VII provides a comprehensive and well-established framework prohibiting employment discrimination.
Employees and applicants of contractors lose the Executive Order 11246 protections, including protection for discussing pay. The Department says Title VII and enforcement by contracting agencies continue to protect them.
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From the sourceIII.D.5. Other Comments
religious employers who are contractors do not need an exemption and may continue to exercise their sincerely held religious beliefs in the employment of individuals in their businesses, consistent with existing Federal civil rights law.
The Department says religious employers that are contractors no longer need the Executive Order 11246 religious exemption.
What it means in practice
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From the sourceIV.B.5. Net Benefits and Distribution
The Department estimates quantifiable cost savings of approximately $996.37 million annually from reduced paperwork and compliance burdens.
Also: IV.B.2.f. Total Quantified Compliance Cost Savings
the Department estimates that the final rule eliminates approximately 9,875,221 hours of annual burden.
The Department estimates about $996.37 million in annual savings from about 9,875,221 fewer hours of compliance work each year.
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From the sourceIV.B.4. Costs of the Final Rule; Rule Familiarization Costs
The Department estimates that it will take one hour for a Human Resources Manager or Management Analyst to read the final rule.
Also: IV.B.1. Executive Summary of Analysis
The only cost of the final rule is rule familiarization, which is likely negligible because the Department has not enforced the regulations for over a year following the revocation of E.O. 11246 in January 2025.
The only cost the Department identifies is reading the rule, which it estimates at one hour per establishment and calls likely negligible.
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From the sourceIV.B.4. Costs of the Final Rule; Rule Familiarization Costs
Contractors may choose to maintain certain employment practices previously undertaken for AAP compliance, but such practices would be voluntary
Contractors may keep practices they adopted for affirmative action compliance, but those practices are now voluntary.
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AmendSignal analysisIII.B.3.a. Conflict With Title VII of the 1964 Civil Rights Act
Many employment actions taken to comply with the E.O. 11246 affirmative action regulations would not fall within the narrow Weber-Johnson framework and would instead constitute direct evidence of unlawful discrimination in violation of Title VII.
Contractors that choose to keep race- or sex-based goals should note that the Department now views many actions taken to meet such goals as evidence of discrimination under Title VII.
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From the sourceIII.D.2. Efficiency of Government Contracting
contractors are required to comply with those laws regardless of whether Federal regulations remain in effect.
Also: III.D.2. Efficiency of Government Contracting
States including Indiana, Ohio, Florida, and Texas prohibit employers contracting with those states to have race- or sex-based hiring preferences of any sort.
State and local employment and contracting laws still apply. The Department notes that some states, including Indiana, Ohio, Florida and Texas, bar their contractors from race- or sex-based hiring preferences.
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From the sourceIII.D.3. Effects on Employment Discrimination
Executive Order 14398 requires procuring agencies to ensure that contractors do not engage in unlawful race-based discrimination, placing enforcement responsibility with the contracting agencies themselves rather than OFCCP.
Also: II.D. Executive Order 14398
Executive Order 14398 also directs the Federal Acquisition Regulatory Council to promulgate implementing regulations.
Also: III.D.5. Other Comments
compliance with E.O. 14173 is outside the scope of this rulemaking.
Separate executive orders continue to apply to contractors. Executive Order 14398 puts enforcement of a race nondiscrimination contract clause with contracting agencies and directs the Federal Acquisition Regulatory Council to write implementing rules. The Department says compliance with Executive Order 14173 is outside this rule.
What to do
Required
The rule does not require employers to do anything new. It removes Executive Order 11246 obligations, and the Department says reading the rule is the only cost, which may not even be needed.
Worth considering
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AmendSignal suggestionIV.B.2.a. Supply and Service Contractors
Contractors are no longer required to develop, update, and maintain written E.O. 11246 AAPs.
Consider retiring the Executive Order 11246 affirmative action program process (annual written plans, utilization analyses, placement goals and certifications) after confirming that no other rule you are subject to still requires a part of it.
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AmendSignal suggestionIV.B.4. Costs of the Final Rule; Rule Familiarization Costs
Contractors may choose to maintain certain employment practices previously undertaken for AAP compliance, but such practices would be voluntary
Also: III.B.3.a. Conflict With Title VII of the 1964 Civil Rights Act
Many employment actions taken to comply with the E.O. 11246 affirmative action regulations would not fall within the narrow Weber-Johnson framework and would instead constitute direct evidence of unlawful discrimination in violation of Title VII.
Consider reviewing any practices you keep voluntarily, such as goals or targeted outreach, in light of the Department's view that actions taken to meet race- or sex-based goals can be evidence of discrimination under Title VII.
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AmendSignal suggestionII.B.2. Nondiscrimination Provisions
This section includes the requirement that contractors state in all solicitations or advertisements for employment that applicants will receive consideration without regard to one or more of the protected bases
Consider reviewing job advertisements, subcontract templates and policies that cite Executive Order 11246, and confirm which equal opportunity statements other rules still require before removing them.
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AmendSignal suggestionIII.D.5. Other Comments
The pay transparency provisions at 41 CFR 60-1.4(a)(3), 60-1.4(b)(1)(3) and 60-1.35 are also part of this rescission
Also: III.C.2.c. Nondiscrimination Regulations
Some commenters noted that the National Labor Relations Act (NLRA) protects certain workers from retaliation for engaging in ``concerted activity,'' including wage discussions
Consider reviewing pay transparency notices and policies adopted under the old rule before changing them. The document notes that the National Labor Relations Act protects certain workers who discuss wages.
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AmendSignal suggestionFootnote 11
This final rule does not impact EEOC's actions with respect to the EEO-1 report.
Consider keeping your EEO-1 Report process in place and checking your filing duty under EEOC rules, since this rule does not change the report.
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AmendSignal suggestionII.B.2. Nondiscrimination Provisions
Section 60-1.12 outlines the record retention requirements that apply to covered contractors under E.O. 11246.
Consider setting a retention policy for affirmative action and personnel records created under the old rules, since the rule removes the retention requirement but does not address existing records.
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AmendSignal suggestionII.D. Executive Order 14398
Executive Order 14398 also directs the Federal Acquisition Regulatory Council to promulgate implementing regulations.
Also: III.D.2. Efficiency of Government Contracting
States including Indiana, Ohio, Florida, and Texas prohibit employers contracting with those states to have race- or sex-based hiring preferences of any sort.
Consider tracking the Federal Acquisition Regulatory Council rules under Executive Order 14398 and new nondiscrimination clauses from your contracting agencies, as well as state contracting laws that limit hiring preferences.
Open questions
The source leaves these open. We'll update this record if a later document answers them.
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What happens to Executive Order 11246 compliance reviews, complaints or conciliation agreements that were still open?
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How long should contractors keep records they created under the old Executive Order 11246 retention rules?
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When will the Executive Order 14398 nondiscrimination clause appear in federal contracts?
History
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Rescission of Executive Order 11246 Implementing Regulations Source (opens in a new tab)