In the United States, doing business with the federal government comes with several regulations that federal contractors and subcontractors must adhere to after being awarded a contract – one of those is Executive Order 11246, which helps ensure equal employment opportunity (EEO).
Here, you’ll learn about the law and what you need to do to comply with the Office of Federal Contract Compliance Programs (OFCCP) regulations. Failing to adhere to the defined OFCCP regulations can result in financial penalties, cancellation of current contracts, ongoing reporting to the OFCCP, and reputation damage that could negatively impact future contracts and the company brand.
What is Executive Order 11246?
Executive Order 11246, signed in 1965 by President Lyndon B. Johnson, established requirements for non-discriminatory hiring and employment practices to be exercised by federal contractors and subcontractors.
Executive Order 11246, as defined by the OFCCP (part of the U.S. Department of Labor), “requires affirmative action and prohibits federal contractors from discriminating on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin. Contractors also are prohibited from discriminating against applicants or employees because they inquire about, discuss, or disclose their compensation or that of others, subject to certain limitations.”
Who does Executive Order 11246 apply to?
Supply and service businesses with contracts exceeding $10,000 within a one-year timeframe
Supply and service businesses with more than 50 employees and a single contract of $50,000 or more must also develop an affirmative action plan (AAP), as described in 41 CFR 60‐2
Construction businesses with contracts of $10,000 or more, with no minimum on employee count, must comply with the 16 specifications found here
For more on jurisdiction thresholds and inflationary adjustments for Executive Order 11246, visit here.
Tips to maintain Executive Order 11246 compliance
Retain all job listing and posting data
Develop and update employee policies, procedures, and practices
Have a diversity outreach plan for finding candidates
Create and retain records on hires, terminations, and promotions
Create and administer an Affirmative Action Program (AAP), if required
Disclaimer: This is not intended to offer legal advice. Secure legal counsel when ensuring government compliance.
If you’re a federal contractor or subcontractor, looking for a robust compliance solution, JobTarget’s OFCCP offerings can automate much of the compliance process and provide integral support during an audit. Click below to contact us to learn more.