The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has issued a final rule rescinding the regulations that implemented Executive Order 11246, which historically governed federal contractor affirmative action and equal employment opportunity requirements. The rule follows the January 2025 revocation of Executive Order 11246 by Executive Order 14173 and becomes effective October 26, 2026.
The rule represents a major change for federal contractors because it eliminates longstanding affirmative action program obligations that had been in place for decades under Executive Order 11246.
Background
Prior to its revocation, Executive Order 11246 prohibited covered federal contractors and subcontractors from discriminating on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin, and required many contractors to maintain affirmative action programs designed to promote equal employment opportunity. OFCCP administered and enforced these requirements through a series of regulations contained in 41 CFR Parts 60-1, 60-2, 60-3, 60-4, 60-20, 60-40, and 60-50.
Executive Order 14173 revoked Executive Order 11246 on January 21, 2025, prompting the Department of Labor to rescind the implementing regulations.
Affirmative Action Program Requirements Eliminated
The most significant effect of the rule is the removal of federal contractor affirmative action program requirements that existed solely under Executive Order 11246.
As a result, OFCCP is rescinding regulations that required many covered federal contractors to:
- Develop and maintain written affirmative action programs (AAPs);
- Conduct workforce utilization analyses;
- Evaluate workforce demographics by race and sex;
- Establish placement goals for women and minorities;
- Maintain certain affirmative action records and analyses; and
- Comply with various affirmative action planning and reporting obligations.
The rule also eliminates construction-industry participation goal requirements for women and minorities that applied under Executive Order 11246’s regulatory framework.
OFCCP Enforcement Authority Significantly Reduced
The final rule removes OFCCP’s Executive Order 11246 enforcement framework, including regulations governing compliance evaluations, affirmative action reviews, administrative enforcement proceedings, and related sanctions tied specifically to Executive Order 11246.
OFCCP is also removing Executive Order 11246-related provisions from its administrative procedures regulations.
Existing Federal Anti-Discrimination Laws Remain in Effect
Importantly, the rescission does not eliminate employers’ obligations under federal anti-discrimination laws.
Federal contractors and other employers remain subject to laws such as:
- Title VII of the Civil Rights Act of 1964;
- The Americans with Disabilities Act (ADA);
- The Age Discrimination in Employment Act (ADEA);
- The Genetic Information Nondiscrimination Act (GINA);
- Section 503 of the Rehabilitation Act; and
- VEVRAA (the Vietnam Era Veterans’ Readjustment Assistance Act).
Accordingly, employers must continue complying with applicable nondiscrimination obligations even though the Executive Order 11246 affirmative action framework is being rescinded.
Impact on Section 503 and VEVRAA
The rescission of Executive Order 11246 does not eliminate federal contractor obligations arising under Section 503 of the Rehabilitation Act or VEVRAA. However, OFCCP has separately amended those regulatory frameworks through related rulemakings.
Federal contractors should therefore evaluate Executive Order 11246 changes separately from any obligations that remain under Section 503 or VEVRAA.
Employers Impacted
The final rule is most relevant to:
- Federal contractors and subcontractors;
- Employers currently maintaining Executive Order 11246 affirmative action programs;
- HR and compliance professionals responsible for OFCCP compliance; and
- Organizations subject to federal contract equal opportunity requirements.
Employer Takeaway
Before the rule’s October 26, 2026 effective date, federal contractors should review affirmative action program requirements, compliance procedures, recordkeeping practices, and contractor policies that were implemented solely to satisfy Executive Order 11246 obligations. While many affirmative action requirements are being rescinded, employers should remember that federal and state anti-discrimination laws remain in force and continue to govern employment decisions.
Contractors should also monitor developments relating to Executive Order 14398 and any future federal acquisition regulations that may impose new contract-related nondiscrimination requirements.