What is Executive Order 11246?

Note: Executive Order 11246 was rescinded on January 21, 2025. Federal Contractors may still comply with Executive Order 11246 for 90 days. Please seek further guidance on current obligations.

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

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.